Supply Chain: 5 Management Techniques for Leading Change

The supply chain is facing greater demand and new technological and ecological requirements, placing pressure on the system. The good news is that these tensions can be resolved by implementing more rational and creative organisational processes. Discover five effective management techniques specifically recognised for their impact on the supply chain.

At a time when agile management has proven its worth in all innovative supply chains, the notion of ambidexterity complements this approach to boost supply chain performance. There is no left and right here: ambidextrous management distinguishes between operational activities on the one hand and innovation on the other. This ambidextrous vision enables the resolution of the paradoxes of the supply chain, which has to automate to remain competitive and innovate while remaining functional in the face of unforeseen events (such as the Covid crisis or the war in Ukraine) to sustain performance levels.

To orchestrate an innovative and compelling vision, the ambidextrous manager or director connects these two lines of action using tried and tested tools and methods such as predictive analysis or a flexible and modular warehouse automation system. Thanks to this vision, it becomes possible to reconcile a reactive approach, which adapts to unforeseen events as they arise, with a proactive approach, which innovates to anticipate them. When this principle is applied, innovation becomes a recurring basis and is genuinely incorporated into operating processes. Researchers use the term robust supply chain to describe logistics chains that combine responsiveness and proactivity. One study has shown that a robust supply chain is more efficient than relying solely on agile methods.

Due to its cross-functional role, the supply chain plays a strategic part in driving change. It occupies a cross-functional leadership position in contact with marketing, operational services, the production chain, and finance. It is at the crossroads of two major challenges: the adoption of new technologies and new, greener processes. The logistics industry knows that 27% of supply chain innovation programmes are over ten years old.

How do you establish cross-functional leadership in the supply chain? There are many documented change management processes. The first step is to work on its value proposition. What is the mission of your supply chain, and how should it be fulfilled?

This initial definition stage is carried out using collaborative methods to involve all the players in the supply chain so that they become ambassadors. A value proposition that is subsequently accompanied by pilot actions that address both technological and ecological challenges, such as modernising the warehouse, which can serve as an example for other departments in the company and contribute to CSR policies.

The roadmap is a crucial strategic planning tool that can be customised to fit the unique characteristics of the supply chain. How? By using the Merlin method. There’s no witchcraft here; it’s all about devising a three-year action plan for the team. The Merlin method ensures that the strategy’s projects and resources are evenly distributed over the three years. Instead of implementing actions from the present towards the future, the method suggests starting at the end (the 3rd year) to make more ambitious goals achievable.

For best results with this roadmap, start with a traditional whiteboard instead of digital tools when working with your team. Participants should begin by envisioning what their supply chain and automated warehouse will look like in three years. This exercise stimulates creativity and is a crucial first step in the process!

When organising work, you are likely outlining the processes associated with your supply chain and warehouses. To delve deeper, consider creating a collaboration map that emphasises the connections and interactions between supply chain members rather than just operations. This technique enables a more objective approach to understanding and clarifying the roles of everyone involved in the supply chain, including customers and service providers.

Consider the following factors: values, behaviours, resources, and processes. Create a list of criteria (limited to 20 items to maintain focus), then assess each customer or service provider to clarify the terms of your collaboration. Once the map is complete, you can define priority projects and strengthen strategic partnerships to meet the challenges of logistics automation in your supply chain.

Value Stream Mapping is a problem-solving approach that originated from lean management and is well-suited for analysing complex supply chains. It involves mapping an entire process, such as automating the supply chain, as a team. This includes identifying storage points, quality data, operator tasks, robot missions, processing times, and information flows.

Just like with the supply chain roadmap, it’s best to carry out this exercise on paper. This allows all the involved parties to come together, encourages sharing experiences, and highlights day-to-day problems. The attitude adopted during this exercise is crucial: the goal is to build trust among all stakeholders to foster open discussion of issues, ultimately speeding up their resolution, as the problems identified in the VSM lead to action plans.

Warehouse automation is keeping pace with the changes facing the supply chain. Discover how Exotec’s Skypod system improves warehouse performance by automating intralogistics processes.

The management techniques presented in this article are taken from the book La boîte à outils de la supply chain (The supply chain toolbox) by Alain Perrot and Philippe Villemus, published by Dunod.