Change is never easy – very few people and companies are quick to undergo big transformations. But at what point does it become a necessity and how can large-scale change be managed effectively?  

When it comes to the supply chain specifically, the world has changed dramatically (and it’s changing at a faster rate than ever), but the way supply chains are managed and planned has remained the same for decades. Unfortunately, many enterprises are still trying to use the manual, outdated practices of the past to solve for today’s complex supply chain planning needs.  

As Lora Cecere, Founder at Supply Chain Insights, recently put it, “change doesn’t happen ‘just because.’ Oftentimes people stumble into disruption and react.” And in the past several years, disruption has been aplenty. That’s why ketteQ recently sat down with several supply chain industry thought leaders to discuss how and why the way supply chains are managed is changing – and how large enterprises can manage these transformations to succeed. Keep reading to learn more.  

READ MORE: Supply Chain Planning Predictions 2024: Trends and Insights from Industry Experts

Legacy Systems Hinder Adaptability and Innovation  

There are so many components to a supply chain – transportation, warehouse management, planning and more – and all are key to smooth operations. But when these practices are siloed, the ability to be proactive or innovative is erased. Many teams today are stuck in this reactive state, putting band-aids on existing processes and using legacy processes, systems and – worst of all – spreadsheets to keep things running (albeit, oftentimes inefficiently).  

Relying on these outdated methods poses significant risk to business, including:  

• Lack of real-time visibility
• Human errors  
• Inability to scale  
• Data processing issues  
• Version control concerns  
• Adaptability and resiliency challenges  
• Non-compliance  

It's time for this conventional wisdom – and this outdated way of doing business – to change. Bruce Richardson, Chief Enterprise Strategist at Salesforce.com, put it perfectly when he shared “too many supply chain leaders rely on Excel for their tool of choice. During the COVID-19 pandemic, companies were doing brave things to meet demand. We need to expand upon this bravery as we enter 2024 and beyond.”  

Regulatory Requirements, Talent Turnover and Technology are Driving Change

It’s not just disruptions that are forcing change. It’s also new regulatory requirements, workforce turnover and technology advancements, among other factors.  

For example, Bruno Zindy, EMEA Presales Leader at ketteQ, shared “supply chain leaders need to think about sustainability. In France, for example, the government provides a financial benefit to end-users who decide to repair an item opposed to buying a new one. This means a new supply chain – not just investing in spare parts planning, but even how items are manufactured to be repaired easily and efficiently.”  

He continued, “In Valencia, Spain, there is a law that prevents driving in the city if the vehicle is not eco-friendly. This is a completely new constraint, and these new norms are not represented in the models of manufacturers’ existing toolsets.”

And when it comes to the talent pool, unfortunately turnover among supply chain professionals is as high as 50%, which is why investing in the right cloud-based supply chain planning technologies is critical. Rick McDonald, Chief Supply Chain Officer at The Clorox Company, shared that “supply chain talent is going to become scarcer, but one way to retain existing high performers is to have the leading, cutting-edge supply chain planning technology. If you have the right gear, top talent will want to come in and keep their skills sharp – especially recent college graduates.”

New ways of thinking – which oftentimes come in the form of new talent – are key to challenging supply chain conventional wisdom. Cheryl Capps, former Chief Supply Chain Officer at Corning and Executive Advisor, argued that “there might be a generation of supply chain professionals that simply just don’t shift their mindsets because they don’t know how. We need to get younger professionals a seat at the table – if they advance, we all advance.”  

Cecere added on that “companies aren’t using their technologies well, in large part because the turnover of employees and changes in generations have lowered the understanding of how we do planning.”  

Redefining Supply Chain Conventional Wisdom  

It will take true leaders and innovators to execute on the vision that today’s most complex supply chains require. Afterall, “there has to be some sort of forcing factor for change, whether that’s company performance, downward pressure on margins or a new forward-thinking leader who understands the risk of clinging to the status quo and wants to implement change,” shared Michael Ciatto, Senior Vice President and Global Leader, Supply Chain Service Line at Genpact.  

He continued to emphasize that “change requires leaders to challenge the status quo” and that leaders must have “constructive and collaborative discussions on what is best for the enterprise based on consumer feedback, financial performance, supply chain analysis and more. Champions for change must come from both within and outside the supply chain function to truly drive change.”

So, as industry leaders challenge the long-standing norms in supply chain planning, it will become clear that embracing change is not only about redefining conventional wisdom, but also adopting new, more forward-thinking strategies to assess risk in today’s ever-evolving landscape.  

To learn more about challenging supply chain conventional wisdom and explore all of the pivotal trends that will shape 2024, check out our  newest eBook.