Supply Chain Woes and The Age of Perpetual Transformation
#006
Amidst a global backdrop of supply chain issues, energy increases and the rapid pace of technological advancements, there is hope for those bold enough to make the change.
Spotlight
Industry
Supply Chain - In our recent survey of over 80 leaders within the supply chain and logistics sectors, we've uncovered a range of key insights that shed light on the current landscape, emerging trends, and valuable learnings that are shaping the industry's trajectory. The survey primarily focused on the freight forwarding sector and its related challenges, along with significant shifts influenced by the ongoing market dynamics.
TLDR
Manual Processes Prevail: Despite technological advancements, the first mile in freight forwarding remains manual, leading to inefficiencies.
Cost-to-Serve Matters: In a commoditised industry, container pricing is set by the market. Forwarders focus on optimising cost-to-serve and efficient hand-offs.
Shifting Mindsets: Customers now embrace change, seeking solutions for efficient planning, reduced warehousing, and maximised container use.
Tech's Impact and Challenges: Technology brings both valuable data and noise. Digitisation is progressing, but data-driven decisions are still evolving.
Post-COVID Landscape: Freight rates fluctuate drastically due to pandemic effects. Industry faces challenges in rates, competition, and supply chain disruptions.
Manual Processes and Industry Complexity:
One prevailing theme that emerged from the survey is the persistence of manual processes, particularly in the first mile of shipments. Despite the evolving technological landscape, the first mile remains largely manual, creating inefficiencies and room for errors.
Changing Mindsets and Customer Expectations:
An encouraging trend highlighted in the survey is the evolving mindset of customers. More enterprises are embracing change and seeking solutions for efficient shipment planning, reduced warehousing inflow, maximised container utilisation, and decreased returns. This signifies a significant shift from the past, where such considerations were not as prevalent.
Technology's Impact and New Challenges:
The advent of technology and data has ushered in a new era of possibilities and challenges. While technology has provided more valuable information, it has also generated a deluge of noise. The ability to sift through this noise and extract meaningful insights becomes pivotal. Customers, although increasingly sophisticated, are not yet fully digitised. While documents may be digitised, a substantial portion of decisions is still made via communication platforms like calls, WeChat, and WhatsApp. True digitisation necessitates data-driven decision-making, something that is still evolving in the industry.
Post-COVID Market Dynamics:
The survey underscores the dramatic impact of the pandemic on the market. The fluctuation in transpacific container prices over the years, from a modest $2k to a staggering 10x increase, and then a subsequent decrease, highlights the market's instability. The chaos in the recent period and the inventory glut, particularly in the US, have further intensified these challenges.
Challenges and Expectations Ahead:
As the industry navigates these changes, several challenges lie ahead. Freight forwarding faces a steep decline in rates, prompting concerns about sustaining employment levels. The competition's race to the bottom on prices and the impact of interest rate rises further complicate matters. Customers, on the other hand, are grappling with reduced pricing, intense competition, and a need for discernment when selecting suppliers.
Anticipating the Full Report:
With these insights forming the cornerstone of our survey, readers can expect the forthcoming full report to delve deeper into these trends and challenges. Offering key strategies for success The report will explore case studies, strategies, and actionable recommendations for industry players to navigate the evolving landscape successfully. By leveraging the survey findings, our aim is to equip decision-makers with the knowledge needed to make informed choices and drive sustainable growth in this dynamic sector.
The full report is due beginning of October.
To receive an early copy, reach out to us here.
The Leaders Digest
What's weighing on the minds of those leading the organisations of today.
The CEOs blueprint to perpetual transformation:
In today's world, organisations must be constantly transforming to remain competitive. This requires a culture of change, robust risk management, and significant investment. By investing in the right capabilities and building a culture of transformation, organisations can position themselves for success in a world of constant change. In a world of perpetual disruption, incremental and iterative change is no longer enough. Organisations must embrace a culture of transformation that encourages risk-taking, risk management and learning.
Below is a key excerpt from our latest insights into perpetual transformation.
The CEO's Role in perpetual transformation
The journey through the various facets of perpetual transformation has revealed a landscape that is both complex and exhilarating. From the importance of culture and collaboration to the need for agility, future focus, and more, the process of perpetual transformation demands a multi-dimensional approach. At the helm of this intricate and dynamic journey stands the CEO, a pivotal figure whose role in leading perpetual transformation cannot be overstated.
In addition to the key attributes of an exceptional transformational leader, there are clear steps that those who apply this model well take.
Setting the Vision
Perpetual transformation begins with a clear and compelling vision. The CEO is the visionary, the one who sees beyond the present, understands the possibilities of the future, and articulates a path that inspires and motivates. This vision is not a vague or grandiose dream; it's a strategic roadmap that aligns with the organisation's values, goals, and potential.
Cultivating a Supportive Culture
As explored in the earlier chapters, culture is at the heart of perpetual transformation. The CEO is the chief culture officer, shaping an environment where innovation, collaboration, learning, and risk-taking are not just encouraged but celebrated. This includes fostering a sense of psychological safety, where people feel free to express their ideas without fear of ridicule or punishment.
Aligning Resources
Transformation is not merely a conceptual exercise; it requires tangible resources. From investments in technology and training to the allocation of time and talent, the CEO ensures that the organisation has what it needs to embark on the transformation journey. This is a strategic alignment, where resources are not scattered but focused on the areas that will have the most significant impact.
Leading by Example
The CEO embodies the values and principles of perpetual transformation. Whether it's a willingness to learn, a passion for innovation, or a commitment to collaboration, the CEO's behaviour sets the tone for the entire organisation. This leadership by example creates a ripple effect, influencing attitudes and actions at all levels.
Balancing Continuity and Change
The CEO's role in perpetual transformation also involves a delicate balance between continuity and change. While driving transformation, the CEO must also ensure stability, maintaining the core strengths of the organisation even as it evolves and grows. This balancing act is a subtle art, requiring insight, judgement, and strategic finesse.
Engaging with Stakeholders
Perpetual transformation is a shared endeavour, and the CEO plays a central role in engaging with various stakeholders, including employees, customers, shareholders, regulators, and more. This engagement is not a one-way communication but a dialog, where insights are gathered, expectations are managed, and relationships are nurtured.
Embracing Ethical Leadership
As noted in the discussion on future focus, perpetual transformation carries ethical responsibilities. The CEO must lead with integrity, considering the broader impact of transformation on society and the environment.
The CEO's role in perpetual transformation is multifaceted and profound. It's about more than decision-making or administration; it's about leading with vision, courage, empathy, and wisdom. It's about creating a space where perpetual transformation is not a project but a way of being, where the future is not a distant target but a living reality.
You can access the full analysis by clicking the link below.
Latest Insights
The CEOs blueprint to perpetual transformation
Read here
For deeper industry reads be sure to subscribe to Special Reports below.
Recent Case Studies
At one manufacturer, we helped build an analytics growth engine capable of transforming the way they interact with customers. We designed a new go-to-market model leveraging analytics and customer insights to drive sales and marketing efforts boosting overall profitability by 18% and quarterly sales by 35% in the first 12 months.
Read moreIn 6 weeks, we helped a data-driven hedge fund cut their annualised cloud costs by more than 25%, improving OpEx and directly driving increased profitability.
Read more
Want similar results? Reach out to find out more.
How can we help you?
Get in touch with our strategy practice.