• Advertise
  • Contact Us
  • About Us
  • Supplier Directory
  • SCB YouTube
  • Login
  • Subscribe
  • Logout
  • My Profile
  • LOGISTICS
    • Air Cargo
    • All Logistics
    • Express/Small Shipments
    • Facility Location Planning
    • Freight Forwarding/Customs Brokerage
    • Global Gateways
    • Global Logistics
    • Last Mile Delivery
    • Logistics Outsourcing
    • LTL/Truckload Services
    • Ocean Transportation
    • Rail & Intermodal
    • Reverse Logistics
    • Service Parts Management
    • Transportation & Distribution
  • TECHNOLOGY
    • All Technology
    • Artificial Intelligence
    • Cloud & On-Demand Systems
    • Data Management (Big Data/IoT/Blockchain)
    • ERP & Enterprise Systems
    • Forecasting & Demand Planning
    • Global Trade Management
    • Inventory Planning/ Optimization
    • Product Lifecycle Management
    • Sales & Operations Planning
    • SC Finance & Revenue Management
    • SC Planning & Optimization
    • Sourcing/Procurement/SRM
    • Supply Chain Visibility
    • Transportation Management
  • GENERAL SCM
    • Business Strategy Alignment
    • Education & Professional Development
    • Global Supply Chain Management
    • Global Trade & Economics
    • HR & Labor Management
    • Quality & Metrics
    • Regulation & Compliance
    • SC Security & Risk Mgmt
    • Supply Chains in Crisis
    • Sustainability & Corporate Social Responsibility
  • WAREHOUSING
    • All Warehouse Services
    • Conveyors & Sortation
    • Lift Trucks & AGVs
    • Order Fulfillment
    • Packaging
    • RFID, Barcode, Mobility & Voice
    • Robotics
    • Warehouse Management Systems
  • INDUSTRIES
    • Aerospace & Defense
    • Apparel
    • Automotive
    • Chemicals & Energy
    • Consumer Packaged Goods
    • E-Commerce/Omni-Channel
    • Food & Beverage
    • Healthcare
    • High-Tech/Electronics
    • Industrial Manufacturing
    • Pharmaceutical/Biotech
    • Retail
  • THINK TANK
  • WEBINARS
    • On-Demand Webinars
    • Upcoming Webinars
    • Webinar Library
  • PODCASTS
  • VIDEOS
  • WHITEPAPERS
Home » Blogs » Think Tank » Supply Chain Leaders, It’s Time to Play Offense

Think Tank
Think Tank RSS FeedRSS

Supply Chain Leaders, It’s Time to Play Offense

Resiliency
Photo: Pexels
April 18, 2021
Mark Dohnalek, SCB Contributor

The disruptive impacts of COVID-19 on supply-chain security have been analyzed extensively, and last month’s Suez Canal crisis has provided yet another opportunity for analyzing and mitigating risk. 

The real lessons of both these events are less about defying disruption and more about driving growth. In other words, to fully grasp the insights afforded from the events of 2020, we need a playbook that focuses as much on “offensive” moves as “defensive” ones. This gives supply-chain leaders a much better chance of creating winning outcomes. Here are some plays that can be the most beneficial to understand. 

Aim to adapt. Survival and adaptation are two different animals. In a crisis, the primary mandate is to survive, but an exclusive focus on survival often results in death. In every aspect of life, the most effective way to not only survive but also thrive, is to adapt. 

Adaptation is both a growth mindset and a “meta mandate” that is just as relevant after a crisis subsides as during it. And while adaptation may include defensive elements, it is primarily an “offensive” or “future-focused” position. For instance, rather than asking, “How can my business be less vulnerable?” it asks, “What opportunities can I identify for building strength?” In response to the weeklong Suez bottleneck, more adaptive-oriented leaders focused on more than the problems at hand. They began mapping alternate transit routes and, where necessary, doubling down on procurement commitments. 

Design for diversity. There is no longer questioning that a diverse sourcing network is a necessity. Now, the real question is how to effectively design it. Your network can only be as diverse as its design, and your suppliers can only be as strong as your relationships with them. 

This principle can be seen even in the evolution of industry terminology. There is a good reason that as time has passed, the term “supply chain” is being supplanted by “sourcing network.” While both terms are perfectly acceptable, the second highlights how supply chains are not linear structures (as the name misleadingly suggests) but rather a complex web of interconnected relationships. Beyond making your sourcing networks more secure, designing for diversity and cultivating relationships with your suppliers can also help you work together to identify and engineer growth opportunities. 

Think globally, but consider acting locally. Global trade issues, consumer preferences and other disruptors are accelerating the shift from “source anywhere” to “source smartly and ethically.” This means that local sourcing will play a larger role in successful growth strategies. Because we live in such an interconnected world, companies will always need to think globally. In many cases, domestic sourcing (either primary or secondary) can deliver multiple advantages. 

In cases where global sourcing is the only sensible solution, doing business with a single partner with multiple company-owned operations across several continents has multiple advantages. First, it is an effective risk-reduction strategy (as it ensures that all your “eggs” are never kept in one “basket”).     Second, a one-source partner has high levels of coordination, transparency and oversight built into its business model. Last, it is easier to effectively communicate, collaborate and innovate when you work with the same team from start to finish.

