GOODQUESTION
COMPANIES ARE ADVANCING SUPPLY CHAIN RESILIENCE with automation and AI, creating enhancements and increasing productivity during periods of high demand that were otherwise manually unachievable. To mitigate long- term supply chain risks, businesses must consider other tactics like regionalization and workforce training alongside automation and robots. –Annie Noel Chief Operating Officer, Vention OUR CLIENTS HAVE BEEN MORE ACTIVELY exploring resiliency. One method is scenario modeling, which helps companies explore the most efficient and cost- mitigating network structure by identifying where facilities should be, how many are needed, service level performance, functionality, advantages of shoring initiatives, ESG considerations, product mix, and inventory policies. –J.C. Renshaw Senior Supply Chain Consultant, Savills COVID HAS GONE FROM PANDEMIC TO ENDEMIC and the same has happened to supply chain disruptions; economic, geopolitical, cyber, and environmental disruptions dominate. Supply chains have become more resilient; however they have not recovered to their pre-pandemic performance with too many being bottom line—not resilience—focused. –Matt Spooner Industry Thought Leader, Kinaxis COMPANIES HAVE MADE SIGNIFICANT STRIDES through further diversification of suppliers and more supply/product redundancies. Businesses were also forced to reevaluate and strengthen their operations where vulnerabilities became readily apparent including asset controls and employee policies. –Michael B. Wilson CEO, Consolidated Chassis Management (CCM) ONE, BUSINESSES REALIZED THEY LACKED real, accurate, timely information about their
Proceed with Caution
Yes and no. Since 2020, many shippers have grown more resilient by reevaluating their ordering and inventory levels, diversifying vendor relationships, investing in nearshoring, and leveraging systems or partners that provide greater visibility into supply chains performance. However, a softening transportation market over the past 12-15 months has provided a false sense of security for companies who have not taken the time to shore up their processes, and they may struggle to adapt when cheap and reliable capacity is less abundant in a tighter market. –Ben Steffes VP, Managed Services, Coyote Logistics
shipping operations—what they were spending, what was driving expenses, how costs were increasing each year. Two, many realized diversification of carriers was important to give them the redundancy they needed in case of delays. These moves have resulted in real progress and improved resiliency across the industry. –Josh Dunham Co-founder and CEO, Reveel YES FOR SOME. Some companies have significantly leveled up their supply chain visibility so that they can react in real time with high accuracy. However, there’s still quite a few companies that need to invest in supply chain and inventory visibility to stay resilient. –Sankalp Arora CEO & Co-Founder, Gather AI COMPANIES MOVED TOWARD VENDOR DIVERSIFICATION , automation, nearshoring, creative staffing, and risk mitigation solutions. Many were able to test and improve contingency plans. Many will return to the old ways, but the overall industry will learn and evolve. –Jim Heide COO, Loadsure THE SUPPLY CHAIN BENT but never broke during the pandemic, largely due to the incredible resilience of our transportation system, and due to the risk mitigation actions taken by
logistics companies. There was never a day—ever—where we were not able to locate a truck to move a shipment. –Anne Reinke President & CEO, Transportation Intermediaries Association MOST COMPANIES ARE PROACTIVELY IDENTIFYING alternative products in case of supply issues like delays or manufacturing bottlenecks. It’s crucial to evaluate supply chain and inventory management activities and collaborate with suppliers to ease burdens, safeguard against supply disruptions, and mitigate future pain points. –Dakonya Freis VP, Commercial Development, Nelson-Jameson
Have a great answer to a good question? Be sure to participate next month. We want to know: What’s one supply chain misconception that needs to be cleared up now? We’ll publish some answers. Tell us at editorial@inboundlogistics.com or tweet us @ILMAGAZINE #ILGOODQUESTION
February 2024 • Inbound Logistics 7
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