Analyst Insight: Supply chain transformation requires a business-aligned supply chain strategy and change management prowess. At its core, it is about change. Gartner defines supply chain transformation as a step function change in supply chain performance that is sustained for more than one year. Data from 30 in-depth interviews, hundreds of inquiries and interactions with Gartner clients during the past 18 months revealed the key drivers of supply chain transformations. - Michael Dominy, Research Director, Gartner Supply Chain Leaders
Sustainability has for many years been growing in importance, but until recently was largely seen as a sideshow meant to burnish the image of a company and its brands. Early efforts by supply chain leaders to integrate concepts of sustainability into their operations were often meant to test notions of cost savings that align naturally with reduced environmental impacts. The results are beginning to show. - Kevin O'Marah, Chief Content Officer and Head of Research, SCM World
Analyst Insight: Customer relationship management evolved from contact management, a sales-focused process for suppliers. In many cases, CRM must be rethought; it should be stood on its head, starting with customers' needs and working back to suppliers. Because most companies lack sufficient resources to satisfy every customer, this approach initially leads to frustration. But "every customer totally thrilled" is the wrong objective. To the contrary, it's critical to focus: to "wow" the most profitable customers, and serve them perfectly. Supply chain responses must match segmented and targeted relationships to build satisfaction and profit. - Robert Sabath, Principal Essentialist SCM, Trissential
Today's complex and connected supply chain translates into quick communication with partners. At the same time, it creates huge opportunity for data leakage and security issues that need to be addressed proactively in supply chain systems.
U.S. hospitals spend tens of billions of dollars annually on high-tech surgical implants. But the supply chain for the devices is anything but high-tech. And that drives up costs both for hospitals and implant makers.
Applying lean principles to management, rather than just operations, can help large organizations re-imagine how they work and unlock value through continuous improvement.
Analyst Insight: If the wheels on your vehicle are out of alignment, you're in for a rough and inefficient ride. The same holds true for businesses. Alignment, especially in strategic relationships, gets businesses beyond the initial "yes" that sets a deal in motion"”it aligns the participants throughout the life of the deal, turning it into a smooth and powerful relationship. - Kate Vitasek, Faculty, University of Tennessee's Center for Executive Education, and Founder, Supply Chain Visions
Analyst Insight: Theoretically, supply chain transformations deliver a different set of capabilities and outcomes that customers recognize. The reality is that a transformation may simply be a radical or rapid change to the supply chain organization and operations in response to changes in the marketplace. It could be a dramatic reduction in cost or improvement in service to remain competitive. In other words, the outcomes are not necessarily different, just better than the prior state. - Michael Dominy, Research Director, Gartner
GS1 US has developed the GS1 US Data Hub. The new tool allows retailers, e-tailers, data pools, application developers and other providers to access detailed information associated with GS1 company prefixes.
With the advent of big data, faster computing and intuitive analysis tools, the promise of analytics has generated a renewed focus on improving operations through data-driven decisions. For supply chain organizations in particular, it is a powerful ally in driving cost reduction strategies and service level improvements. From public sector entities like Lincolnshire, which identified £24m in procurement savings, to retail giants like Tesco, which reduced £50m in excess inventory, organizations across the globe are achieving substantial impact by applying analytics to their operations. But what about emerging markets?