Everything you know about supply chain visibility is wrong or at the very least it’s limited. You may look at your supply chain today and say “I have good supply chain visibility” but I’d ask you how you define it.
The Importance of Supply Chain Orchestration - Some Highlights from the Gartner Supply Chain Executive Conference in Arizona
Last week Gartner held its annual supply chain executive conference in Phoenix. Overall it was an excellent event, with more than 1,800 supply chain leaders in attendance.
Effective customer chain control can elevate your business to the next level while at the same time provide a competitive edge and help build a positive reputation for companies in any industry, and companies that ensure supply continuity and optimal functioning all along the supply chain are better able to satisfy the demands of their customers.
Times are quickly changing. Especially in Supply Chain Management many traditional phenomena are rapidly becoming obsolete.
As a Supply Chain Director you are forced to bridgetwo contradictory demands: customer intimacy and operational excellence. And even if you like to deal with challenges, this might cause headaches every once in a while. Maybe you know how to manage them, but do you have the systems to do so? Customer control can have a huge impact on a supply chain, for both logistics service providers (LSP’s) and shippers (manufacturers, wholesalers and retailers).
Outsourcing your logistics activities as a shipper (manufacturer, wholesaler, retailer) can be a strategic choice. In fact, many shippers have decided to do this expecting it would improve their supply chain performance. Recent studies show a continuing, positive overall nature of shipper-3PL relationships. Shippers however, tend to outsource only those activities that are more transactional, operational and repetitive. This will no longer hold.
Feb 14, 2015: It’s Valentine’s Day!
The doorbell rings and Martha rushes to open the door with eager anticipation. She is awaiting the bunch of beautiful, sweet-smelling, red roses that her husband surprises her with, at every Valentine’s Day. When she opened the door, however, her joy quickly turns to disappointment. A delivery boy stands outside, with a bouquet that holds a dozen wistful looking red roses that are nearing their end. Martha is unhappy and her husband is indignant with the florist.
Supply chain companies across the world work relentlessly hard in order to avoid Martha’s episode. A poorly orchestrated supply chain causes colossal financial losses, severe dips in customer happiness and tarnishes brand reputation in the matter of just a few minutes.
At the end of year, many top lists get published including rankings of top performers in Supply Chain Management.
Again, it seems the best supply chain of all has been overlooked: Santa Claus!
Let’s examine the super performance of Santa’s supply chain:
- 100% On time delivery - children always receive their presents in time
- 100% Complete fulfiment - families precisely get what they asked for
- 100% Cloud based service - the first supply chain literally running 'in the cloud'
Not convinced yet?
In my last blog I discussed the international e-commerce success of the American giant Amazon and eBay. We have seen that this combination of e-commerce and internationalization requires dynamic orchestration of the flows across the parties in the network of different supply chains for flexible e-fulfillment. The success of e-commerce seems unstoppable. See below how Alibaba in Asia and RFS Wehkamp in Europe develop international e-commerce. Is your company ready for this new Supply Chain Orchestration? Download the presentation on international e-commerce.