Supply chain resilience has certainly gained a lot focus by supply chain leaders, the trade press, the analyst community, academics and others.
While the drive for supply chain resilience is a good thing, coming out of a couple of years of significant disruptions seen starting shortly after the beginning of the COVID pandemic in Q1 of 2020, companies need to go farther.
The consultants at Kearney are now saying companies need to look beyond resilience to what it calls a “regenerative” business model.
And just what does that mean?
Kearney defines a regenerate business and supply chains in part in a way that sounds quite a bit like corporate social responsibility.
“Regeneration represents our belief that future success depends on the ability to do business as part of a comprehensive system that both performs and cares for people and places,” Kearney says in a new report on the topic.
The report is partially based on survey responses from about 800 executives. Highlights from the responses include the following:
The majority of executives believe their organization is already on the way to becoming regenerative, but 56% also agree that significant work needs to be done.
What’s more, 90% of executives in the survey believe in the responsibility of business to create “a future that works for everyone.”
60% of those surveyed said that their companies need to do more to operate a regenerative supply chain, while 58% believe developing a regenerative business model represents a good opportunity for their companies.
Across the survey sample, leaders strongly agreed that a regenerative business needs a people-first mentality. Putting employees at the heart of it - by understanding their needs and fostering their successes - creates value for all.
How to get to this new place?
Kearney says to get a regenerative state, companies need to consider three pillars of action:
1. Operations
• Focus on repeatable value
• Develop business models that build on themselves for greater long-term value.
• Fundamentally rethink supply chains to be both adaptive and self-aware.
• Build an ecosystem of government, investors, communities, start-ups, and incumbents that all work together.
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2. People and communities
 • Do good by people both inside and outside the organization.
• Create confidence by showing commitment and working from an action orientation.
• Support leaders who demonstrate courage and take explicit responsibility for change.
• Prioritize people by making the tough decisions that will develop the next generation.
• Act to improve greater human well-being and equality, thinking beyond impact toward net positive.
3. Tech and data
• Learn faster, waste less
• Invest in powerful analytics to unlock life cycle value.
• Create personalized, contextualized customer engagement and experiences.
“Gone are the days when operations could operate in a silo,” Kearney notes in conclusion, adding that “In our regenerative future, we’ll need flexible, transparent partnerships among suppliers, manufacturers, distributors, logistics providers, and customers to respond quickly to disruptions and demands."
Any reaction to the concept regenerative supply chains? Let us know your thoughts at the Feedback section below.
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