Rethinking your Global Supply Chain
Matthew Webber writes about rethinking our Global Supply Chains. The world as we know it has changed. The speed, the relationships, the priorities, the tastes. We can access information, goods and services quicker than ever – and our environments politically, environmentally and structurally seem more volatile than ever before. And this is before we even get to the great awakener in COVID -19.
Article written by Matthew Webber
It is time to rethink our Global Supply Chains. The world as we know it has changed. The speed, the relationships, the priorities, the tastes. We can access information, goods and services quicker than ever – and our environments politically, environmentally and structurally seem more volatile than ever before. And this is before we even get to the great awakener in COVID -19.
“Insights from Matthew Webber | Matthew Webber is a specialist in strategy, program delivery and training, focused on driving business performance by developing commercial, operational and innovation capability. With over twenty years international experience, Matthew has worked across the globe with organisations undergoing immense change and comprehensive transformations. Inspired to create a world championed by kindness, where equitable opportunity is available for all - Matthew shares his vision through best-selling books and his sought-after keynotes. ”
The problem is of course, many of our global supply chains have been designed for an era that was perhaps more predictable, more stable and perhaps in an era where global supply chains were considered to be an enabler of business strategy as opposed to being at the very core of value creation, and business model design.
The focus of global supply chains has arguably been historically to leverage efficiency, optimisation and cost advantage to create value. The current economic, political, environmental and now global health climate now not only requires but forces us to rethink our Global Supply Chains beyond efficiency and cost advantage.
This begs the question – what then a Global Supply Chain must look like in order to thrive in such uncertain times. They must be;
1. Adaptable
Adaptability is the ability to be flexible to new situations, handle change and be able to balance multiple demands and stimulants. It is about being ‘comfortable with the uncomfortable’ and if nothing else it is having the right cultural mindset.
It is of course more than culture – although that is where it will start. This will be having your business model design curated in a way that every layer of your organisation, internal and external can operate in a manner that provides speed, certainty and agility in environments that are changing.
This may require a rethink, and acceleration of the technology you use, the processes you deploy and operating rhythms you maintain. This also requires a disciplined focus on what you are not going to do, as much as what it is you are going to do.
2. Sovereign
A sovereign supply chain is one that can be self-governed and controlled, and that mitigates your exposure to external influences whether they be political, environmental or other.
When using the word sovereign, it does imply the concept is at a national level – and this is of course true – we must have a national supply chain that secures our food and medical supplies for instance.
However, the concept also applies to our organisations – there are some products and services that you simply cannot afford to have disrupted by external events, and at the very least if they were to be disrupted you will have sufficient cover to not interrupt your delivery of value.
It will of course be unreasonable to control every element of your global supply chain. It is reasonable though, and important, that you can control the elements that are critical to the value proposition.
To place in practical terms, a supermarket for instance could ill afford to be out of bread, milk and toilet paper – and their supply chains will reflect this. On the other hand, they may be able to manage through a period of disruption to supply of Mexican taco sauce!
What is a certainty is that global supply chains will remain – Global. That much is certain. We will not shift all production back on shore, that would be unreasonable, and impractical.
What will become though is far more strategic on what needs to be off shore, near shore and on shore to maintain a sense of sovereignty over your supply chain.
3. Connected
It is easy to conceptualise a global supply chain in a linear fashion of connecting link with link, to take a product or service from concept to consumption. This is true, however in today’s world the level of connection your global supply chain requires is so much more.
Your global supply chain an eco-system of people, partners, process and systems, and they all need to be connected in a way that allows value to flow – not just linearly but in any direction as your organisation adapts to changing environments and new opportunities.
Connection is more than system and process alignment. It is also a way of being for your organisation, it is the philosophies, culture and behaviours that are demonstrated in all points of your global supply chain whether that be the internal culture of the organisation, the alignment of values with your suppliers or integration with the communities that you operate in.
It is about all in the global supply chain being connected into the purpose, the strategic direction and the objectives you are collectively trying to achieve. Only when you have achieved this values connection can you really turn your hand to connection from a system, process and business model design perspective.
Together is always better than alone. To be together though requires you to be connected.
4. Digital
Robust connectivity is needed to enable faster, more frequent interactions across globally distributed supply chain networks. The seamless flow of information is critical not just simply for the efficient operation of your global supply chain, but to gain valuable commercial insights that create value.
It is the ‘now’ economy and we are all dependent upon information and technology to function.
