Blockchain, Big Data, Integrated Business Planning, Internet of Things: the supply chain trends are flying around our ears. Which trends are currently dominating the market? And which themes can we dismiss as hypes? Martijn Lofvers, Trendwatcher and CEO of Supply Chain Media, gives his interpretation in the run-up to the ICT & Logistics trade fair.
Trends
Internet of Things (IoT)
As the cost of sensors has been drastically reduced, IoT is currently being used on an increasingly large scale, Lofvers observes. "Throughout the chain, more and more sensors are being placed and linked to an upstream system. You can track goods, measure the temperature of goods, see if containers have been open, and so on."
Yet it is not always easy for companies to get into IoT. "Managers struggle to measure ROI. You have to know very well what you want to measure and why. Where is the pain in the chain? What does it benefit you to have that information? Only then does it make structural sense."
Sales & Operations Planning (S&OP)
According to the supply chain trendwatcher, S&OP is also currently being implemented in many companies. "Earlier this year, we organised a trend dinner for supply chain professionals with Supply Chain Media. The central question that evening: what are trends and what are hypes? What definitely emerged as a trend in that is S&OP. Many companies are structurally coordinating their production and logistics with the sales department on a monthly basis."
That, according to Lofvers, is also where the hype comes in, namely Integrated Business Planning (IBP). "That is the most mature phase of S&OP, where everything is translated into euros and measured against annual budgets. It looks at margins and profits, rather than volumes and costs. Only a few companies are still in that phase, although they all shout that they are working on IBP. When you ask further, it turns out that in their finance department they are still using their own figures and not fully those of the IBP process."
Business strategy
Companies that want to be successful need to choose a strategy. However, previous McKinsey research shows that only 1 in 3 companies have a competitive business strategy that allows them to beat the competition. "Companies often want to be all kinds of things. You can't be Apple (Product Leadership), Walmart (Operational Excellence) and Cisco (Customer Initimacy) at the same time. Not having a choice means not having a strategy. Many companies are now coming to that realisation. So you can call that a trend."
With a certain business strategy comes a certain supply chain. "At ICT & Logistics, I am giving a seminar on six supply chain types that you can link to your strategy. For example, are you going for Product Leadership? Then your supply chain has to be fast and flexible. With Operational Excellence, you have a planned flow with as few peaks as possible and you have to avoid high costs at all times."
War on talent
Lofvers sees the staff shortage as a major theme, because it touches all other themes. "There is a crying shortage of demand planners, programmers, as well as supply chain managers. Repetitive tasks can be automated, so companies need fewer hands. But who is going to automate those tasks? That requires IT talent, and let's face it, we have a shortage of just that."
One solution is to tap into new talent. The biggest pool of insufficiently tapped talent? Women, believes Lofvers. "They are there, but they often don't get in in a male-dominated world. My advice to them is: plunge into innovations like supply chain. When you have intellect here as a woman, the management is always willing to listen and you quickly stand out."
Hypes: Big data and Blockchain
There are also hypes: technologies that are currently getting too much attention for the possibilities they offer. Lofvers: "Big data is such a hype. Many companies cannot yet even handle internal structured data from an ERP or WMS, or small data. Big data also includes external unstructured data, such as from social media. My advice is therefore: learn to walk before you run."
"Then there is Blockchain, the hype of all hypes. Only pilots have been done with it so far, of limited scope. The name 'blockchain' suggests a whole chain is linked to it, but in the successful pilots, only partial processes are being improved."
Supply Chain Arena
During the upcoming edition of ICT & Logistiek, extra attention will be paid to supply chain management in the so-called Supply Chain Arena, organised by BLMC, Solventure and Supply Chain Media. Lofvers: "Visitors can attend two days of knowledge sessions and workshops with all kinds of supply chain experts. We offer a programme for beginners and for advanced users. Some companies are in the early stages, while others are well beyond the basic level. That's why we deliberately chose to differentiate the programme."
Personal advice will be given to visitors during the speed consults. Companies with a specific question can request a free 10-minute consultation prior to the fair. "In this way, we hope to lower the threshold for visitors to ask for advice. The experts do not only give advice, but can also, for example, connect you with companies that have gone through the same thing. I have very high expectations from that."
More information about the Suppy Chain Arena and the programme can be found on the ICT & Logistiek website.
