Global tech firm Oracle says supply chain heads can turn change into fortune in a new paper.
Four Ways Supply Chain Leaders Can Turn Change Into Opportunity explains how organisations worldwide are experiencing seismic changes in how they operate.
“Customers expect more, demanding fast, convenient, and personalised products and services,” Oracle says.
“Employees expect more, seeking employers that share their values, offer flexible work options and equip staff with modern technology. Shareholders expect more, pressing executives to improve diversity and sustainability, and to find new sources of revenue. Organisations must meet these changing expectations—all while navigating economic uncertainty, supply chain disruption, and regulatory scrutiny.”
Over a third of all Australian businesses experienced supply chain disruptions in February 2022 (37 per cent), according to the Australian Bureau of Statistics (ABS). Of that figure 88% said they had noticed an increase in time to receive products from suppliers.
Oracle states organisations leading the way are “breaking with conventional best practices” leveraging cloud and advanced technologies.
“Supply chain leaders, in particular, have a critical role to play in managing change and redefining best,” Oracle says. “An agile and resilient supply chain has never been more important. Leaders must guide company investments in new technologies that provide deeper visibility and more precise control.”
Leaders are encouraged to attract the right talent, with the skills needed to “drive a culture of innovation.”
The paper urges finance and supply chain leaders to partner up.
1. Engage and inspire employees
The research found employees are prioritising work-life balance, mental health, flexibility, and meaningful work over a steady pay cheque.
Also, 85% of respondents Oracle spoke to want technology to help them define their future.
“Not only do employees want to work for companies that match their values when it comes to issues such as sustainability and diversity, many have become accustomed to more flexible, virtual jobs,” states Oracle.
Employers are urged to think seriously about the latest cloud technologies. Those who are “forward-thinking” are providing the latest, up-to-date cloud technologies including artificial intelligence.
2. Manage your business responsibly and sustainably
ESG as we know is growing in prominence.
And as Oracle states, it’s not only employees pushing for organisations to demonstrate commitments to environmental, social, and governance (ESG) goals; consumers, shareholders, investors, and regulators share these expectations.
“The risk of not addressing ESG is considerable,” Oracle says. But the pay off for doing it right extends far beyond “the feel good factor.”
“In addition to being better positioned to improve customer loyalty and attract the best talent, organisations are getting meaningful business value from their ESG investments, from revenue gains to cost savings,” Oracle says.
A move to cloud is seeing some companies reduce energy consumption by 65% and carbon emissions by 84% or more (Accenture). To maximise the success of new business models and other ESG initiatives, finance and supply chain leaders are encouraged to make strategic technology investments to:
- be fiscally responsible with ESG priorities
- integrate financial, sustainability, and D&I reporting
- understand the carbon footprint of your trucks and other transport
- plan for a sustainable future.
3.Anticipate and respond to supply chain disruptions
With so much at stake, companies should re-evaluate conventional supply chain approaches and technologies, Oracle says.
Companies should plan for disruption—and be ready to pivot.
“By connecting your logistics systems with IoT, you can track the location of every shipment in your supply chain in real time. With chatbots and digital assistants, you can receive updates on the go and make alternative arrangements if a shipment runs into an obstacle,” Oracle says. Introducing machine learning is encouraged as it allows logistics systems to learn and get smarter over time. This will help “better predict transit times and reduce the cost of unplanned delays.”
The document also suggests eliminating weak links in your supply chain and diversify sourcing strategies.
“Assess suppliers and minimise disruptions through structured evaluations that include risk attributes, regulatory certifications, capabilities, and sustainability practices,” Oracle says.
An IDC survey found, 70% of companies are focusing on improving supply chain visibility, and 80% are looking for ways to be more agile.
4. Exceed every customer expectation
To support long-term customer relationships companies are encouraged to “evolve their entire business culture.”
This will support and maintain long-term customer relationships, and place technology the centre of this shift.
More than half of respondents (65%) said initiatives to improve customer experience led to higher profit margins or improved brand reputation.
“Growth lies in launching services-based and subscription business models that can provide recurring revenue streams,” Oracle added.
Other considerations for businesses include:
- empowering customers with an effortless experience: Including simplifying processes so buyers can place, receive, and cancel orders as fast as possible.
- Send order updates at every step of the purchase: Optimise order management, provide real-time visibility, share progress, and avoid surprises.
- Uncover underlying supply chain drivers: Gather insights by advanced analytics to improve efficiency and reduce costs.
Get Oracle’s Four Ways Supply Chain Leaders Can Turn Change Into Opportunity
