Supply Chain Management in 2030: Future Trends, Changes, and Predictions

Summary

The video provides an insightful exploration into the dynamic future of supply chain management and the trends that are set to transform the industry by 2030. Eric Kimberling, CEO of Third Stage Consulting, discusses how the COVID-19 pandemic has reshaped supply chain strategies and emphasizes the need for diversification of suppliers and risk management. Kimberling highlights the importance of data integration, potential government regulation, and the career opportunities emerging in supply chain management. He also touches on the shift from just-in-time inventory to stockpiling, and the role of advanced technologies and ERP systems in navigating these changes.

Highlights

• Supply chains are transforming post-2020 due to pandemics and geopolitical shifts. 🇨🇳
• Over-reliance on specific regions for materials is risky and must be mitigated. 🌐
• Data integration is crucial for predicting and managing supply chain disruptions. 📈
• Career prospects in supply chain management are on the rise. 📈
• Regulations may tighten on essential goods and supply chains. 🔒
• Stockpiling can be tricky, affecting cash flow and inventory management. 💸
• ERP and BI technologies are vital in addressing supply chain challenges. 🖥️

Key Takeaways

• Supply chain management is evolving and facing new challenges due to global events. 🌍
• Diversifying supplier strategies and risk management are critical. 🔄
• Data-driven decision-making is key for future success. 📊
• Supply chain careers are booming and offer significant opportunities. 🚀
• Governments may impose more regulations on critical supply items. ⚖️
• Stockpiling inventory is back, but it presents new challenges. 📦
• Investing in advanced ERP and business intelligence tools is essential. 💡

Overview

Supply chain management is undergoing significant changes as the world grapples with the aftermath of the pandemic and geopolitical upheavals. The over-reliance on specific regions for procurement has necessitated a diversification of supplier strategies to reduce risk and enhance resilience. This shift demands that organizations not only reconsider geographic dependencies but also integrate diverse suppliers and logistics partners to mitigate concentrated risks.

Data has become the backbone of modern supply chain management, allowing companies to navigate challenges with greater foresight. By integrating internal data with external economic and geopolitical indicators, businesses can anticipate disruptions and make informed decisions. Technologies like ERP systems and business intelligence tools are indispensable in enabling companies to synthesize data across various touchpoints efficiently and effectively.

The complexity of today's supply chain landscape is simultaneously a fertile ground for career growth and potentially tighter regulatory scrutinies. The demand for professionals who can merge technological acumen with supply chain expertise is skyrocketing. Meanwhile, as governments eye the regulation of critical supply chains, businesses should proactively enhance their systems and processes to stay ahead of potential legislative changes.

