Inbound Logistics | January 2022

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MAP YOUR PROCESSES— APPLY SUPPLY CHAIN TAXONOMY. Manufacturers will look to technology in 2022 for supply chain solutions, but purchasing a fancy tool will not solve problems unless you’re prepared. Artificial intelligence is widely misunderstood, with the largest companies just beginning to reap the benefits of machine learning after years of work. Companies over the next few years need to spend time and money: Increase the quality of data currently stored in their servers; expand the collection of data to sources outside their ERP systems (the Internet of Things), and learn to utilize this information to better understand business facts and behaviors. Effective system integration across all business functions is complex, and integrating external information—from suppliers and other external data—adds another layer of complexity and risk of capturing inaccurate data. Full utilization of these systems requires a company to develop an accurate and complete business process taxonomy, which is a map of necessary business processes from each department of an organization and supply chain partner. ERP software and consultants bring technology knowledge, but only those performing the functions can explain the knowledge of an organization. This holistic approach to systems integration is critical for technology to help minimize the effect of supply chain disruptions. Mark Fagan Global Leader, Manufacturing and Distribution, Moore Global Partner, Citrin Cooperman INTEGRATE DISPARATE SUPPLY CHAIN TECHNOLOGIES. Due to the tight labor market, companies will focus on core processes and explore opportunities to outsource non-core functions like returns management and liquidation. Sustainable business has become table stakes and businesses need to prove results to regulators and consumers. As we move into 2022, supply chain managers will need to make integration technology a central focus to keep both sustainability and profitability top of mind. Pandemic-induced supply chain hurdles offer a reboot opportunity for companies. As business leaders are forced to rethink strategy, they can leverage technology to both improve supply chain performance and address sustainable supply chain management practice from product design through to distribution and the end of an asset’s life cycle. Technology delivers a measurable, demonstrable way to prove commitment to environmental protection in all facets of the business. 13

REMEMBER PEOPLE UNDERPIN TECHNOLOGY. Companies that are successful this year will be investors in their people. True performers in the technology eld need to be continually challenged and have opportunities to spend a portion of their time learning the new industry technology. The best companies will encourage their team members to spend 10% of their time on applying cutting-edge technology to the supply chain problem. Innovation is driven by employees already within the organization. Technology leaders need to actively help team members develop and manage their career planning. Lip service to development and opportunity will cost companies their best technology talent. Ensuring that the technology staff understands the entire stakeholder model and how to deliver value for clients, whether internal or external, means the business views the results as success. When technology is successful, the business has the tools needed to be successful. Supply chain solutions to the current environment will lean heavily on technology, which begins with people. Bart Bullard VP of Technology & Innovation Pegasus Logistics Group

Brian Johnson SVP Logistics, Liquidity Services

230 Inbound Logistics • January 2022

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