BY KADIJA MOHAMED
The global pandemic clearly demonstrated that supply chains face enormous challenges, and the current structure is increasingly being called into question. Having once been something of an organizational support function, the supply chain has taken on a central role and become a key competitive factor. Is the ability to collaborate effectively something that can enable us to deliver on our promises throughout the entire value chain?
In the supply chain field, people talk about VUCA factors—Volatile, Uncertain, Complex, and Ambiguous. This is originally a military term that emerged in the 1980s but is now used more broadly to describe the changing environment and instability that characterize today’s global world. In this global business environment, organizations must be aware of how external systems, risks, and trends affect their operations—and how they can act accordingly to positively influence their supply chains.
Sustainable Supply Chains
It is important to realize that neither organizations nor companies can tackle the growing global challenges on their own. On the contrary, I believe that the best way to achieve sustainable supply chains is through increased collaboration among the actors in the chain. A more conscious approach to design would create closed-loop production cycles and sustainable business models. At the same time, advanced data analysis also requires more effective communication among various stakeholders to collect and process data.
From Transaction to Relationship and Collaboration
Industrial development has facilitated rapid changes driven by industrial and population growth. But it has also led to fundamental environmental and social changes. Climate change, resource depletion, and growing inequality are some of the consequences of wasteful and unsustainable production and consumption. Companies now need to adapt and address these challenges. Change also brings new opportunities. And we need to view the global challenges as
an opportunity for innovation and collaboration toward a more positive future. Although collaboration in the supply chain is not a new idea, it has previously focused on transactions. There are significant benefits to expanding collaboration beyond mere trade and exchange. Deeper partnerships based on trust can lead to mutual growth for companies and inspire them to jointly tackle challenges that reduce risks to businesses, the environment, and society.
Complex, fragmented supply chains
Most supply chains have evolved over time rather than being deliberately designed to become what they are today—extremely complex and fragmented. At SAP, our vision is to transform today’s fragmented flows into unified, collaborative, and intelligent networks to help companies securely adapt to changing market dynamics and future-proof their operations. Collaboration platforms—such as SAP Business Network—support and expand connected processes beyond the boundaries of an organization. Collaboration platforms that bring together key supply chain partners facilitate the seamless exchange of data and insights between businesses, regardless of where they operate. The result is deeper and more sophisticated collaboration that paves the way for greater flexibility and rapid adaptation (agility). True cross-border collaboration in the supply chain requires not only a commitment to implementing strategies and redesigning processes, but also making the best possible use of technological innovations and tools.
A one-stop shop for all business partners
The value of a network lies in its size and reach. It can be compared to how LinkedIn or Facebook give us access to personal contacts. With a one-stop-shop for all business partners’ needs—including a directory of all collaboration partners, a single data model, and a unified user experience within an open architecture—it’s possible to transform how the network operates. A collaboration platform of this kind makes it possible to coordinate processes within the company’s network and create frictionless collaboration and coordinated action between partners and organizational functions. The result is more efficient processes and workflows that make it easier and safer to collaborate, communicate in real time, and address various disruptions that may arise in the supply chain.
Build in greater resilience and sustainability
In 2022 and beyond, I see a tremendous opportunity for all of us to keep our promises to customers, employees, the environment, and the community on which we depend. Right now, supply chains are undergoing a transformation toward greater resilience and sustainability. For all employees in the supply chain, the challenge is to strike a complex balance between improving the customer experience and being cost-effective, while also investing in a more resilient and sustainable supply chain. My colleagues at SAP and I look forward to supporting you on that journey.
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Kadija Mohamed is a Senior Solution Sales Executive for Digital Supply Chain Management at SAP.
