How to Compete with the Next Generation Supply Chain
Supply chains are a key element in shaping the future of business. In fact, many traditional supply chain managers are in the business of leveraging their supply chain management processes as a competitive edge in comparison to their competitors. But, no one could have predicted the events of 2020 or the launchpad it presented to next generation supply chains. Newcomer startup companies with non-traditional industry views set a new precedent for the industry displaying how to navigate disruption and more importantly, how to remain resilient amidst a forecast of prolonged uncertainty. According to a recent survey by Gartner, more than half of supply chain organizations across a range of industries believe they are at risk of disruption by competitors in the coming years. The highest perceived risk comes from a range of nontraditional competitors.
Nontraditional competitors include both startups and digital giants like the Amazons and Uber’s of the world. These businesses have differentiated themselves from traditional models by greeting disruption with innovation and pairing innovation with customer needs. The nuances in supply chain management strategies, if executed correctly, have a very positive ROI.
We analyzed some of the common traits that both startups and major companies' supply chains all have in common. Here's what we saw…
Customer Focus
Keep a pulse check on customers' needs and expectations. More often than not we see companies resting on their laurels and reverting back to the customer archives to inform their product of service offering. In that instance, relying on old strategies gives competition a window of opportunity to take customers.
The customer experience can not afford to be undervalued. Build a relationship with your end users, find out what it is that they want, discover their pain points in their customer journey, and establish trust with your customers and grow closer to your customers.
Innovation
You probably were hoping that you could leave the word ‘innovation’ in 2020. But, we are here to remind you that if you are still straddling the line between innovation and regression or you find yourself somewhere in the middle, 2021 will be the deciding year for the livelihood and legacy of your organization.
Its true, customer demand is always fluctuating and capturing an accurate forecast can be quite tricky as well as temporary; however, companies must be listening and responding to customer demand at risk of becoming obsolete. More and more we are seeing established companies flip their business models and pursue a top down approach to have a more agile response model, much like a startup. This enables businesses to trim the fat of their old operating model and therefore be able to pivot their service or product offerings efficiently and in real time.
In addition, companies are increasingly making data-driven decisions to become more accessible and responsive to their customers.
Alignment
What truly separates next generation supply chains apart from traditional supply chains is that they are not married to old supply chain models that have withstood the test of time up until now. New supply chain strategies are flexible and agile in nature. Typically, their anchor point is innovation and purpose and with that, they are able to make moves that align both operationally and purposefully.
This is vastly different from many operating models that are focused primarily on performance to deliver results up to stakeholders and investors expectations.
Supply chain leaders and decision makers can combine traditional supply chain operating models that deliver output and nontraditional business models that are rooting in the customer experience and innovation. This combination of old and new, conventional and innovative is a formula for success.