8 Things Supply Chain Execs Need to Know in 2024

I've co-written a new eBook - an indisputable guide to supply chain management in 2024…

"Rethink Redesign."

I was thrilled to collaborate with Donald Hicks (The Founder and CEO of Optilogic Inc. ) on this one. We've both seen leaders manage disruption with familiar tools, systems and mindsets; but not enough embrace disruption and truly transform their operations to be more resilient.

There’s been a lull in supply chain management. As the world stabilised post-COVID, geared with new tools and approaches, it was easy to step into a “crisis-averted” frame of mind. Innovation appeared to be the answer and it left many stuck navigating through band-aid solutions and tech hype cycles.

(It’s one reason I started the Future Insights Network many years ago — to cut through the noise and focus leaders’ attention on the most impactful changes).

Many leaders believe they've unlocked the secret to resilience. We believe most have been caught by shiny object syndrome instead. No supply chain should just be reacting to volatility geared with a few new pulleys and levers to make things operate faster.

The lesson we all should have learned in 2020: stay ready!

It takes a complete redesign of systems, processes and people to:

• Open opportunities for more transformation
• Keep pace with trending market and tech advances
• Do what the top 20% of supply chain execs are doing

Where do you start?

Every supply chain exec can benefit from these 8 guidelines to thrive (not just survive) in 2024.

1. Long-Term Survival is Impossible If You Ignore Your Design

Supply chain networks that were designed to provide value cheap and fast may have been capable of surviving 20 years ago, but the state of volatility today sets those same value chains up for failure.

We’re once again in a position where we’ve “assumed” away the risk. Many businesses have fallen back into their historical overreliance on cost saving. Sadly, it creates a very brittle supply chain that isn’t diverse and agile enough to handle the risk presented. The price of budget cutting? Stalled progress.

Future-state supply chains will depend on an adequate revamp and a more resilient design. It involves the trade-off of weighing costs, services, risk and sustainability and building operations that will best support the critical functions and long-term objectives of the business.

Contextualising those needs is important.

It is a function that’s more nuanced and complex than the simple planning and management of everyday operations. It’s a predictive model that makes sure this management doesn’t fall behind in best practices and efficiency.

2. AI Won’t Drive Your Supply Chain Design

Most conversations we hear start with, “Can we use AI for this?” It’s fair to say that AI has become a versatile tool in the arsenal of any tech-savvy supply chain executive. But it has its limitations.

Design has always been a people-based function. It’s more intuitive, fluid, creative and adaptable. Its very purpose is to form something new, not something based on an amalgamation of historical thought processes alone. By that reasoning, design will always be driven by human ingenuity and thinking. If AI-based supply chain planning is like self-driving cars, then supply chain design planning is like self-driving destination selection. AI cannot tell the car owner where they want to go!

Disappointment will set in with companies who put AI in front of their mission statement. Its creative potential in building a supply chain (that ultimately serves people) will always be limited. Many companies will be left directionless. As AI becomes more common practice, few businesses will be able to make a remarkable dent with its usage, since everyone is doing much of the same thing.

If the competitive edge becomes diluted through common practice, no one wins!

3. Factors Driving Leading Manufacturers and Retailers to Transform

Manufacturers globally are leaving their tracks in different places. Rising energy costs, economic and political disruptions and even consumer demand have revived considerations like nearshoring, onshoring and “friend-shoring.” 

On the retail end of things, distribution supply chains are continuously looking for ways to adapt to the complexities of e-commerce, omnichannel and changing customer delivery expectations.

What are some areas of focus? Cases in 2024 have popularised the following:

Greenfield Analysis and Network Optimisation

Which involves the reduction of transportation expenses and emissions when planning new facilities in different locations - without compromising customer delivery.

Sourcing Optimisation

Which forms part of any exec’s key production equation, taking into consideration inbound materials, suppliers, transportation and inventory implications.

Inventory Strategy and Policy Setting

Which looks at in-transit and work-in-progress inventory impacted by any structural changes that affect lead times from suppliers.

Cost To Serve Analysis

Which allows companies to quantify and analyse the profitability of specific products and customers.

Transportation Route Design

Which analyses transportation cost as a component of logistic spending - something any supply chain design would be incomplete without.

4. Design for 2024 Election Outcomes

Over 60 countries globally are holding elections this year. The UK announced a general election on the 4th of July, just last week! This means that changing leadership and agendas worldwide could mould future policies with radical impacts. No one can afford to wait until post-2024 to start modelling new structures. A reflexive relationship with world events and the news is almost crucial to staying relevant in the global marketplace.

Have you considered these common issues that elections typically impact?

• Trade policy - impacted by globalisation or tariff/tax constraints.
• Labour policy - impacted by immigration laws, union-management or wage discussions.
• Economic policy - impacted by changing interest rates, tax adjustments or consumer spending.
• Infrastructure - impacted by evolving value chains and consumer trends.

Many key decisions that shape supply chains cascade from changes in any of these areas. Compliance with policy is also becoming more unforgiving - especially in the field of sustainability (just look at the recent EU greenwashing bans). It will become difficult to adapt the longer businesses delay, and even more difficult to hide if they don’t.

More Key Considerations for Supply Chain Execs in 2024? Download our eBook!

Want to know why supply chain design is more crucial than planning; why stopping design is a mistake; how supply chain redesign creates a blueprint for larger transformations; or how a 2025/26 design puts you in the upper echelon of global supply chains? 

Grab your FREE copy of the eBook now on my website to find out!

We’re long past the days when supply chain design occurred once every five years.

Focussing on the here-and-now planning approach may enable you to react to crises once they hit. But what happens when the frequency and intensity of these crises far surpass your ability to meet them?

Changing the limits of your capabilities keeps you adaptive to the global playing field.

This eBook will help you do more than just reach the efficiency curve of your current value chain. It will help you shift that curve and push the threshold of what you are capable of. It won’t only leave your supply chain business more competitive but it will make you a better potential collaborator to step into new business opportunities.

The possibilities of a resilient, secure and thriving supply chain are in your hands.

Are you ready to make the change?