When we talk about how we can make our supply chains better, we almost always think of what the government can do: address traffic, reduce regulatory burdens, promote investment, that sort of thing. I realized this when I put the finishing touches on the cover story for the latest issue of our Supply Chain Philippines magazine: our vision for world-class supply chains mostly hinges on increased investment in infrastructure as well as on regulatory reform, which is the domain of those in the public sector.
But then, change is not a two-way street. A lot of the work needed to keep our supply chains moving lies with us – the businesses across the supply chain, from manufacturers, retailers, logistics providers, and everyone else in between. Yes, I have always said that we can only do so much, that we are constrained by prevailing business conditions (which the government plays a key role in fostering) and our pursuit of profits. But – as demonstrated during our recently-concluded 2022 SCMAP Supply Chain Conference a few weeks back – it is important that we make our own steps too, particularly as the nature of our supply chains continue to evolve. I’ll summarize them in three bullet points.
Always think like your customers. This should be easy, because we are also our own customers – the end point of the supply chains we work hard to keep moving, evidenced by our every trip to the grocery, or every time we open our preferred shopping app. We have to keep our customers’ concerns at the forefront if we are to build supply chains that are responsive to their needs, and then some.
For example, we talk a lot about the boom in e-commerce and how it has upended our logistics plans and distribution networks. While it was initially fueled by COVID-19 restrictions, Filipinos came to appreciate the ease of access and wider choice that comes with online shopping – not to mention the better visibility of where orders are at a given time. As our customers broaden their retail mix, our role is to make sure our products are where they are expected to be, whether it be the sari-sari store or a phone screen.
Our customers’ concerns vary, and making sure these are addressed can go a long way in ensuring effective supply chains. Younger consumers, for one, are increasingly conscious of the provenance of what they buy, and its contribution to the state of our environment. But perhaps the more pressing concern for all of our customers is increasing cost: with inflation still soaring, they are now faced with the decision of whether to buy less of something, or shift to something more cost-efficient. Every decision that impacts our supply chains’ day-to-day, from the delivery trips we make to the technologies we deploy, contribute to this cost question.
Your people are your most important resource. While our focus has been on embracing digitalization as (part of) the answer to the many disruptions we see across our operations, we should remember that whatever new system we deploy is only as good as the people behind it. (And I say this even in the case of fully-automated warehouses we see in other countries: there’s still a lot of human-led input needed to make it all work.)
The pandemic has brought forward concerns surrounding employee welfare, from whether we can make hybrid work, well, work – not always possible, especially in warehouses – to how we can better support their mental health in this time of increased uncertainty. But one critical aspect of taking care of our people – an aspect that we’ve long had a grip on – is providing them with the means to step up their career ladder, further improve themselves, and empower them to contribute more at work. While work is under way to expand options for career advancement and training, we have to address an all-too-common mindset: that training is an unnecessary expense that we can’t guarantee will benefit our company, especially if the employee leaves for pastures anew. So, some provide training, but with restrictions on company tenure that can demotivate employees. Others don’t at all. If we are to build better supply chains, we have to provide everyone the opportunity to contribute – and it starts with a deeper knowledge of how things work.
Better advocate for ourselves. The supply chain profession as a whole finds itself in an interesting position these days: thrust in the spotlight after years of working quietly in the background to keep things moving. Between “supply chain crisis” being used as an explanation for everything from rising prices to product shortages, and a renewed resolve to address long-standing issues for the sake of global economic recovery, supply chain has never been sexier.
And yet the scope of supply chain as we know it – not just limited to the physical movement of products and capital, but pretty much a way of looking at how businesses operate and serve its customers and stakeholders – means it can be overwhelming for some to fully understand the impact of addressing our profession’s issues on many of our problems. This is why it’s critical that we in supply chain give ourselves a louder voice, especially now that more people are paying attention to us. A good way to start is to talk with our other colleagues in different parts of the supply chain, all so we can get a grip on how our different functions contribute to a whole that, in many respects, is more than the sum of its parts.
Again, a deeper knowledge and understanding of what we do, and its impact to our partners and customers, allows us to better speak out for our supply chains – and, hopefully, bring forth the changes we have long worked and called for.
Previous column: A Pep in its Step
Henrik Batallones is the marketing and communications director of SCMAP, and editor-in-chief of its official publication, Supply Chain Philippines. More information about SCMAP is available at scmap.org.
