Organizations across industries need to evolve their supply chain through the crisis to increase their agility and flexibility in response to the COVID-19. Effective control towers are an ideal solution.
Lately, my dialogues with clients have differed quite a bit from the normal. To say that a lot have happened in the last months would be quite an understatement. COVID-19 has impacted supply chains greatly, and leaders are looking for the right answers. How do we adjust our supply chain to still be profitable with a 20 per cent reduced top line while adjusting to customers new behavior? And how do we simultaneously make it scalable to growth in the future?
I believe control towers can be an ideal solution that provides increased flexibility, efficiency and risk management by giving organizations greater transparency and insights into every section of their supply chain. The right insights do not only allow organizations to respond quicker to change at both an operational and a tactical level, but also to build a supply chain that is readily changeable, adaptable and resilient.
In the current business landscape, flexibility is key for scaling up and down, adapting to the market and customer needs. While this tends to be an everlasting condition for businesses, the COVID-19 has certainly amplified it.
In the last few years, the technology that supports control towers has matured greatly. Organizations ability to locate and capture data, analyze it effectively and extract valuable insights are evolving exponentially. This makes control towers an important asset in steering successfully through the crisis.
Enhance visibility with control towers
Visibility will be critical to managing through the recovery—providing the best and most timely information available to support timely and confident decision-making. Control towers provide right time data visibility, proactive alerts, prescriptive insights, and automated execution. In some cases, these control tower solutions may need to be quickly pulled together. Worldclass control towers will be enabled by artificial intelligence and machine learning (AI/ML) and advanced analytics and ingrained in business processes through change management. Some examples to consider in managing through this crisis:
In my experience, the key to successfully build and deploy effective control towers is to map your supply chain issues and begin solving them in the order that has the biggest impact on your business. Is there e.g. an issue with the export? The production? The maintenance? Examine the part of the supply chain related to the issue, and ask yourself: What data (and insight) do I need, to find the right solution to the issue? How do I extract the data? How do I analyze it, and who needs these insights to make an informed decision?
Start small, work agile and focus on your issue, solving one before you move on to the next. Deploy your control towers where they make the biggest impact and then scale as you go. Simplify your approach and begin locating three data points in your supply chain related to your issue, capture the data, perform analytics and then use your insights to strengthen your supply chain. This approach can increase your flexibility, efficiency and risk management elevating your ability to steer safely through the COVID-19 crisis.
As a part of the Strategy & Operations practice Tore has worked with analysis, development and implementation of operational strategies. Tore has deep experience with aligning business models to changing market demands through optimisation of business processes and aligning systems, organisation and governance accordingly. He has industry experience from manufacturing, transportation, consumer products and energy. His main focus is on on the operational core processes but he also covers administrative support processes. As a program manager Tore has been leading transformation projects for international clients heading multiple parallel projects and reporting directly to executive committee members. His responsibilities cover everything from initiating assessments, identifying opportunities for improvement to building business cases and following up by designing solutions and driving teams through implementation.