Chapters

• 00:00 - 00:30: Introduction and Overview: Future of Supply Chain Management The chapter 'Introduction and Overview: Future of Supply Chain Management' discusses the evolving nature of supply chains. The speaker, Eric Kimberling, who is the CEO of Third Stage Consulting, introduces the topic by highlighting how supply chains have changed over the years and continue to evolve. He promises to delve into the future of supply chain management, emphasizing the role of digital and business transformations in achieving success.
• 00:30 - 01:00: Impact of the Pandemic on Supply Chains The chapter 'Impact of the Pandemic on Supply Chains' discusses how the COVID-19 pandemic has significantly disrupted supply chain management globally. It highlights the exposure of various bottlenecks and emphasizes that traditional supply chains are inadequate for future demands. The chapter promises to explore five major trends that are pivotal for navigating supply chain management in the current decade and beyond.
• 01:00 - 02:00: Supplier Strategy Changes In the chapter titled 'Supplier Strategy Changes', the discussion revolves around the necessity for organizations to adapt their supplier strategies in response to the geopolitical uncertainties of the 2020s. The chapter highlights how the pandemic exposed an overdependence on certain regions that proved unreliable due to shutdowns and geopolitical issues. As a result, businesses are encouraged to reconsider their supplier strategies, focusing on reducing dependency and enhancing resilience against similar future disruptions.
• 02:00 - 03:00: Diversifying Supplier Risk The chapter focuses on the importance of diversifying risk within supply chain and supplier networks. It highlights how many organizations were overly dependent on sourcing raw materials, parts, and products from regions such as China and Asia Pacific. During the pandemic, when these regions faced strict lockdowns, the supply chain was severely disrupted, underlining the risks of reliance on a limited number of countries. The chapter emphasizes the need for organizations to reduce dependency on a small number of countries to ensure a more resilient and reliable supply network.
• 03:00 - 04:30: Leveraging Data and Technology in Supply Chains This chapter discusses the importance of diversifying supplier risk in supply chains. It highlights the need for organizations to not only consider geographic diversity but also diversify types of suppliers to avoid concentrated risk. This diversification applies to both sourcing materials and logistics, such as transportation and 3PL providers. The chapter encourages rethinking strategies to mitigate these risks.
• 04:30 - 06:00: Opportunities and Careers in Supply Chain Management The chapter discusses the transformations in supply chain management brought about by the unpredictable nature of the supply chains post-2020. It highlights the necessity for organizations to rethink, re-prioritize, and diversify their supplier networks due to these changes. With the accelerated pace of global changes in the 2020s, companies are compelled to adapt and reassess their strategies in engaging with suppliers.
• 06:00 - 07:30: Government Regulation and Supply Chain The chapter discusses the role of government regulation in supply chains. It emphasizes the importance of data in understanding and managing these systems, highlighting how data can be used to improve decision-making and anticipate future disruptions. The chapter reflects on the complexity of supply chains, from raw material production to product distribution.
• 07:30 - 10:00: Shift Back to Stockpiling Inventory The chapter discusses the importance of organizations being prepared for the future by integrating systems and data to track information effectively. This capability allows companies to anticipate demand and address supply chain challenges proactively. The focus is not only on internal supply chain data but also on considering economic and external factors that may influence supply and demand.
• 10:00 - 12:30: Technological Solutions for Supply Chain Challenges The chapter titled 'Technological Solutions for Supply Chain Challenges' discusses the critical role of technology in modern supply chain management. It addresses how various external factors such as economic growth, recession, geopolitical dynamics, and the insolvency of suppliers or logistics providers can impact the supply chain. The chapter emphasizes the importance of having the right technology to gather data points, which are essential for making informed decisions. Integrating technology with both internal and external knowledge sources can significantly enhance decision-making and supply chain management.
• 12:30 - 13:30: Conclusion and Additional Resources Chapter Title: Conclusion and Additional Resources The chapter discusses emerging opportunities in the field of supply chain management due to ongoing disruptions and changes in technology. It highlights the growing demand for expertise in supply chain management, emphasizing the potential career growth in this area. The chapter urges viewers to consider the technological advancements that can aid in efficiently managing supply chains.

Supply Chain Management in 2030: Future Trends, Changes, and Predictions Transcription