Rework and reposition. Due to global recovery activities, we will likely be headed into a period of higher inflation. Pricing challenges are imminent, and companies will need to rework their pricing strategies and reposition their value propositions. This will be necessary for attracting new customers and retaining existing ones. Periods like the one we appear to be entering entail a renegotiating of “loyalty lines” between businesses and customers. The near future will bring a prime opportunity for redrawing those lines in a way that clearly positions your business as a more desirable choice than your competitors. 

Prepare for pent-up demand. With chip and other component shortages, are looking at an unprecedented economic surge of pent-up demand that will result in heightened GDP, which may catch many companies off guard. Preparing for this demand is vital to capitalizing on the immense growth opportunities that will accompany it. Along with pent-up demand, expect extended lead times and plan accordingly. 

Ramp up Industry X.0. Accenture defines Industry X.0 as “A new digital paradigm for businesses to embrace constant technological change — and profit from it.” The basic idea is that businesses need to strategically combine digital technologies to drive top-line and bottom-line growth. Industry X.0 represents a fundamental step in the larger quest for digital transformation. Artificial intelligence, machine learning and predictive analytics will not only mitigate supply-chain disruption, but also reveal profitable opportunities much earlier in the game. 

While we continue to contend with the aftermath of 2020, there are far more valuable lessons to be learned than merely how to defend against disruption. By taking a forward-looking perspective, companies can mine insights for assuming an offensive position that drives adaptation, innovation and growth. 

Mark Dohnalek is president and CEO of Pivot International, a global manufacturing, engineering and product-development company.

Logistics Data Management (Big Data/IoT/Blockchain) Sourcing/Procurement/SRM Supply Chain Planning & Optimization Technology Business Strategy Alignment Global Supply Chain Management Global Trade & Economics Supply Chain Security & Risk Mgmt

RELATED CONTENT

RELATED VIDEOS

Subscribe to our Daily Newsletter!

Timely, incisive articles delivered directly to your inbox.

Popular Stories

  • karen-jones.jpg

    Watch: Four Industry Disrupters Impacting Logistics

    Data Management (Big Data/IoT/Blockchain)
  • THE SPACE AROUND A COMPUTER KEYBOARD IS CLUSTERED WITH IMAGES GENERIC SHIPPING BOXES

    How Suppliers Can Overcome E-Commerce Supply Chain Challenges

    Data Management (Big Data/IoT/Blockchain)
  • A CSX TRAIN IS SEEN FROM THE FRONT

    CSX’s New CEO Has a Big Idea for Railroads: Carry More Freight

    Rail & Intermodal
  • A ROBOT ARM AND A HUMAN ARM ALMOST TOUCH FINGERS

    AI + SCM: A Formula for Automation and Optimization

    Supply Chain Planning & Optimization
  • A SEATED PERSON HOLDS A SMARTPHONE, SHOPPING

    Retail Consumer Data: The Key to Personalization, or Privacy Violation?

    Regulation & Compliance

Digital Edition

Scb q1 2023 cover

2023 Supply Chain Management Resource Guide: Packing for a Difficult Year

VIEW THE LATEST ISSUE

Case Studies

  • New Revenue for Cloud-Based TMS that Embeds Orderful’s Modern EDI Platform

  • Convenience Store Client Maximizes Profit and Improves Customer Service

  • A Digitally Native Footwear Brand Finds Rapid Fulfillment

  • Expanding Apparel Brand Scales Seamlessly with E-Commerce Technology

  • How a Global LSP Scaled its Security Program and Won More Business

Visit Our Sponsors

Orderful Yang Ming Alithya
Barcoding Blue Yonder BNSF Logistics
CoEnterprise Data Capture Deposco
E2open GAINSystems Generix
Geodis GEP GreyOrange
Here Holman Logistics Honeywell Intelligrated
IFM Infor Inmar
Keelvar Kinaxis Korber
Lean Solutions Group 2H Liberty SBF Locus Robotics
Logility LogistiVIEW Lucas Systems
MCA Connect MPO Nvidia
Old Dominion OpenText ORTEC
Overhaul Parsyl PMMI
QIMA Redwood Logistics Ryder E-commerce by Whiplash
Saddle Creek Logistics Schneider Dedicated Setlog Holding AG
Ship4WD Shipwell Shyft
Sourcemap Tecsys TGW Systems
Thomson Reuters Tive Trailer Bridge
Vecna Robotics Verity
Verusen
  • More From SCB
    • Featured Content
    • Video Library
    • Think Tank Blog
    • SupplyChainBrain Podcast
    • Whitepapers
    • On-Demand Webinars
    • Upcoming Webinars
  • Digital Offerings
    • Digital Issue
    • Subscribe
    • Manage Your Subscription
    • Newsletters
  • Resources
    • Events Calendar
    • SCB's Great Supply Chain Partners
    • Supplier Directory
    • Case Study Showcase
    • Supply Chain Innovation Awards
    • 100 Great Partners Form
  • SCB Corporate
    • Advertise on SCB.COM
    • About Us
    • Privacy Policy
    • Contact Us
    • Data Sharing Opt-Out

All content copyright ©2023 Keller International Publishing Corp All rights reserved. No reproduction, transmission or display is permitted without the written permissions of Keller International Publishing Corp

Design, CMS, Hosting & Web Development :: ePublishing