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Volume 7 (2024-25)
Each volume of Journal of Supply Chain Management, Logistics & Procurement consists of four quarterly 100-page issues.
The Articles published in Volume 7 include:
Volume 7 Number 1
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Editorial
Simon Beckett, Publisher -
Practice Papers
The demand planning renaissance: A data-driven approach
Piotr Jasiński, Global Senior End-to-End Supply Chain Manager, Carlsberg Group
This paper analyses how demand planning in supply chain management is changing through the use of data-driven methods. It emphasises the need to move from traditional, reactive strategies to proactive, data-centric approaches that can predict trends, respond to changes and make informed decisions quickly. It starts by outlining a common supply chain challenge and stressing the importance of agility and responsiveness in demand planning. The paper also points out the drawbacks of manual forecasting and the advantages of using advanced analytics, artificial intelligence (AI) and real-time data to enhance forecasting accuracy and operational efficiency. Readers will gain insights into the key components of data-driven demand planning, including the integration of various data sources, the application of machine learning (ML) for accurate forecasting and the strategic implementation of exception-based management (EBM). Practical examples, such as automating forecast phasing and utilising suppliers, inputs, process, outputs and customers (SIPOC) process architecture, demonstrate how technology and human expertise can collaboratively enhance demand planning processes. By delving into the synergy between automation and human insight, the paper emphasises the balanced approach needed for effective demand planning. It also introduces unconventional forecasting methods like probabilistic forecasting and reinforcement learning, providing readers with a comprehensive understanding of advanced forecasting techniques. Overall, readers can expect to learn how to implement data-driven strategies to achieve improved forecast accuracy, optimised inventory levels, enhanced customer satisfaction, increased profitability and greater business agility. This knowledge equips supply chain professionals with the tools to navigate the complexities of modern supply chain management and drive continuous improvement in their organisations.
Keywords: data; forecasting; analytics; agility; automation; efficiency; data-driven demand planning; supply chain agility; forecasting accuracy; advanced analytics; exception-based management; automation in demand planning -
The role of AI and emerging technologies in global trade compliance
Suzanne M. Richer, Managing Director and Jonathan Canioni, Co-founder and Director, SC Strategy & Sustainability, Supply Network Consulting Group
Artificial intelligence (AI) in global trade compliance is evolving rapidly, notably in classification, with the potential to unlock productivity, expand expertise and improve speed, reliability and accuracy. Due to its potential, AI is met with high expectations and sometimes apprehension, as there is a lot of uncertainty about what constitutes AI and how it will affect global trade stakeholders. The aim of this paper is to demonstrate how AI will likely affect customs agencies, importers/exporters, service providers and compliance managers. By using examples and case studies, the paper explains: 1) the role of AI expert systems (ES) that use machine learning (ML) and natural language processing (NLP); 2) AI’s potential and limitations in sourcing compliance knowledge for streamlining and automating global trade compliance activities; 3) the importance of upskilling compliance managers and compliance teams to successfully deploy AI, mitigate risks and better manage the global trade compliance process; and 4) our six steps for successfully implementing AI in your global trade compliance department. You will learn how AI can be valuable in performing your job and meeting your goals, if it is kept within its range of capabilities. By such measures, you will be able to obtain the advantages presented by the use of AI, while mitigating its very present risks, some of which are known and many of which are unknown.
Keywords: artificial intelligence; AI; supply chain; digital transformation; generative AI; GenAI; trade compliance -
Choosing the right sourcing model for third-party logistics outsourcing agreements
Kate Vitasek, Faculty, Graduate & Executive Education, University of Tennessee and Andrew Downard, Founder, Collaborative Impact Advisory
Modern outsourcing is more than a typical make–buy decision. Rather, there is a wide range of sourcing business models that today’s practitioners can choose from. Unfortunately, the fundamental nature of how goods and services are procured is not keeping pace with best practices of tapping into more mature sourcing business models; many business professionals wrongly assume that a transaction-based business model is the only way to architect a supplier contract. This paper provides an easy-to-understand framework for classifying the various contracting approaches along a sourcing continuum. A key goal of the paper is to help organisations understand the various models and see examples of how they are used in practice
Keywords: sourcing; sourcing business models; logistics service provider (LSP); third-party logistics (3PL); supply chain management (SCM); outsourcing; Vested outsourcing; performance-based contracts -
Digital transformation of procurement: A supply chain risk perspective
Kamil J. Mizgier, Founder and CEO, SciRisk
In an era marked by geopolitical tensions, global supply chains confront challenges that demand a proactive approach to risk management. The success of digital transformation relies on enhanced collaboration across functional areas and robust technological support. Leading companies are integrating supplier relationship management with risk management capabilities while leveraging digital tools for supplier risk intelligence. The adoption of data analytics tools enhances supplier visibility and facilitates the transformation of raw data into actionable insights. This approach allows for more targeted sourcing strategies that align with global regulatory changes. Moreover, the implementation of economic supply chain risk capital alongside modern supply chain finance solutions empowers companies to define their risk appetite, allocate risk capital to business units and assess performance on a risk-adjusted basis. This paper outlines a comprehensive approach intended to equip organisations with the tools and insights necessary to effectively manage the complexities of modern supply chain risk dynamics.
