Supply Chain Network Design
Supply Chain Network Design, How to Create Resilient, Agile And Sustainable Supply Chains, by Nick Vyas, Das Dasgupta and Greys Sosic, Kogan Page, 2024
Three supply management thinkers share their detailed recommendations for new and complex supply and logistics issues. Apart from the post-Covid crunches, they see the benefits of improved global IT tools. How it all gets integrated, however, to guarantee controlled deliveries amidst world-wide warfare, energy and transport challenges, is what we need laid out. Our three Supply Chain Network Design authors cite powerful solutions with deep research and examples chosen from three current case studies. .
Case Study #2, Lithium Battery Supply
Despite Tesla market ups and downs. the US continues to be watchful of lithium battery sources - current and future - as well as the production and transport networks to support them. The FCAB, a US Federal agency group, estimated in 2021 that worldwide sales of passenger EVs in 2040 will reach approximately 56M, of which 9.6M would be in the US market. Because the US auto industry contributes 5.5 percent to the GDP, that shift away from fossil fuels means that anything that happens with lithium batteries will have a strong impact on the whole US economy, Despite some downhill numbers, domestic production provides most of the battery packs used in the US.
What do our questions about the future of lithium battery production and supply management tell us? Manufacturing is looking homeward for many products, lithium included. The authors point out that because "the fragility of global supply chains is motivating countries to turn their attention to domestic manufacturing and supplies of raw materials, " developing a dependable domestic source becomes supply critical. Further, the continued increased focus on manageable global networks cannot but help improve all global supply chains.
Case Study #1 looks at the global protein industry and the role of technology in its networks. In the US, animal-based foods as a percentage of calorie consumption, among the highest in the world, exceed 30 percent. Covid changed our consumption patterns and uncovered new IT needs relative to traceability and speed; the McDonalds and Chipotle case examples highlight supply chain challenges that companies are learning to manage.
Case Study #3, US Discount Retail
Although this retail chain manages over 1900 stores domestically, and its markets are well covered, what other business leaders will find impressive is how per the authors, the company's supply chain is designed to be data driven and fast. In order to meet and grow retail demand the company uses real time data to optimize inventory levels, fulfillment processes and transportation routes. The authors cover how thirteen IT innovations, including artificial intelligence and machine learning, grew an advanced integrated IT system that has facilitated growth, customer satisfaction and reduced costs. This retailer's omnichannel approach has become a key competitive advantage and manufacturers dealing with unintegrated IT systems and supply chain delays will find new solutions in this retail example.
We know that old, linear, or unintegrated supply networks, particularly those driven by layered software that was grown and added as markets changed, are a struggle that hold back complete performance. But good examples help, and for supply chain network design and functionality, studying success stories is a great and safe place to start. Further, a global perspective is going to uncover regional differences that matter. We think this book opens up even more support for critical IT work that our manufacturers now want as they work to move beyond lean.
Patricia E. Moody
FORTUNE magazine "Pioneering Woman in Mfg"
IndustryWeek IdeaXchange Xpert
A Mill Girl at Blue Heron Journal, on-line resource for business thought-leaders and decision-makers, patriciaemoody@gmail.com