Building the Supply Chain of the Future: 5 Consumer Goods Companies Investing in Innovative Approaches
Clearly there is not a single approach that bests all competition, but the supply chain of the future moves far beyond data strategies and automation — it almost comes to life.
“Sentient is a Latin term for anything that is alive. It can feel, it can proceed,” says Jana. “The future of supply chain would move toward a real-time distinction execution network. That means it can feel as well as act."
"We have always had real-time analytics," he notes. "The thing that will change is real-time analytics becoming real-time decision making.”
Core to this will be developing supply chain resilience, currently a primary area of focus for consumer goods companies. By the end of 2022, half of all manufacturing supply chains will see the benefits of supply chain resiliency, according to IDC, resulting in 10 percent reduction in disruption impact.
CG companies that have made strategic investments in building out greater supply chain resiliency are able to "ensure the availability and affordability of products that are able to meet retailers demands," Tom Madrecki, VP of supply chain at the Consumer Brands Association, noted in a recent CGT webinar.
Buy-in can be a hurdle here, he pointed out, as CFOs and investors want to see short-term results. While some companies dive in, others are more strategic, taking "bites at the apple," but may be seeing more immediate payoffs.
Consultancy firm McKinsey & Company highlighted five areas where CG companies can build resiliency into their supply chains: creating end-to-end transparency, investing in digitization, improving communication and collaboration, embracing e-commerce, and building talent.
“The pandemic has tested many companies to the limit. And while COVID-19 has commanded the world’s attention, supply-chain shocks are becoming increasingly common. By investing in supply-chain resilience now, organizations have an opportunity to build critical agility into their supply chains, which will help them withstand not only the current crisis but also those to come.” — Ignacio Felix, Carolina Mazuera, Julian Salguero, and Frank Sänger at McKinsey & Company