The Five Critical Steps for Supply Chain Planning

“Designing and Building a Responsive Supply Chain in 2022,” the monthly supply chain virtual series hosted by the Supply Chain Automation LinkedIn Group, revealed the most important steps global supply chain companies can take to remain responsive and resilient. Special guest speaker Kirsten (Curtis) Hochberg, Managing Partner at Omega Partner Solutions, and an expert panel discussed techniques for navigating today’s chaotic supply chains. The supply chain expert panel included Bruce Richardson, Chief Enterprise Strategist at Salesforce; Mike Landry, SVP Supply Chain Service Line Global Leader at Genpact; and Cy Smith, at ketteQ.

Listen to the full webinar HERE.

How to have a resilient and responsive supply chain is more important now than ever before as supply chain leaders search for a North Star to guide them through unprecedented global supply chain turmoil.

Once the domain of an operations team, supply chain has become a dinner table term. Bank of America recently noted mentions of “supply chain” in Q3 2021 earnings reports from Fortune 500 companies jumped 412% from Q3 2020.

Smart companies are doing 5 key things, said Kirsten (Curtis) Hochberg, Managing Partner at Omega Partner Solutions.

1. Scenario Planning – It may seem silly to do scenario planning for potential problems when so many real problems exist, but by doing so companies can stave off major issues before they arrive, notes Hochberg. One company ran a drill to anticipate the exponential growth of demand. What if there were sudden orders for one million units? Running through that scenario, the company discovered there was an issue with one component that needed to be fixed. The company loaded up on the component and is now prepared if demand surges, said Hochberg.
2. Working With All Supply Chain Levels – Transparency across the entire spectrum of a supply chain is vital. Hochberg recalls one company having issues with lead times on a certain component. Calls were made not only to suppliers but also to their suppliers all the way to the OEM. Critical information from the OEM about delivery delays would have taken months to trickle through from the various suppliers to the company but pushing for transparency allowed the company to take action.
3. Act on Information – Too many companies take the initiative to collect valuable operational and supply chain data or information but fail to act quickly or at all. From product delay indicators to potential supply chain breaks, to alternative shipping options, companies frequently have information available that could significantly impact operations but are not aligned internally to capitalize on available data intelligence.
4. Work Cross Functionally – Supply chain resilience and responsiveness are no longer the chief domain of the operations team. Supply chain solutions now require the consistent engagement of the entire c-suite, along with pivotal departments. Cross-functional work, soliciting help from the marketing department, for example, keeps all teams rowing in the same direction, said Hochberg. When all teams are pursuing the clearest path to revenue, the company is more successful overall, she added.
5. Remember Risk Mitigation – Supply chain disruptions are now often highly publicized events. Container ships stranded off ports, trucking convoys, labor shortages, and product component shortages have become ubiquitous headlines. As a result, companies are in some ways far more engaged in risk mitigation. Hoch described a scenario planning exercise where a company estimated the cost of bringing container ships through the Panama Canal and into Savannah as a solution to mitigating shipping delays. It is expensive, but it’s an insurance policy, she said.

Advances in technology also are playing a key role in helping companies tackle the vital need for greater supply chain visibility. Sensor technology is improving, the use of robots is increasing to overcome labor shortages, and advanced software applications such as supply chain control tower are helping to better manage customer demand for product tracking – the so-called “where’s my stuff” calls.

Companies must stay vigilant in spotting trends and remain hyper-aware of supply chain disruption headlines to maintain responsiveness and keep operations running as smoothly as possible. The pandemic is still having a tremendous impact on shipping. Recently FedEx announced it would suspend expedited shipping in the face of the COVID-19 Omicron wave.

Visibility is the number one challenge every company faces, said ketteQ CEO Cy Smith. ketteQ was born, in part, from a mission to increase visibility across the entire supply chain. Integrating supply chain data and reacting faster is the future for supply chain companies, he notes.

ketteQ helps companies improve demand planning and integrate operations systems to provide the greatest visibility and achieve maximum revenue Reach out HERE.