September - 2016 - issue > CXO INSIGHT

TAKING YOUR SUPPLY CHAIN TO THE CLOUD

Abir Thakurta

VP-Global Supply Chain-Havertys Furniture

Tuesday, August 30, 2016

Forward

There used to be a time when supply chains were simple, focused on planning, local manufacturing and delivering product to market. Then came outsourced manufacturing and globalization. Cost savings was the primary driver and lean principles became the key. Supply chains developed a value stream that eliminated waste, time, and ensured a smooth and predictable output.

Today, times are different. In today's global digitally disruptive economy, where the basics of business are being turned on their heads (the world's largest taxi company owns no taxis, the world's most valuable retailer has no storefront, the world's biggest bed and breakfast does not own any rooms... the list goes on) the one thing that stands tall is a company's ability to execute in newer circumstances. Today, companies that can react to customer demand faster in the supply chain, seamlessly across various channels, and deliver a delightful experience can win the admiration (and possibly loyalty) of increasingly demanding customers. This is particularly true of markets that are getting disrupted and becoming less predictable.

Ask any supply chain executive, and chances are they will tell you, that today nothing is more important for an organization than supply chain execution. In a world spurred by a rising tide of global uncertainty and business complexity, supply chains have to fundamentally change the way they operate;

- Accept that uncertainty is inherent
- Shift focus from planning to execution
- Manage demand volatility by chasing demand
- Support a high product variety and customizations