While not quite 2022, there are still plenty of stresses on the supply chain here at the mid-way point of 2024. .
Supply Chain Digest Says...
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Hire and develop “versatilists” - individuals skilled in three or four areas with some depth of expertise in all of them — and not just specialists., Gartner says. |
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Those include high geopolitical, trade and regulatory uncertainties; the ever-present pressure to drive greater productivity and efficiency, including a tremendous push toward new AI-based technology, which mostly remains un proven; and increasing climate disruption risks, impacting agriculture, the electric grid, and consumer behavior.
At least that’s what long-time Gartner supply chain analyst Stan Aronow wrote in a recent blog post on the topic of supply chain risk. Citing research by other Gartner analysts on the subject, Aronow says that given that companies are dealing with a shifting set of disruptors means they must go deeper than “tactical resilience,” requiring a change to their enterprise operating models (EOMs) in a way that allows for greater adaptability in shorter time horizons.
The Gartner research finds that “typical operating model transformations take too long to realize value. A full redesign to a target model generally takes three to five years, meaning it will likely be obsolete before it is delivered.”
Yikes! So what to do?
Gartner recommends “building more modular, interchangeable and adaptive business model elements versus shifting from one monolithic and rigid model to another.
There are four key imperatives from this change, Gartner says:
• A shift in focus to smaller, discrete activities - business capabilities - that exist independently of the workflows that sequence them. These could be process steps in a physical environment like a factory or warehouse or logical steps such as those used in planning, Gartner says.
• Decoupling data, activities and decision rules from a workflow and implementing them as discrete components so they can be leveraged as part of an alternative workflow to meet different needs. That, we say, is a bit of a mouthful. But Gartner says companies “can still execute the building blocks as a standardized workflow for as long as it makes sense. But when an opportunity or disruption arises, they can easily compose them into additional flows without duplicating the original.”
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 • Hiring and developing “versatilists” - individuals skilled in three or four areas with some depth of expertise in all of them — and not just specialists. Versatilists can fulfill multiple roles, rather than limiting their scope of work to one job.
• Moving toward adaptive governance, by pushing accountability for outcomes as close to the point of value creation or delivery as possible to expedite action.
Got all that?
Gartner even says that in the current environment, “having an agile and flexible operating model is as important as operational excellence and the concept of modular design is a critical ingredient.”
The result: better and faster response to supply chain changes and disruptions, Gartner says.
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