Transforming Traditional Supply Chain Practices: Critical for Modern Efficiency!
It's been damn near half a century since the phrase "Supply Chain Management" entered the conversation. Over this time, the term has served to generally define what the field is about. But as we move forward, what "Supply Chain" means today may not be enough for the future.
Has the time come to find a new name to describe this field? Has the time to come to rebrand and revolutionize Supply Chain Management?
A look back
In 1982, Keith Oliver defined the Supply Chain concept as follows: "Supply chain management (SCM) is the process of planning, implementing, and controlling the operations of the supply chain with the purpose to satisfy customer requirements as efficiently as possible. Supply chain management spans all movement and storage of raw materials, work-in-process inventory, and finished goods from point-of-origin to point-of-consumption."
However, these functions have been around for thousands of years, long before the term was even created. Ancient civilizations utilized techniques and processes for the planning and movement of materials, the management of inventories, and the fabrication of goods.
I also kicked off my career in 1982. It took years before I heard "Supply Chain" being used and starting to appear on organization charts and job titles. For most of the 40 years since 1982, "Supply Chain Management" has been widely recognized, accepted, and understood within companies and industries. Over the last 10-20 years, it has become more recognized and acknowledged in academia, with universities and colleges now offering degree programs in Supply Chain.
But it wasn't until 2019, with the global Coronavirus pandemic, that society at large, including government leaders, politicians, the media, and the average person, became exposed to "Supply Chain Management." Prior to the pandemic, the term was rarely heard.
This brings us to today, where we are at a major crossroads in the history of Supply Chain.
The obvious need for change
Antiquated views of what falls under this umbrella term, combined with a pending digital renaissance of what this function will become, and a world that is largely new to the phrase in the first place, all suggest that now may be the time to rebrand and reinvent Supply Chain Management.
One of the issues that Supply Chain Management has always faced is a lack of respect. Supply Chain involves what have traditionally been considered lower-value, back-office functions like purchasing, warehousing, logistics, and material handling. These functions were viewed as necessary but relatively unimportant compared to higher-profile functions such as sales and marketing or research and development.
The reality is that these functions are crucially important. If nothing else demonstrated this, it took a global pandemic that shut down the world to show everyone just how important Supply Chain was to the very survival and existence of any company, industry, or institution.
However, the baggage of traditional views of Supply Chain continues to persist. Far too many companies still don't have executives who understand Supply Chain and represent it for the leadership function it is.
The future also necessitates a rethink by everyone in this field. We are at the beginning of the digitalization of every aspect of our lives, for decades to come. Core to that digitalization is the creation and deployment of the Digital Supply Chain.
The Digital Supply Chain brings together all advanced technologies: Cloud Computing, Blockchain, Virtual Reality, Autonomous Vehicles, Predictive Analytics, Machine Learning, Big Data, Control Towers, Robotics, 3D Printing, and more.
The Digital Supply Chain requires the creation of an electronic connected end-to-end enterprise inclusive of every business process, including all suppliers, operating entities, customers, and functions. Only Supply Chain can lead and create this environment.
The digital future will demand dramatically different skills and talents from its leaders and practitioners. Even the current educational and professional certification programs are struggling to keep up with the quantum leap to skills that will be needed in the future.
This future is a dramatic departure from the traditionally limited view of what Supply Chain is. Given old and current baggage and antiquated views of what Supply Chain is, it seems obvious that using this term in the future will hinder the progress that we need to make to realize a digital future.
A new name for a new era: Digital Operations Network
If you accept that it's both the time to rebrand Supply Chain, and the need exists, what names would you consider? As stated earlier, "Supply" is too limiting. "Supply and Demand" are also too limiting. The future of this function requires the holistic end-to-end management of every aspect of any business or entity.
"Chain" also doesn't do justice to the complex nature of modern supply chains. In light of this discussion, we propose alternatives to "Supply Chain Management" such as:
- Digital Operations Network (DON)
- Resilient Supply Intelligence
- Agile Digital Ecosystem Management
- Digital Transformation Operations (DTO)
Our preference is "Digital Operations Network" (DON). It encapsulates the complexity and dynamism of modern supply chains, focusing on networks of supply and demand, with advanced digital tools to foster resilience, intelligence, and agility.
Let's be a part of the rebranding of Supply Chain Management and embrace a new era for our profession!
- As we move towards a digital future, the need for rebranding and revolutionizing Supply Chain Management has become increasingly urgent, given its antiquated views and the digital renaissance that is imminent.
- The digitalization of every aspect of life demands a new skillset from leaders and practitioners in the field, which current educational and professional certification programs are struggling to address.
- The Digital Supply Chain encompasses all advanced technologies like Cloud Computing, Blockchain, Virtual Reality, Autonomous Vehicles, Predictive Analytics, Machine Learning, Big Data, Control Towers, Robotics, and 3D Printing, requiring an integrated, end-to-end enterprise.
- A new name is essential to reflect the holistic nature of the changing landscape, and alternatives like Digital Operations Network (DON), Resilient Supply Intelligence, Agile Digital Ecosystem Management, and Digital Transformation Operations (DTO) offer more comprehensive definitions.
- Embracing a name like Digital Operations Network (DON) would encapsulate the complexity and dynamism of modern supply chains, prioritizing networks of supply and demand while leveraging advanced digital tools for resilience, intelligence, and agility.
