This presentation provides a brief overview of where supply chains have been, their current status, and then dives deep into the incredible role that supply chains will play going forward.
1. Tara Dwyer
Webinar Coordinator,
Supply Chain Brief
with James A. Tompkins, Ph.D.
The Supply Chain & Logistics
Journey:
Humble Beginnings,
Troubled Present,
Amazing Future
Wednesday, September 14th, 2022
12:30pm PDT, 3:30pm EDT, 8:30pm BST
Founder, Tompkins Ventures,
Co-Founder, Tompkins Leadership
Jim Tompkins,
Ph.D.
Tompkins Ventures,
Tompkins Leadership
2. Avetta provides a cloud-based supply chain risk management and
commercial marketplace platform. Our global solution is uniquely
designed to connect the world’s leading organizations with
qualified suppliers, driving sustainable growth. We build
trustworthy bonds through responsive technology and human
insight. Our process is collaborative. Our global reach is
complemented by our local expertise. Hundreds of global
organizations depend on Avetta to align their supply chains to
sustainable business practices, worldwide. Discover more at
avetta.com.
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5. Humble Beginnings
• Logistics:
o Pre-1970: Military term, not used by industry
o 1981-1990: Term covered inbound and outbound warehousing and
outbound transportation.
o 1981-1990: Term encapsulated inbound and outbound warehouse
transportation.
o 1991-2005: Logistics was a necessary evil, not a success factor.
o 2006-2020: Leadership saw logistics, particularly transportation, as a
significant cost that required internal expertise or outsourced
competencies.
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6. Humble Beginnings
• Supply Chain:
o 1991-2005: Leadership viewed supply chain as an ever-increasing coast.
Goal was reducing cost.
o 2006-2020: A growing awareness that supply chain not only involved
costs but involved customer experience. The customer-centric supply
chain could reduce costs and increase revenue.
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7. Troubled Present
• Logistics: 2020-present: COVID-19 Disruption skyrocketed transportation costs
way beyond budgets. Chaos reigned.
• Supply Chain:
o March-May 2020: The “man on the street” discovered supply chain, which went
from an unknown field to a critical requirement for business success. Supply
chain had respect.
o June 2020-present: Product shortages, inventory levels and costs were out of
control. Leaders started calling for resilience.
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8. Amazing Future
• The Troubled Present begets the necessity of businesses to rethink their approach
to Logistics and Supply Chain.
• It must be understood that Disruption is the new normal.
• The future will depart from the past, not continue it.
• Disruption often leads to Tipping Points that lead to Paradigm Shifts.
• Paradigm Shifts require new leadership philosophy.
• The required new leadership philosophy is Insightful Leadership.
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9. Insight, Foresight and Insightful Leadership: The Surfing
Analogy
• GET IN THE WATER WITH YOUR SURFBOARD.
• FORESIGHT: Ability to predict which wave will be the
right one to ride
• INSIGHT: Understanding how the wave will break and
how to innovate to maximize the success of your ride
• INSIGHTFUL LEADERSHIP: Action to get in front of
the wave and harness the power of the wave
• PADDLE BACK OUT WITH GREATER FORESIGHT.
This Photo by Unknown Author is licensed under CC BY-SA
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10. 3-Step Process of Insightful Leadership
• Step 0: Have deep experience that begets foresight
• Step 1: Gaining insights
• Step 2: Harnessing the power of insights
• Step 3: Creating success from Insightful Leadership
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11. What Can You Gain Through Insightful Leadership
• Which Disruption(s) will crest into a Tipping Point, leading to a Paradigm
Shift
• Perpetual Disruption means perpetual opportunity.