Digital and data allows for greater connectivity and the ability to manage enormous amounts of data. It enables more opportunities for collaboration with your global supply chain and reducing duplication of effort.
Organisations that can use digital and data to create meaningful insights can create closer relationships with their customers and understand their needs greater. It allows the ability to develop global supply chains that are adaptable and configurable to the changing needs of the market. It also allows for the ability to develop greater efficiencies in operations and drive better service and financial performance
The insights gleaned from digitisation of your supply chain can then inform the technology and innovation that you require to deliver value.
5. Commercial
Your global supply chain needs to remain commercial. This needs to be reflected in the arrangements, operational and financial structures, performance measurements governance, financial controls and strategies you deploy.
As we transition quickly to the new world order, nothing will support you more in that effort than having complete commercial control of your global supply chain. Think of it like a formula one car that is designed to go fast through the engineering of controls into the operation of the car.
Whether it be your customer, your operators, service providers and suppliers or your stakeholders - they need visibility and assurance of the performance of your global supply chain.
They also need you to succeed so that they can succeed. The way you rethink your global supply chain needs to create value, and if you are not creating and distributing that value you will have limited opportunity in a modern world.
Adaptable, sovereign, connected and digital supply chains does not mean that you compromise your commercial imperatives – they are in fact the drivers to enhance them. This is a common mistake many make – they redesign their global supply chains in commercially unsustainable ways that really deliver little end to end, holistic value. The other mistake is of course that organisations focus solely on the efficiency and cost control elements – which of course can become a value dilution exercise if not linked in with strategy and value creation.
What is evident is this rethink is not optional nor is it a ‘nice to have’ – this is an imperative to business survival and relevance.
The cost of not having this rethink may have disastrous, if not fatal, consequences to achieving your organisation’s objectives and perhaps purpose.
Ultimately this will come down to how an organisation sees itself and how aware they are of their risk environment and of their opportunity to create. It will be a function of how close they are to understanding what is truly of value to their customer and also the communities that they operate in. Value remember, is in the eyes of the customer, not the operator.
The good news is that this all spells opportunity for those organisations that can transform their global supply chains into ones that are adaptable, sovereign, connected, digital and commercial. It just requires a rethink.
LOOKING TO rethink your supply chain? REACH OUT.
Our team has extensive global experience leading large scale Supply Chain Transformations from Factory to Customer across multiple industries. We have in depth capabilities around designing and delivering value in the Physical, Financial and Information (Digital) Supply Chain and can help your organisation create competitive advantage and value centred on the global supply chain. From strategy to design and execution. Contact us on whiteark@whiteark.com.au or explore our Supply Chain services here.
Article written by Matthew Webber
What does good leadership mean to you?
There are many resources you can draw on to understand what makes a good leader but you will find there are many varied opinions. In my experience, I have learnt the most from the poor leaders I have worked for as they have really emphasised what not to do if you want to be a good leader. Below is a list of what to avoid if you want to make a good leader...
There are many resources you can draw on to understand what makes a good leader but you will find there are many varied opinions. In my experience, I have learnt the most from the poor leaders I have worked for as they have really emphasised what not to do if you want to be a good leader.
Below is a list of what to avoid if you want to make a good leader:
A leader who is self serving
A leader who doesn't listen
A leader who wants yes people that will not challenge their ideas
A leader who doesn't care about your career development
A leader that doesn't have your back
A leader that changes their mind
A leader who is more interested in being political than driving an outcome
A leader that doesn't communicate
A leader that doesn't practice what they preach
A leader that thinks they are the smartest person in the room
A leader that is more interested in being popular than making good commercial decisions for the business
A leader that is disconnected from the customer and consumer
Being a leader is hard, lonely and requires you to make difficult decisions for the good of the company, not individuals or divisions but the collective good. You don't always get it right, but you are focused on what matters most (clear priorities) and set the organisation up for success.
Being led by a good leader is life changing as you feel supported and you do your best work. The power of a team that is being led by an amazing leader that empowers, encourages and challenges is beyond belief.
As a leader you have a very important job - to coach, mentor, guide and set a vision for your employees - to get the best out of everyone. The power of getting people to run in the right direction, is unbelievable.
Everyone has worked for a bad leader and I hope you've had the opportunity to work for a good leader, regardless, make sure you proactively shape the leader you want to be knowing that your leadership will have a lasting impact on the company and your employees. Make sure it's a good legacy, one you will be proud of.
