Although technology is very important, business process management is more critical to running a successful supply chain. “Technology is subservient to the process,” says Leo Salomons, head of value engineering for the Americas at Mavim, which makes business process management software. “There’s a balance that needs to be struck.”

Initiatives for change might come from the IT organization, for example, pinpointing capabilities that are required from a technological perspective, Salomons says. “But at the end of the day, it's all about how it serves the process.”

This becomes particularly relevant when companies are seeking transformation. Challenges include undertaking change while continuing to meet your service levels — what’s termed as running the shop while you're changing the shop. An organization juggling multiple demands needs to keep an eye on what Salomons describes as a “North Star” — a fixed point that helps guide all goals and efforts.

Another challenge is simply committing to change. “Oftentimes, there is an indicator that change is required,” says Salomons. “However, there's not the full realization of what it entails to actually achieve those goals.” Failing to bake this into business processes leads to transformation initiatives being aborted, or not achieving the intended result. 

There’s a real urgency to recognize the need for better business process management, and the benefits of digitization, because the speed of change in the supply chain industry has accelerated, Salomons says. Another issue hampering transformation is adoption of technology — either going too slow, or choosing the wrong technology. Lastly, labor shortages and a looming economic downturn mean companies are seeking efficiencies and cost savings in new and more widespread ways.