Supply Chain is still a People Business
There is no doubt that technology is having a big impact on every part of supply-chain operations, from planning to logistics. However, on its own, technology is not a panacea and supply chain is still, very much, a people business.
Supply Chain Digitization is becoming a dominant theme of discussion among companies that seek to exploit its benefits as a means of competitive advantage and market leadership. Innovative technologies from: Artificial intelligence (AI), Advanced Analytics, Internet of Things (IoT), Robotics and Blockchain are some of the trends transforming supply chains. These technologies are driving major change in the logistics, transport and freight forwarding industries with the promise of greater efficiencies, reduced labour cost and improved profitability.
Indeed, in 2018 Harvard Business Review were predicting the end of traditional supply chain management in their provocatively titled article: “The Death of Supply Chain Management”. In it the authors argued that within 5-10 years the (traditional) supply chain function may be obsolete, replaced by largely automated end-to-end processes, requiring very little human intervention. The authors went on to conclude “clearly the death of supply chain management as we know it is on the horizon”
Best-of-the-best supply chain performers embrace digital
There is no doubt that leading companies are exploring digital possibilities to automate labour-intensive tasks, improve productivity and accelerate profitable growth. According to Gartner Consulting “a wave of automation and augmentation has sped through corporate supply chains over the last five years” and companies that grace their ‘Supply Chain Top 25’ tend to be early adopters of new business concepts and technologies.
Equally, there is no doubt that technology is having a big impact on every part of supply-chain operations, from planning to logistics. However, on its own, technology is not a panacea and supply chain is still, very much, a people business.
Consider a recent study by McKinsey of technology vendors and supply chain executives that highlights how technology (and niche features) may well be ahead of the market. “That’s because the technology-first approach ignores an inconvenient truth: the intensely human nature of the supply chain” the authors argued.
Anne Waldes, CEO Trade Link International, believes one of the most important disruptions facing the transport & logistics (T&L) industry is technology and digitization, and companies of all sizes will need to embrace these disruptions within their business models or risk being left behind. The winners, Anne argues, will be those providers and companies that can bring people, processes and technology together for supply chain transformation. “Technology alone will not solve the many complicated economic, trade and political issues we were on the front-line of dealing with in 2019, many of which are unsolved and have become even more complex. Our clients rely on our knowledge and expertise to interpret market conditions and make the right supply chain decisions”.
Making the best strategic decisions for our clients
In 2019, in a feature piece titled ‘US-China Trade war:multinationals rethink their supply chains’, TradeLink reported how trade tensions between US & China had accelerated a multinational trend of shifting production and sourcing to alternative markets, with Vietnam, Malaysia, Thailand, South Korea, Taiwan, Japan, India and Pakistan being the largest beneficiaries. 2019 was also marked by protests in Hong Kong, turmoil in the Middle East, Brexit and a revamped NAFTA. Political and economic uncertainty in low-cost country suppliers acted as a catalyst for many of our multinational clients to rethink and redesign their supply chains for the future.
Against this backdrop Trade Link clients relied on us to:
- Manage complex relationship ecosystems across many markets, coordinating between supplies, carriers, partners, customs and end-customers.
- Logistics network design with supplier consolidation hubs, responsible for multi-market vendor management programs and establishing robust operational procedures.
- Negotiate contracts and rates across multimodal carriers and transport modes that optimise our client’s criteria of time, cost and service.
- Act as a single point of contact for shippers, carriers, transport partners, customer authorities and consignees.
- Manage all downstream activities including storage, handling, value-added services and distribution to end-customer.
- Monitor supply chain performance, provide KPI reports and operate to a continuous improvement regime.
Striking a balance between technology and people
“While technology plays an important role in every part of supply-chain operations, it’s a long way from replacing the role of knowledgeable, experienced and specialist logistics teams at the coal face of supply chain management” says Edna Carr, VP of Global Sales, Trade Link International. “TradeLink is focused on building capacity and capability in key regions, which allows us to better support our clients to enter new markets and scale quickly. Ultimately it is about striking a balance between technology and people in working across complex supply chain ecosystems”.
In summary, the future supply chain will benefit greatly from advances in technologies and process automation when blended with skilled logistics practitioners who understand the opportunities and can take advantage of them to deliver operational effectiveness.
Learn more about how Trade Link’s supply chain strategies can increase your competitive advantage by strengthening your logistics operations and focusing on your end customers, contact us.
