Business Automation and Software Blog

For the longest time, companies thought efficiency was the end-all and be-all, especially when it came to supply chain management. And who could blame them? After all, an efficient supply chain could be measured. It might save money.

However, there’s something much more important than efficiency: strategy. Without a competitive supply chain management strategy, you may as well forget about efficiency. It does you no good to have just-in-time delivery, for example, if your suppliers are in areas affected by geopolitical upheaval, a major weather event, or other shipping disruptions.

Gartner has recently released its annual Supply Chain Top 25 list and top performers include well-known companies like Bristol-Myers, General Mills, Johnson & Johnson, Nestle, and 3M. What do all of them have in common? All these companies were recognized as leaders in supply chain management. Gartner recognized them for best practices and emerging trends.

Businesses are used to managing known supply chain risks. Transportation and supplier issues are something they can predict will happen at some point and take steps to mitigate their impact. Other risks, such as a global pandemic or a natural disaster, are the type of low-probability, high-impact events that companies likely did not foresee. Many did not plan for them and don’t know how to manage their supply chains faced with the ongoing pandemic threat, natural disasters, and disruptions that have taken place globally. Supply chain management is more challenging than ever in the face of these events.

This year, more than ever, supply chain management has experienced seismic shifts and changes. From economic pressures to trade disputes to the global health crisis, change in 2020 has been unpredictable at best. In addition, some problems have compounded as various companies shut their doors for COVID, and others shut their doors for good.