• 00:00 - 00:30 supply chains of the 2020s look a lot different than they have in the past and they're going to look a lot different in the future as well so what i want to do today is talk about the future of supply chain management as we know it today [Music] my name is eric kimberling i'm the ceo of third stage consulting we're an independent consulting firm that helps clients throughout the world reach the third stage of success with their digital and business transformation initiatives
• 00:30 - 01:00 and supply chain management has been rocked over the last few years since the pandemic it's exposed a lot of bottlenecks and disruptions and supply chains throughout the world and it's really proven that supply chains of the past are no longer going to be suitable for the needs of the future so what i want to do today is talk about the five major trends that you should be aware of as you navigate the world of supply chain management in the 2020s and beyond [Music] one thing that the pandemic of 2020 and
• 01:00 - 01:30 some of the geopolitical uncertainties of the 2020s have taught us is that supplier strategies of the past are no longer going to work now or in the future and if you look at what happened during the pandemic for example we saw that we had an overdependency on certain parts of the world that were no longer reliable as they had been in the past because of shutdowns and other pandemic related issues and geopolitical issues so what that has done is it's forced organizations to rethink their supplier strategies and really focus on
• 01:30 - 02:00 diversifying the concentration of risk within their supply chain networks and their supplier networks in particular so for example many organizations found that they were procuring raw materials and parts and products from china or in asia pacific and when the pandemic hit china and asia pacific had a lot more stringent lockdowns in other parts of the world and what that did is it disrupted the supply chain so in other words we were so dependent on a small handful of countries that now suddenly weren't dependable due to factors
• 02:00 - 02:30 outside of our control and so what that's doing is it's forcing organizations to think about how they can diversify supplier risk not just geographically but also looking at other diversity of suppliers and making sure that they don't have too much concentrated risk on any one or more suppliers and this is not only for where you procure materials from but it's also looking at transportation on logistics for example do we have too much risk riding on one transportation or logistics provider or one 3pl provider do we need to rethink our strategies for
• 02:30 - 03:00 how we leverage some of these providers those are all questions that we didn't really have to ask prior to 2020 because supply chains were a lot more predictable and a lot more stable than they are now so in order to navigate the 2020s and beyond organizations now are being forced to rethink their supplier network and to re-prioritize and diversify their supplier networks as well given the fact that the world seems to be changing at an accelerated pace here in the 2020s is the fact that now we've got to also look
• 03:00 - 03:30 at all the data that we have throughout our supply chain both internally and externally and we have to figure out how we can use that data to make better decisions and to better anticipate future trends and things that might disrupt our supply chains [Music] so when you think about a supply chain and all the complex business processes and different touch points that happen from the time a raw material is produced until the finished product is produced and it's ultimately distributed to your
• 03:30 - 04:00 end customers there's a lot of stuff that can go wrong there and there's a lot of different data points that are being captured along the way and organizations that are prepared for the future have ways of tying together their systems and their data to track that information and to make better use of that information so that they can anticipate demand and be more proactive about fixing some of the challenges that organizations are facing with their supply chains today and it's not just our internal supply chain that we need to be focusing on gathering data from it's also looking at economic and external factors so things like economic
• 04:00 - 04:30 growth or economic shrinkage or recessions in different parts of the world or geopolitical dynamics or the insolvency of certain suppliers or logistics providers those are all things that you need to have data points that can inform your supply chain managers to make better decisions and the only way to do that is to have the right technologies that integrate with other providers that can provide both that internal and external knowledge to help you make better decisions and help you manage your supply chain better now stay
• 04:30 - 05:00 tuned to the end of this video because i'm going to talk more about specific technology options that might help you better manage your supply chains in the future [Music] along with all this disruption and change comes opportunity and anytime there's disruption and change in the world that creates opportunities for new career fields it increases popularity of certain career fields and that's the case with supply chain management supply chain management is a very hot area to be in right now especially if you can combine
• 05:00 - 05:30 a knowledge of supply chain management with a knowledge of technology and data if you can combine that business and technology skill set and background that's a very powerful combination and people that understand how to manage supply chains how to improve supply chains how to do business process improvement deploy new technologies to make their supply chains better those people are going to be in really high demand for years to come and i think this is something that isn't just a temporary problem or opportunity i think this is something that's going to continue for decades into the future as organizations really try to continue
