The pandemic confirmed the critical and strategic importance of supply chain management. Lessons learned/takeaways have created a new SCM. Part 1 focuses on the supply chain itself with an operations take. Structure--organization, technology, and process. Upstream. Downstream. Digitization. Blockchain. Visibility. Metrics. The scope, size, and complexity of supply chains, especially upstream/inbound. This is also meant to challenge traditional views. Part 2 will present supply chain management in the context of key topics that are happening.

1. New Supply Chain Management
SCM Itself—Part 1
Tom Craig
tomc@ltdmgmt.com

2. How We Got Here
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3. Frontline
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Validated the strategic, fragile and
critical importance of supply chain
management

4. Have we maxed out the system?
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5. THE Question
Product demand is up.
Demand for ocean shipping is up; rates are
up. Demand for containers is up; prices are
up. Demand for ships is up; charter rates are
up.
Notice a trend
For how long?
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PRODUCTS TRANSPORTATION
WAREHOUSING

6. Asking
• How has the robust supply
chain & its logistics uncertainty
& chaos affected your
operations, planning, sales,
and ERP?
• What have you learned?
• What ongoing problems do you
have?
• Beyond the immediate, what
are you doing to adapt and
change going forward?
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7. Talking Points—
Lessons Learned/Takeaways
The Now What
Strategy
Technology
Organization
Process
Upstream
Downstream
Metrics
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Operations
Within SCM &
SCM outside
Part 1—Set the
SCM foundation
Part 2—Using it

8. Change
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9. Strategy/Action
Plan
• Strategy vs react
• Supply chain scope—size, complexity
& end to end
• 2 Approaches
• Traditional—transport & logistics or
inside the 4 walls & outside 4 the
walls (node/link or start/stop)
• Lesson--upstream/inbound &
downstream/outbound (flow)
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10. Upstream
• Where the supply of supply chains begins
• Problems here—exponential as flow
downstream
• Size and complexity
• Nonlinearity
• Suppliers’ suppliers
• Stakeholders—procurement, suppliers,
manufacturers, supply chain, planners,
finance, risk
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11. Downstream
 Customer facing/customer centric
 Brand image
 Sales channels & different SCM
approaches/strategies
 Stakeholders—supply chain, planners,
finance, risk, marketing, sales, real
estate
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12. Start Upstream
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13. Structure
• Technology
• Organization
• Process
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14. Technology
 Contactless: Drones, driverless trucks, warehouse robotics, 3D printing
 Data and analytics end-to-end/internal & external (and data sharing)
 Digitization
 Blockchain
 Visibility
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15. Digitization
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 You
 End-to-end
 Transportation
 Logistics
 Supply Chains
 Suppliers
 Their suppliers
 Customers
 The hidden players

16. Visibility
End-to-end
Many parties
Integrated/connectivity
Not track and trace (shipments as derivative
vs driver)
About:
Purchase Orders
Customer Order
Inventory/products
Exception management
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17. Blockchain
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• Digitize & digital ledger
• Visibility, lean,
transparency, streamlined
• International order
shipment
• Many parties
• End to end
• Chain of custody

18. Which is it?
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19. Tech Note
 B/L is document of title, cargo
receipt, transport contract.
 Using a forwarder
 Two B/Ls
 House
 Master
 Digitization
 Visibility
 Blockchain
 Chain of custody
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20. One More Tech Idea—Buy a Tech Firm
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21. Riddle me this
1) Technology as part of strategy or
reactions
2) Digitization and Contactless
Delivered shipment quantity vs bill
of lading quantity
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22. Organization
• Takeaway: Upstream & downstream / Align &
mirror with business
• Upstream
Procurement
Transport/logistics
• Downstream
Warehousing
Transport/logistics
• Technology imbed
• Centralize & Decentralize
• Segment
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23. Process
Horizontal process
Internal
External: upstream & downstream
Gaps & Redundancies
Align operations & sales to SCM (more than S&OP)
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24. Hint: Follow the products/inventory
 Process vs
 size of supply chain
 complexity
 all the participants
 Gaps & redundancies
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25. 25
Defined by Costs
or
Defined by Performance
Metrics

26. Metrics
• Meaningful, validate direction
• 2 types--C-suite & performance vs
SCM & logistics
• Customer order delivery
performance—perfect order
• Purchase order delivery
performance—perfect PO
• Inventory turns—E2E
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27. Thought
No Yes
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28. Part 2—SCM context
Inventory
E-commerce
Resilience
Reshore
Sustainability
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29. 29

30. To Be Continued
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