Supply Chain Leaders Should Use Divergence to Build Operations That Are Resilient Agile and Customer-Centric
Gartner describes the current supply chain situation as “divergence” which represents the expanding difference between original supply chain design and current operational requirements. Supply chain management requires an absolute transformation because divergence creates new priorities in the industry.
Understanding Divergence in Supply Chains
Divergence represents the transformation of traditional supply chain objectives into multiple complex targets.
– Organizations now prioritize customer satisfaction and responsiveness above all else rather than seeking only cost efficiency.
– Organizations now concentrate on building supply chains that serve local and regional markets to enhance speed and minimize risks.
– Supply chain operations have shifted from just-in-time systems to just-in-case approaches for managing uncertain conditions.
– Supply chain leadership has progressed from operational focus to strategic leadership which now occupies vital positions across organizations.
– Supply chain leaders need to transform their operational abilities and create new business partnerships while developing innovative solutions which maintain focus on execution.
Real-World Examples of Navigating Divergence
- HP’s Customer-Driven Supply Chain
HP implemented a customer-driven supply chain which boosted customer satisfaction by 13 points while delivering 95% predictable deliveries and reducing order fulfillment times by more than 55%. (EE Times)
- Brazilian Soy Exporters’ Market Segmentation
Brazilian soy exporters modify their supply networks through targeted segmentation to fulfill different customer requirements. The company achieves strict European regulatory compliance by following these procedures while simultaneously meeting requirements of other markets with their own specifications. (Evidensia)
Strategies for Embracing Divergence
- Rewire Sales and Operations Planning (S\&OP)
The system should provide an integrated view which combines demand sensing and capacity constraints and commercial trade-offs to all stakeholders from executives to ground-level operators.
- Leverage AI and Advanced Analytics
The implementation of AI-powered applications enables organizations to reduce manual work and improve decision-making performance.
- Foster Strategic Partnerships
Organizations should build strategic alliances between technology partners and business integrators and academic experts to gain access to skilled workers and innovative solutions according to KPMG.
- Prioritize Supply Chain Visibility
Supply chain visibility enhancement enables organizations to turn data into useful information which supports better execution and faster responsiveness. (john-galt)
Supply chains need to transition past their established operational structures because divergence has become a fundamental concept in supply chain management. Supply chain leaders who adapt to this change will develop operational structures which deliver resilience and agility together with enhanced customer focus. The path to transformation includes strategic rewiring along with technological investments and continuous innovation dedication.
Our team wants to hear about your organization’s efforts to manage supply chain divergence. Your supply chain insights and experiences should be shared through comments below.
