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In response to an evolving business landscape, 90% of supply chains are currently reorganizing, or plan to do so in the near future, according to Gartner. This represents a major opportunity to completely rethink operations and move away from the siloed “leg-by-leg” model to an end-to-end, or “orchestrated,” approach to supply chain management.
Traditionally supply chains have been managed tactically, with each stage operating relatively independently. Most businesses today are at a point where they’ve optimized the individual aspects of their operations, such as warehousing, transport and secondary transport, but few take a holistic view of these functions working together.
When the different parts of a supply chain are managed in this way, the emphasis tends to be on cost-cutting rather than “How can we maximize?” Yet without a unified, end-to-end strategy, business leaders are missing out on opportunities for growth and enhancement.
The global volatility of recent years has sharpened minds to the need for operational resilience, flexibility, agility and performance. There’s a growing desire for more integrated and connected services, with businesses turning to digital technologies to transform their supply chains into more strategic assets.
The most successful businesses will be those that can adapt and deliver into markets at speed even when facing supply chain disruption. It’s especially important to ensure that inventory can still be delivered to high-growth markets, with product reaching the right place, at the right time, in the right volume, and in the right condition.
Supply chain orchestration involves synchronizing every aspect of the supply chain, from procurement to delivery. Beyond cost savings, businesses can gain better visibility, meet higher environmental, social and governance (ESG) standards, drive in-market sales, and achieve broader business transformation goals.
Such supply chains are built by implementing solutions that optimize each link, including capabilities that improve supply chain visibility, design better networks and transport flows, enhance risk management, and optimize inventory, supplier and process management.
Next-generation technology, including machine learning and artificial intelligence, are key to enabling orchestration. Digital twins, for example, allow companies to model scenarios continuously, enabling proactive decision-making rather than reactive problem-solving. This modeling can be used in transport, warehousing and inventory management. By anticipating disruptions and identifying new market opportunities in real time, businesses can not only increase revenue but also minimize their environmental impact, boost resource efficiency, and enhance customer satisfaction.
Supply chains can no longer be seen as purely operational — they’re strategic enablers of growth, innovation and resilience. But extracting business value from them requires a multifaceted approach that integrates people, process and technology, through collaboration with partners and data-driven insights. By continuously refining supply chains and adapting to market demands, businesses can begin to improve resilience and sustain long-term growth.
Thorsten Roggenbuck is global head of LLP with DHL Supply Chain.
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