Keywords: risk management; supply chain risk; digitalisation; procurement; economic capital; decision making -
Shift-left in your fight against supply chain fraud
Norman Katz, President, Katzscan
Supply chain operations rely upon various supply chain software systems, centred around the enterprise resource planning (ERP) system. Traditional and still widely utilised and relied-upon audit techniques have addressed the issue of finding problems — particularly fraud — typically too late after they have happened. Inasmuch as the ERP system is considered the business system of record, it may not be the system of origination for every supply chain transaction, meaning that fraud examination needs to look beyond the ERP system and notably before the ERP general ledger. The closer to a transaction’s point of origin the unusual behaviour can be detected, the sooner the outlier issue can be fixed, and ideally averted in the future with the right corrective actions taken then and there. This all helps to prevent the problem — the bad data, the offending transaction, and possibly the incorrect goods — from travelling through the supply chain and manifesting into something worse. Ramifications can include knock-on effects to data analysis, impacts to decisions, passing bad information to supply chain partners, conveying the wrong goods and material effects on financial statements. This paper presents a supply chain perspective that reveals just how much control an enterprise really does have over its supply chain transactions, showcases how reactive fraud discovery methodologies remain firmly in place, and offers a more proactive business model that leverages what most companies already have to improve internal controls and decrease incidences of fraud.
Keywords: artificial intelligence (AI); supply chain; fraud; enterprise resource planning (ERP); electronic data interchange (EDI); barcode; automatic identification; radio frequency identification (RFID) -
Looking beyond disruption to build agile and resilient supply chains for the future
Mark Holmes, Senior Advisor for Global Supply Chain, InterSystems
The events of recent years, ranging from geopolitical tensions and global health events to labour shortages and economic crises, have highlighted significant vulnerabilities within global supply chains and emphasised the need for agility and resilience. Recent studies referenced in this paper, including the ‘Global Business Optimism Insights’ report, underscore that while large businesses tend to prioritise strengthening their supply chains, smaller businesses are often more focused on customer base expansion, potentially risking operational robustness. This approach could jeopardise customer satisfaction due to failures in meeting on-time, in-full (OTIF) delivery metrics, leading to potential financial penalties and customer dissatisfaction. With that in mind, this paper aims to help supply chain organisations understand how they can obtain the agility and resilience needed to weather ongoing disruption and futureproof their operations. It provides recommendations on how this can be achieved, pointing to access to trusted, real-time data across the supply chain network as a critical component. The paper also identifies, however, that many supply chain businesses struggle to obtain this access to data for rapid and informed decision making. Research from InterSystems finds that this data challenge is further complicated by a lack of end-to-end supply chain visibility, which is often exacerbated by data silos created by disparate systems and manual processes. These visibility challenges negatively affect key performance indicators such as OTIF metrics and restrict an organisation’s ability to adapt to disruptions swiftly. The paper explores how supply chain organisations can overcome these difficulties, identifying investment in digital supply chain technologies such as decision intelligence platforms as a way in which they can bridge the real-time execution gap and enable supply chain leaders to optimise processes. These platforms integrate real-time data analytics, artificial intelligence (AI) and machine learning (ML) to enhance visibility, decision making and operational efficiency. The paper draws the conclusion that building resilient, future-proof supply chains is crucial for organisations to manage disruptions and capitalise on opportunities effectively. In the wake of ongoing disruption, the paper aims to demonstrate that by adopting the right technological solutions and embracing a cultural shift to data-driven operations, supply chains can transform to better withstand future challenges and move their organisation forward, thus ensuring sustained growth and enhanced customer loyalty.
Keywords: agile and resilient supply chains; futureproofing supply chains; real-time; unified data; informed decision making; digital supply chain technologies -
Case Studies
Revolutionising customer service: Shifting from order management to customer experience
Pieter Van Den Meutter, Director of Transformation Excellence Practice, Bluecrux, Peter-Paul Van Heesewijk, Global Head of Customer Service Experience Adhesives, Henkel Belgium, and Björn Kirchner, Corporate Vice President Global Supply Chain Adhesive Technologies, Henkel
This paper aims to explore the critical transition from traditional customer service to a comprehensive customer experience (CX) approach. A Henkel Adhesive Technologies case study, it highlights how integrating a customer-centric mindset within the supply chain can significantly enhance business performance and customer satisfaction. The paper outlines Henkel’s journey in collaboration with Bluecrux to implement a CX-focused strategy, emphasising the importance of state-of-the-art technology, process optimisation and a people-centric culture. Readers will gain insights into the necessity of understanding customer expectations and the impact of emotional engagement on loyalty. The paper provides practical knowledge on developing a CX transformation programme, including key elements such as digital platforms, process documentation, organisational restructuring and employee training. Additionally, it underscores the importance of performance measurement through customer and employee feedback to ensure continuous improvement. By prioritising CX as a strategic imperative, companies can differentiate themselves in a competitive market, foster deeper customer relationships, reduce churn and drive sustainable growth. This comprehensive approach to CX promises tangible business outcomes, such as increased revenue, higher customer satisfaction and enhanced brand loyalty.
Keywords: customer experience (CX); customer-centric approach; supply chain transformation; customer service optimisation; digital platform integration; performance measurement -
What customers want and need: Bringing consistency, reliability and innovation to the global supply chain
Tom Williams, Group Vice President, Consumer Products, BNSF Railway
Transportation companies must continue to assure customers that they are ready to handle all aspects of their shipping needs, from a quick and safe delivery to environmental transparency of that shipment. This paper demonstrates that no element of the transportation supply chain is immune from that charge, from lorry to rail to ship. Companies like BNSF Railway should be prepared to continue to handle those challenges and look towards the future of what customers want and need by resiliently forging ahead with a customer-first approach through strategic capital investments, a future mindset in technologies that support a more efficient and sustainable tomorrow and providing service offerings to anticipate the needs of the ever-evolving supply chain.
Keywords: supply chain; consistency; reliability; innovation; sustainability; resiliency