• 05:30 - 06:00 this migration to the new post 2020 supply chain management world that we're in so despite all the turmoil and all the problems that i've talked about as it relates to supply chain management that just leads to more opportunity and potential growth when it comes to your career another trend to be aware of is that in the not too distant future i think that governments throughout the world are going to start to regulate supply chains more intensively
• 06:00 - 06:30 when you think about mission critical or essential items things like baby food or energy or food in general those are examples of really critical items that people need and when supply chains are getting disrupted to the point where people can't get food they can't get energy they can't get shelter whatever the case may be that's when government tends to step in and regulate now whether or not you think that's a good thing or a bad thing that's a topic or a discussion for a whole another time but the reality is is that i think governments throughout the world they're going to start to clamp down on supply
• 06:30 - 07:00 chains and do their part or try to do their part on regulating and putting in standards and service level agreements for what constitutes an acceptable supply chain especially in critical areas like food beverage energy things of that nature so one of the things you can do to get ahead of potential government regulation is to fix your supply chain to improve business processes to provide better data to put better systems in place it's something that's going to help your business anyway and help you be more profitable but it's also getting ahead
• 07:00 - 07:30 of potential regulation which may force you to make these changes in a shorter amount of time than if you were to start now now in the relatively short amount of time we've had since the pandemic happened in 2020 we've seen that organizations have responded to the supply chain disruptions by stockpiling inventory they're kind of going back to an old model that worked decades ago but we moved away from in the 90s and early 2000s when we moved to more of a just-in-time
• 07:30 - 08:00 inventory management approach and that's been a trend that had been developing for decades but now we're seeing that that just-in-time inventory management approach isn't as effective in times of turbulence and unpredictability within supply chains so organizations are responding by letting the pendulum swing back the other way now to where we're stockpiling inventory making sure we have enough inventory on hand now that's creating a few different problems one of which is the fact that now it's getting harder to match inventory to demand because we're stockpiling
• 08:00 - 08:30 oftentimes organizations are either over stocking inventory that they're not going to need or that's wasted inventory or they're underestimating customer demand and they're still not able to meet demand so that's one problem but one of the bigger challenges that organizations are having is the fact that the stockpile of inventory is causing organizations to have more cash and capital tied up in their supply chains so in the past they had a certain amount of cash tied up in the supply chain but now they're having to increase that because they've got a stockpile inventory they have to place
• 08:30 - 09:00 orders earlier they might have to pay for products earlier before they receive those products and it's going to take longer for them to receive those products so everything's getting elongated which means more cash is going into supply chains so what's going to happen is eventually organizations and cfos of organizations are going to clamp down on that they're going to try to tighten up the cash flow and the capital investments that they've made within their supply chains and that's going to create a conflict or a potential tension between cash flow management and adequately satisfying customer demand so
• 09:00 - 09:30 look for that trend to be something that doesn't get settled anytime soon but back to my earlier points about having the right data and systems in place will allow you to navigate that better if you do that effectively [Music] so one of the best ways to navigate some of the challenges i've talked about here in the supply chain management space is to deploy supply chain systems that can help you manage these realities more carefully so there's a lot of really good supply
• 09:30 - 10:00 chain management focus systems out there that help automate and integrate the entire supply chain from procurement all the way through manufacturing production warehouse management and ultimately distribution to your customers and these supply chain management systems can be very effective and very focused on solving the immediate problems that supply chain managers face you also have enterprise resource planning systems or erp systems software like sap oracle microsoft dynamics these big erp systems that do supply chain
• 10:00 - 10:30 management but they also integrate with financials and customer service and sales and hr those sorts of things so erp systems are another type of technology that can be deployed and then finally another useful technology in today's day and age and in the future of supply chain management is going to be business intelligence so having business intelligence and analytical tools that allow you to take all that data that i mentioned before and allows you to provide better insights and understanding into what's happening in your supply chain and
• 10:30 - 11:00 allows you to more proactively address and mitigate potential supply chain disruptions in bottlenecks so for more information on some of these potential technology options i encourage you to download our digital transformation report that digital transformation report has top 10 rankings and independent reviews of different supply chain management systems erp systems business intelligence systems and even other types of technologies unrelated to supply chain management so i encourage you to download that guide to digital transformation in the link below i've
• 11:00 - 11:30 also included links to other resources that i think will help you understand supply chain management and help you navigate your supply chain management transformation more effectively so check out some of those resources below so if you found this information useful and hope you have a great day