The COVID-19 pandemic disruption created an urgency in reacting and redefining the global supply chain in reaction to the consumer market upheaval. The initial pandemic disruption set off waves of related disruptions in such a short period of time that companies and organizations are overwhelmed because they cannot wait until the dust settles to address the next event. We have truly entered into a time of severe VUCA (Volatility, Uncertainty, Complexity and Ambiguity) across the marketplace and the supply chain is in the eye of this storm providing the key capabilities to respond. Now, perhaps more than ever, the response depends on partnerships across the extended supply chain to effectively sense and respond to the disruptions.
We must now assume that the cycles of disruption have reached a point where this time of severe VUCA will be the norm for the foreseeable future. As such, we must develop a strategy and the capabilities that help partner organizations in the extended supply chain to sense the disruption early and respond to the disruption quickly and effectively in a manner that can be leveraged for the response to the next wave of disruption. These demands require expertise in the broad market along with deep specific expertise of partners to first navigate the events and then develop a strategy to utilize the network capabilities to respond. Quick response requirements do not allow for delay hoping the disruption will disappear. We should have learned by now that it requires a response that is based on a market impact and expertise in quick identification of an appropriate response.
This is where technology and specifically a robust digital enablement / transformation strategy comes into play. The velocity of the market coupled with disrupting forces make it almost impossible for humans to sense the disruption in time to respond and limit the impact and prepare for the potential next disruption. Technology that senses the changes in the market and then identifies potential results and impact is critical to the success of a business. Considering the extended supply chain as an example, there is just too many moving parts and participants in the equation for any one partner to hope to identify and implement a response. Success requires developing a partner network to be able to respond to the waves of disruption effectively. Further success requires developing a market partner strategy that informs and enables each individual partner strategy.
This new model requires a strategy that is at once flexible and also embraces extended partnerships to enable the response to disruption in a way that supports the business strategy. Organizations must partner with an expert(s) to help develop this strategy in order to meet the time constraints. You cannot wait for the current VUCA environment to settle and return to business as usual. We need to accept the fact now that business as usual is a VUCA state that requires organizations and partners to ‘walk and chew gum at the same time’. This requires the input and direction from an expert with the vision and the experience and perhaps most importantly the network of partners and contacts that can help in developing this strategy.
Tom Brouillette
Contact: tbrouillette@ncspartners.com
@ncspartners
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Tom Brouillette discusses supply chain trends and provides strategic business & technology advice to his followers and companies.
