Has Supply chain disruption increased costs and complexity for big businesses ?

24 août 2022
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By Raffaele Muscetta, Supply Chain Management Master Director

During several of our recent Master Classes, where we invite Supply Chain Management Directors as well as CPOs, a recurrent subject that comes in different ways and forms, is the question of how to gauge the level of complexity new supply and demand chains are being shaped after the last few years of disruption and changes…. Industrial-based companies have been forced to move, change, redesign and adapt to new ways to source, make and deliver their products… some others have not taken the necessary steps on time to adjust and there are clear signs of margin erosion, even in inflationary times…

Re-localization of suppliers and sources was initiated, mainly due to political decisions, before C19 and other crises hit the different economies around the world.. so, the adaptation to new value chains was initiated a while ago.. however, a recent report shows that several areas, among them the most obvious ones: lead times, working capital, and inventory management, cost increases have been at the center of any Supply Chain Management organization. Now, one area that pops up as becoming extremely critical is the one related to talent management, new capabilities, and the overall availability of qualified human resources. Needs in human resources in Supply Chain have exponentially grown due to the recent crises.. as stated before, SCM organizations that have proven to be robust and well suited, have been able to wave and adapt to new challenges faster… specialized and focus training in supply chain management has been clearly demanded from Supply Chain Management Officers and Directors around the world. The need for these resources will continue to be under tension during the coming next years.

Business schools providing focused training on Supply Chain Management (Master’s degree or BAC+5 in France) will be required to prepare and train resources that will bring both: the hardcore knowledge of an end-to-end Supply Chain Management training through business cases, exchange via Master Classes and webinars with leaders in the market and finally to blend the practical training in companies and classrooms through the internships (contrat d’alternance in France), but also to prepare the new leaders through robust mentoring, team building techniques which will develop the soft skills required for an Supply Chain Management Leader.

The present and the future Supply Chain Managers are brilliant and rich in opportunities and experiences.