The Top Three
If you want to be an amazing leader there are three key things to consider:
Make decisions for the good of the business - hard decisions that will ensure the business achieves the outcomes
Treat people with respect and kindness and take care of people - don't underestimate kindness
Always listen - understand challenges and people ideas
Determine what kind of leader you want to be and be proactive in creating this. Start by having a think about what good leadership means to you? Join the conversation online by Searching for Whiteark on LinkedIn. Whiteark chat with a chief every week to learn from leaders in their field so if you want to learn from experienced leaders tune into The Chiefs podcast series.
“Wherever you are, be all there.”
At Whiteark we have hands on practical experience to help CFOs navigate and set their company up for success, whatever is the challenge. Please reach out for a no obligation conversation.
Whiteark is not your average consulting firm, we have first-hand experience in delivering transformation programs for private equity and other organisations with a focus on people just as much as financial outcomes.
We understand that execution is the hardest part, and so we roll our sleeves up and work with you to ensure we can deliver the required outcomes for the business. Our co-founders have a combined experience of over 50 years’ working as Executives in organisations delivering outcomes for shareholders. Reach out for a no obligation conversation on how we can help you. Contact us on whiteark@whiteark.com.au
Data Strategy
Data is a valuable resource but often businesses find it challenging to unlock that value due to the fact that copious amounts of data clouds the space. Not to mention the challenges that come with collecting, organising and activating it. Decision-Ready Data is critical to informing business decisions and strategic direction.
Data is a valuable resource but often businesses find it challenging to unlock that value, due to the sheer amount of data available - as well as the challenges which come with collecting, organising, interpreting and activating it.
Research shows that 54% of organisations still struggle to provide stakeholders with data that can inform their decisions.
A data strategy can assist businesses with overcoming these challenges and accessing the value of their data while efficiently using their resources.
DATA STRATEGY
Unlocks the power of your data
Helps you to harness the volume of data, which is always increasing
Improves data management across the entire company
Assists with efficient resource allocation
Decision-Ready Data
Decision-Ready Data is critical to informing business decisions and deciding on strategic direction. However, research shows that although organisations have been building analytics and insight capabilities, over 54% of organisations still struggle to provide stakeholders with data that can actually inform their decisions.
Common Data Quality Challenges include:
Accuracy, comprehensiveness, completeness, centralisation, source of truth.
Common People, Process & Technology Limitations include:
Process design, platform/technology, capacity, agility/execution speed, lack of automation, analytical capability, organisation alignment, prioritisation.
A data strategy can assist businesses with overcoming these challenges and access the value of their data while efficiently using their resources.
Importance of having a Data Strategy
Data Strategy Helps Unlock the Power of Data
Volume of Data Is Increasing - 90% of the data in the world became available in the last 3 years.
Data Strategy Improves Data Management Across the Entire Organisation
Data Strategy Helps You Use Resources Efficiently
Data strategy is a central, integrated concept that articulates how data will enable and inspire business strategy.
Essential Data Strategy Principles
Integrating Data and Eliminating Silos
Makes data more accessible and fosters collaboration between different departments
Helps people get data more efficiently and can enable new data-driven projects
Streamlining Data Collection and Sharing
Having established procedures means you can collect more data more efficiently, and that the data you collect will likely be higher-quality
It also keeps your information consistent and well-organised, which makes it easier to use and helps you derive value from it
Setting Clear Goals and Objectives for Data Management and Use
Your goals will drive your data strategy and activities and help you improve how you handle data
Making Data More Visible and Accessible
It’s crucial that you find a way to store data so people can quickly find and access the information they need without having to create copies of it themselves.
Making Data More Actionable and Easily Shared
Putting your data in a consistent, usable format will reduce the number of steps employees need to take before they can use it and make it easy to share within the company
Establishing Clear Processes for Data Management – Data Governance Model
Data governance refers to setting rules and standards for how individuals and groups within an organisation manage data. The goal of data governance is to make data easier to access, use and share to achieve broach broader business goals
The key goals of a governance model should be clearly defined to ensure success:
⊹ Avoid siloed decision-making
⊹ Use synergies between business units to improve data assets
⊹ Provide business units with support and resources to prioritise data challenges resolution
⊹ Support the management of key initiatives across business units
Establishing Guidelines for Data Analysis and Application
Define guidelines for how employees should analyse and use data