Connecting supply chains to corporate strategy

03/30/23 • 14 min

Join Tariq Farooq, former SVP Global Supply Chain at Sanofi, as he speaks with Matt Spooner, Industry Thought Leader at Kinaxis, about how the COVID pandemic and subsequent shortages have caused boards and executives to re-evaluate the importance of the supply chain. They discuss why the supply chain has risen to the top of the corporate agenda, and why it is now essential not just to think about tradeoffs in terms of cost, cash and service, but also to include resilience and environmental impact in the equation.

Summary points:

Recent supply chain disruptions that have stemmed from the pandemic have changed the way that boards and executive teams look at and consider the supply chain. According to Tariq, many consumer-packaged goods (CPG) companies, as well as high-tech companies are beginning to recognize the important role that the supply chain plays. As a result, C-suite executives are bringing more supply chain topics to the table. (2:00)

The perception of the importance of the supply chain hasn’t grown just among C-suites, but also among the average person as consumers aren’t seeing what they want on shelves. Supply chain disruption has become a challenge across many industries.

Some supply chain leaders insist that resilience is important – but that it must also be cost neutral. Tariq states that, while cost is important at any time, there has never been a higher need for resilience than now. While many organizations were previously cutting down on costs by doing things like mono-sourcing, in an age of disruption, many companies, especially large-scale ones, are forced to multi-source to maintain efficiency. Tariq states, “The challenge really becomes how do you shift from where you have been, where cost efficiency might have been the primary objective to being in a situation which is more balanced as we move ahead. [...] I think increasingly what they'll be doing is leveraging some of the efficiencies that come because of digitalization, because of automation, because of all the great talent that's been developed across supply chains and the supply chain networks that they establish to offset some of those incremental risks.” (8:00)

In the past, supply chain professionals were focused on trying to balance the triangle of service, cost and cash. Tariq states that as we move forward, this triangle will look more like a pentagon where you’re trying to balance service, cost, cash, environmental impact and resilience. (8:50)

Click here to follow or know more about the speakers:

Tariq Farooq - https://www.linkedin.com/in/tariqfarooq/
Matt Spooner - https://www.linkedin.com/in/spoonermatthew/

Kinaxis is a global leader in modern supply chain management. Our software is trusted by global brands in every industry to provide the agility and predictability needed to navigate today’s volatility and disruption. For more news and information, please visit kinaxis.com or follow us on LinkedIn.

Summary points:

Click here to follow or know more about the speakers:

Tariq Farooq - https://www.linkedin.com/in/tariqfarooq/
Matt Spooner - https://www.linkedin.com/in/spoonermatthew/

Previous Episode

Turning supply chain disruption on its head

In this series debut, Anne and Angel share their thoughts about the supply chain renaissance and pandemic disruptions. Specifically, the lessons that we can learn from living through such a disruptive period and what supply chain practitioners can do to prepare for a tumultuous future. Join them for a discussion about the importance of organizing lessons learnt from the supply chain triage, emphasizing innovation and delivering results.

Intro to guest

Angel Mendez is a supply chain expert, transformational leader, and visionary with nearly 40 years of experience. He is joining Dr. Anne Robinson, Chief Strategy Officer at Kinaxis, as a guest host in a new series of our Big Ideas in Supply Chain video podcasts. Watch now as they discuss the importance of lessons learned from the pandemic, embracing disruption and creating innovation for the future.

Summary points

As part of the new Big Ideas in Supply Chain podcast series, Angel Mendez is joining Dr. Anne Robinson as a new cohost. Angel is a supply chain expert, transformational leader and visionary with nearly 40 years of experience. Angel is passionate about bringing big ideas forward and sharing his expertise.
The COVID pandemic created significant disruption in supply chain, which continues to be felt today. Angel believes that there are a lot of valuable lessons that supply chains can take away from managing mass disruption, and it’s important to collect and codify what was learned during this time to prepare for an uncertain future. [1:20]
Many supply chain practitioners are wondering what can be done to ensure the effects of disruption aren’t felt to this level of magnitude again. Angel argues that this is an unfair question due to the current unstable environmental and economic landscape. [3:20]
It’s important to take advantage of the crisis and disruption we faced so we can become stronger and benefit from it at the end of the day – so how do we embrace it? Angel suggests that one solution is for the vendor community and practitioner community to come together to figure out how to harness change, and digital transformation can assist with this collaboration. Another suggestion is to continue accelerating innovation because we need more agile and adaptable solutions for an uncertain future. [8:00]
Angel states that a supply chain renaissance began in the early 2010s thanks to the explosion of cloud services and the ability to be API driven, which spurred a period of innovation. [8:00] He mentions that the pandemic forced this innovation to pause, but now, to counter the effects of this disruption, innovation has started to accelerate once again to make sure we’re prepared for a tumultuous future. Anne and Angel believe that a great way for organizations to encourage this is to create a formal innovation team. [10:00]

Speaker Bios

Click here to follow Dr. Anne Robinson https://www.linkedin.com/in/anne-robinson-449225
Click here to follow Angel Mendez https://www.linkedin.com/in/angel-l-mendez-98288/

Next Episode

The CFO’s perspective on recession, inflation and supply chain success

As the world continues to face challenges from pandemic-related disruptions to potential global recessions, it is now more important than ever to equip supply chain planners with the tools and knowledge they need to respond to crisis. Blaine Fitzgerald, Chief Financial Officer at Kinaxis, and Jim Bralsford, Sr. Director of Industry and Solutions Marketing at Kinaxis, discuss the benefits of long-term planning, diversifying costs and minimizing financial impact to business while preparing for the future.

Blaine states that while some geographies such as US, Japan and parts of Europe have gone in and out of recession, there are other financial indicators such as the inverted yield curve that could imply that the recession isn’t over yet. This means organizations still need to take proactive measures to reduce the impact of recession and inflationary pressures on supply chains. To help companies accelerate out of a slow-growth period, Blaine recommends thinking of the supply chain as a strategy center and not just as a cost center; investing in digitalized planning solutions; engaging in short-term vs long-term supply chain planning and diversification of cost. [5:53]

Blaine also talks about the independent academic research that analyzed the financial performance of about 700 companies (including Kinaxis customers) across different industries over the last 3 years. The results showed that financial metrics improved in companies that used a digital supply chain planning solution, with average growth revenue of 3.62%, vs peers that didn’t use a supply chain planning solution, where growth shrunk by 5.77% on revenue. The results of this study have solidified and elevated the rank of supply chains as a strategic function with direct impact on financial success, in the eyes of boards and executives. This pivotal shift is a key learning from the pandemic and recession that CFOs and CEOs cannot overlook going into future business planning. [10:37]

To learn more about Blaine Fitzgerald, Chief Financial Officer, Kinaxis: https://www.linkedin.com/in/blaine-fitzgerald-71a07972, Twitter: @Blaine_Fitz

To learn more about Jim Bralsford, Sr. Director, Industry and Solutions Marketing, Kinaxis: https://www.linkedin.com/in/jimbralsford/