The United States needs resilient, diverse, and secure supply chains to ensure our economic prosperity and national security. In support Prof. Biden issued an executive order on America’s Supply Chains.
The Case for a Federal Office of Supply Chain
A coalition of industry group as well as the world economic forum has identified an Office of Supply Chain as an important step for a country to ensure that its supply chain infrastructure and capabilities make it competitive in the global economy.
See also MH&L, Consumer Brands Association, and Supply Chain Quarterly.
„75 percent of consumer goods manufacturers experienced difficulties when they had to quickly increase or decrease production capacity due to COVID-19. In order to develop agility manufacturers should optimize visibility within their supply chain“.
The latest Capgemini study highlights two key topics - supply chain resilience and digitization - in which consumer goods manufacturers and retailers will be investing massively over the next few years, aiming to respond more quickly to disruptive future events or even anticipate them. Around 60 percent of companies are planning investments in these areas. Supply chain control towers are intended to enable faster response and proactive recognition of disruptions or risks throughout the supply chain.
Recent research from McKinsey Global found that as much as 45 percent of one year’s earnings could be lost each decade because of disruptions and that significant disruptions to production now occur every 3.7 years. Therefore, supply chain resilience has catapulted to the top of the C-suite agenda. SC Control Towers will help to achieve end-to-end digitization which will be critical in resolving long-standing trade-offs between efficiency and resilience.
COVID-19 has done what earlier disasters should have accomplished: It caused a widespread awakening to the vulnerabilities baked into our lean, cost-optimized supply chains. It has brought a greater focus on the need for building supply chain resilience capabilities.
Leading companies struggle to get the data they need and to set clear targets and standard. Engaging an often-fragmented supplier and customer landscape is challenging. A collaborative supply chain control tower solution can help to build a comprehensive emissions baseline - Step 1 (of 9) proposed by the World Economic Forum to accept the Net-Zero Challenge.
Acknowledgements: The financial support by the Austrian Federal Ministry for Digital and Economic Affairs and the National Foundation for Research, Technology and Development is gratefully acknolwedged.