• Innovations - the actions required to take advantage of these endless
opportunities
• Optionality:
o Preparing for the next disruption
o Replaces optimality
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12. Disruptions- Tipping Points- Paradigm Shifts of the Last 32
Months
Disruptions Tipping Points Paradigm Shifts
COVID-19 Lockdowns How we work and live
Digital Innovation eCommerce explosion How we buy goods/services
Global connectivity Broken supply chains Need for resilient supply chains
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13. Amazing Future: Paradigm Shift On How We Work and Live
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• I quit
• Work from home
• Work/life balance
• Culture
• Major leadership challenges
14. Amazing Future: Paradigm Shift for eCommerce Explosion
14
• Distributed logistics
o Forward-deploys inventory closer to customers
o Smaller fulfillment centers near population centers, fed by larger
distribution centers in rural areas
o Includes Micro fulfillment centers
o Automation due to labor shortages
• Final mile challenges
15. Amazing Future: Paradigm Shift for Resilient Supply Chains
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Digital Supply Networks
• End-to-End
• Planning/Execution
• Eliminate latency with real-time information
• Single version of the truth
• Use artificial intelligence and machine learning
• Autonomously resolve many problems
16. The Russian Invasion of Ukraine: An Example
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• Need foresight and insight
• Foresight: Who will win?
o How am I able to have an opinion? Because I believe winning companies,
universities, countries, etc. have a lot in common.
o I believe winners are defined by their capabilities around (in alphabetical
order):
• Capital
• Facilities
• Leadership
• Logistics
• Technology
This Photo by Unknown Author is licensed under CC BY-NC-ND
17. The Russian Invasion of Ukraine: An Example
17
TOPIC RUSSIA WINS UKRAINE WINS
Capital X
Facilities X
Leadership X
Logistics X
Technology X
• Foresight: Who will win?
This Photo by Unknown Author is licensed under CC BY-ND
18. The Russian Invasion of Ukraine: An Example
18
• Insight: Major implications across many mega-topics.
o The future of Russia, Russian allies, Eastern Europe, NATO, Taiwan/China. For
others to decide.
o Fertilizer & global food crisis, energy, metals & inflation. For others to decide.
o Supply chain
• Sourcing to friendly nations, sourcing closer to home & reshoring essential
products/materials
• Ongoing growth of digitization, AI/ML and smart solutions
• Increased acceptance of digital supply networks and network collaboration
• Increased utilization of automation, robotics and drones
• Increased research, development and entrepreneurship across industries
19. The Russian Invasion of Ukraine: An Example
19
• Leadership: Increased emphasis on:
o Culture, meaningful work, recognition & retention
o Employee growth, adult learning, mentoring & coaching
o Teamwork, collaboration & communications
o Career/personal balance, hybrid work & flexible work
o Innovation, entrepreneurship & technology
o Embracing diversity & focus on inclusiveness
o Wellness & mental health
o Insightful leadership
20. Path Forward: Embrace Insightful Leadership
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Innovation
Entrepreneurship
Disruptions,Tipping Points,
Paradigm Shifts!
Too Risky! Too Different!
Foresight
Insight
Trial,Error,Refinement
Validation
Paradigm Shift
Begets Success
ESTABLISHED FIRM
RiskAverse
Disruptions,Tipping Points,
Paradigm Shifts!
Foresight
Professional
Management
The Innovation Cycle IS:
Profitable Growth
and Value Creation
Resistance to
Change
21. Path Forward: Embrace Insightful Leadership
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• Get off the couch.
• 2022 is not 2019.
• Yesterday’s solution is not today’s solution.
• Disruptions are coming, Tipping Points are
coming, and Paradigm Shifts are coming.
• Kelly Slater, the youngest and oldest to win the
Super Bowl of surfing says: “Get rid of the fear,
understand what the wave is going to do and
become a part of it.”
• Grab your surfboard, get in the water and Go!
Go! Go!
22. In Conclusion
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• Humble Beginnings: Logistics & Supply Chain: Not important and not
contributing to competitive advantage.
• Troubled Present: Logistics & Supply Chain: Not working, major challenge for
most organizations and need reinvention.
• Amazing Future: Logistics & Supply Chain: Huge opportunity to reinvent and
make transformational contributions to organizational success.
o New leadership paradigms
o New dynamic operating requirements paradigms
o New resilience and technology paradigms