The document discusses the critical importance of supply chain management, emphasizing resilience before and after the pandemic. It highlights strategies for improving supply chain performance through technology, risk management, and alignment between upstream and downstream processes. Key considerations include adapting to logistics challenges, enhancing visibility, and redefining inventory management to respond to changes in demand.

1. Supply Chain Management
Resilience
Tom Craig
tomc@ltdmgmt.com
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2. Frontline and Strategic/Critical
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Validated the strategic, fragile and
critical importance of supply chain
management

3. First and
pre-pandemic
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How well did your
supply chain operate?
How did you measure its
performance?
Where are your pain
points?
What would you change
about your supply chain?

4. Asking
• How has the robust supply
chain & its logistics uncertainty
& chaos affected your
operations, planning, sales,
and ERP?
• What have you learned?
• What ongoing problems do you
have?
• Beyond the immediate, what
are you doing to adapt and
change going forward?
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5. Change
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6. Big supply chain &
resilience picture
Your supply chain
You are part of your customers’ supply chains
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7. Strategy/Action
Plan
• Strategy vs react
• Supply chain scope—size, complexity
& end to end
• 2 Approaches
• Traditional—transport & logistics or
inside the 4 walls & outside 4 the
walls (node/link or start/stop)
• Takeaway--upstream/inbound &
downstream/outbound (flow)
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8. Resilience &
Lessons Learned
Inside the 4 Walls
Structure
 Organization
 Process
 Technology
Metrics
Outside the 4 Walls
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9. Resilience, Business Continuity, & Risk
 How your supply chain operates,
plans, & is organized
 Adaptability
 Technology & contactless
 Complexity recognition
 Assets (insurance) vs outside the
4 walls
 Transportation & logistics
 Assess, identify, mitigate risk
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Increased Resilience
=
Reduced Risk/Being Prepared
for Unexpected Risk Events

10. Resilience
• Upstream & downstream
• Hidden parts
 Nonlinearity
 Supply chains within
supply chains
• Mapping
• Supplier tiers
• Chain of custody
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11. Resilience & Change
 Sales channels
 Customer supply chains
 Visibility
 Resource positioning / network
 Outsourcing
• Diversify production
• Shifting sales—demographics,
businesses, channels, etc.
• Supply chain network
• Redesign
• Outside logistics/transport providers
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12. Inside the 4 walls
Upstream & downstream
Structure
Organization
Process
Technology
Metrics
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13. Upstream
• Where the supply of supply chains begins
• Problems here—exponential as flow downstream
• Size and complexity
• Nonlinearity
• Products/materials/feedstock/assemblies/
components
• Suppliers’ suppliers
• Logistics—providers, infrastructure
• Stakeholders—procurement, suppliers,
manufacturers, supply chain, planners, finance,
risk
• Reshore
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14. Downstream
 Customer facing/customer centric
 Brand image
 Sales channels & different SCM
approaches/strategies
 Products/parts/materials
 Logistics—providers, infrastructure
 Stakeholders—supply chain, planners,
finance, risk, marketing, sales, real
estate
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15. Start Upstream
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16. Structure
• Organization
• Process
• Technology
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17. Organization
• Takeaway: Upstream & downstream / Align &
mirror with business
• Upstream
Procurement
Transport/logistics
• Downstream
Warehousing
Transport/logistics
• Technology imbed
• Centralize & Decentralize
• Segment
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18. Process
Horizontal process (biggest process you have)
Internal
External: upstream & downstream
Gaps & Redundancies
Align operations & sales to SCM (more than S&OP)
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19. Hint: Follow your products/inventory
 Process (not procedure) vs
 size of supply chain
 complexity
 all the participants
 Start: how you think it done
 Then: track it; who does what; where;
how, how long—internal & external/end
to end
 Gaps & redundancies in flows of
products/feedstocks (purchase &
customer)
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20. Technology
 Contactless: Drones, driverless trucks, warehouse robotics, 3D printing
 Data and analytics end-to-end/internal & external (and data sharing)
 Digitization
 Blockchain
 Visibility
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21. Digitization
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 You
 End-to-end
 Transportation
 Logistics
 Supply Chains
 Suppliers
 Their suppliers
 Customers
 The hidden players

22. Visibility
End-to-end
Many parties
Integrated/connectivity
Not track and trace (shipments as derivative
vs driver)
About:
Purchase Orders
Customer Order
Inventory/products
Exception management
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23. Blockchain
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• Digitize & digital ledger
• Decentralized
• Visibility, lean, transparency,
streamlined
• One-on-one?
• International order shipment
• Many parties
• End to end
• Chain of custody
• Sustainability

24. Tech Note
 B/L is document of title, cargo
receipt, transport contract.
 Using a forwarder
 Two B/Ls
 House
 Master
 Digitization
 Visibility
 Blockchain
 Chain of custody
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25. One More Tech Idea—Buy a Tech Firm
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26. Riddle me this
1) Technology as part of strategy or
reactions
2) Digitization and Contactless
Delivered shipment quantity vs bill
of lading quantity
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27. 27
Defined by Costs
or
Defined by Performance
Metrics

28. Metrics
• Meaningful, validate direction
• 2 types--C-suite & performance vs
SCM & logistics
• Customer order delivery
performance—perfect order
• Purchase order delivery
performance—perfect PO
• Inventory turns—E2E
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29. Where the visuals are
& what they mean
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30. How we got here
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31. What is going on
 Lack of empties
 Blank sailings
 Missed ports of call
 Rolled containers
 Poor on-time performance
 Rates going UP across modes
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32. What do you think?
Over 12 months, have the demand that
supply chains are trying to satisfy and global
reality gone beyond resilience?
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33. The Outside: Logistics
• Across transport modes
• Providers—who & why
• Power shift
• New way of negotiating and what to
target in negotiations
• Buying rates or service
• Rates or relationship
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34. Logistics & Transportation
Providers
 About the supply chain
 Inventory & performance impact
 Role and place of service providers &
relationship in your supply chain
 Lesson learned: Real contracts with
defined, measurable service
 3PL or 3PSCM / SCMaaS
 Ports
 Force Majeure!!!
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35. Reality, Resilience, & Risk (or Beyond Assets)
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36. Redefining/expanding who they are
 Maersk—E2E integrated
logistics
 CMA CGM--airplanes
 FedEx and Adobe
 CSX buying Quality Carriers
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37. Where pandemic impact shows
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38. Ship Cargo/Container Is Your Inventory

39. Inventory & what is happening
 High demand
 Lack of supply
 Stuck in transit
 Forecasting in a pandemic
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40. FYI
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41. Inventory
• Types: finished goods /
feedstock / ingredients /
parts / components
/assemblies / packaging
• Questions
• What channels
• Changes: kitting &
repackaging
• What products (A, B, C)
• Where position
• At suppliers
• In transit
• At warehouses
• At stores / factories
• Additional warehousing 41

42. Inventory
• Forecasting in a pandemic
• “Optimization”
• Inventory (inventory turns/days of
inventory) speed –HOW OFTEN YOU GET
PAID
• Critical products
• A,B,C
• More stocking points as to inventory &
complexity
• Velocity/turns & alternative investments
• Integrated visibility
• CoViD—more or buffer inventory
• Inventory & warehousing
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43. More Inventory?
Inventory sales ratio
Product substitutions
Process
Revenue maximization
How many times do you amend a purchase
order?
Time and inventory
International lean
Speed—now & future (IoT)
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44. And how things change
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45. Inventory Sales Ratio
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47. SKU Rationalization
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49. Your New Supply Chain
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Release
the
Kraken

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