When Toys ‘R’ Us secured a $3.1bn bankruptcy loan in September, toy makers were reassured they would be paid for goods delivered to the company as it tried to emerge from Chapter 11.
Across industries, companies large and small are facing similar supply chain challenges: managing an overwhelming availability of data; meeting the growing demands of globalization; and hopping the artificial-intelligence and machine-learning bandwagon.
We’re now awash in “crypto” hype — cryptocurrencies like bitcoin and fundraising efforts like initial coin offerings. For every venture capitalist or technical expert, there’s a half-dozen hype men and fly-by-night startups making the entire space look like a 21st-century version of the Amsterdam tulip mania.
Advanced supply chains of today connect buyers and sellers in a digital manner for their order and shipments. Often the benefits of rigorous procurement policies between trading partners are ignored with pricing discounts, service levels and rigorous procurement protocols disregarded in an effort to just "get the business done." The buyer may get the raw materials ordered, but the products aren't of the typical quality at the right price. Communication and collaboration are lacking. -David Cahn, Director Product Marketing, Elemica
Slowing growth, intensifying competition and rapidly changing consumer preference are creating rising cost pressures, driving major focus to reduce supply chain costs across industries. However, companies are stuck in an endless death spiral of cost cutting with little impact to the bottom line. Leading companies are breaking this cycle with ZBSC (zero-based supply chain)— a way to drive profitability by looking forward, continually improving bottom line results in a rapidly changing world. –Gary Hanifan, Managing Director, Accenture Strategy, Supply Chain & Operations Strategy
While it's known that supply chain finance (SCF) provides cash flow predictability and control to buyers, it is less known that suppliers benefit from early payment of receivables with cash flow improvement and economic security. From investment grade suppliers to those on the tail end, suppliers of all sizes have seen the benefit of SCF realized through visibility via technology, payment flexibility and growing their own working capital to invest in growing their business. -Nathan Feather, CFO, PrimeRevenue
GE Renewable Resources said it’ll spend as much as $400m over the next few years to build an offshore wind turbine almost 100 meters taller than the Washington Monument.
Sales and operations planning. So important, yet success is so elusive. While many companies approach S&OP as a technology implementation, success requires a focus on 60 percent culture, 30 percent process and 10 percent technology. Companies cannot get to success without technology, but it cannot be the primary focus. A successful implementation can improve agility by 25 percent to 35 percent. -Lora Cecere, Founder, Supply Chain Insights