Posts tagged operationalinnovation

Moving Towards a Circular Economy

When you think about accelerating impacts and long-term solutions to current supply chain challenges that impact the 3P’s (people, planet and profit), we need to adopt and develop sustainable frameworks with a holistic life-cycle perspective. There is a ton of innovation happening in the CPG space (Levi’s, Unilever, PepsiCo, etc.)

Shifting from the current ‘take-make-waste’ linear model to the circular economy is critical for businesses to continue to thrive and meet society’s needs. Waste volumes are projected to increase from 1.3 to 2.2 billion tons by 2025, and with nearly 9 billion consumers on the planet including 3 billion new middle class consumers by 2030. The challenges of addressing waste and meeting increasing demand are unprecedented. Therefore it is imperative businesses continue to re-evaluate raw materials, design, manufacturing, consumption, and end of life to keep materials and products continuously flowing through closed loop systems.

How is your company innovating in product life cycle management from design and inception to sustainable product packaging? How are you personally adopting a sustainable mindset in your home, the daily choices you make as a consumer to move toward a circular economy? The bigger question is how are YOU INFLUENCING this change?

Blockchain: Revolutionizing the Global Supply Chain by Building Trust and Transparency

Introduction

The history of Supply Chain Management has evolved since its’ roots in the early 1900s. From improving labor processes of basic material handling and freight transportation, to more sophisticated approaches of balancing cost and efficiency trade-offs, the concept of a supply chain is no longer siloed. It requires integration of supplier-customer relationships, process synchronization, and data harmonization in a complex, dynamic network that is susceptible to vulnerabilities in a global environment. Critical processes to this relationship include real-time communication, collaboration, trust, and transparency that yield mutually beneficial outcomes and competitive advantage. In today’s world, there is a growing prevalence in leading firms advancing toward the adoption, development and implementation of Blockchain technology as a backbone of business operations. This case dives a bit deeper into Blockchain, a novel technology with the strong potential to revolutionize the Global Supply Chain. The goal of this analysis is to discuss: 1) the key technical and economic aspects of Blockchain, 2) the current Blockchain innovators, barriers, and obstacles to Marketplace acceptance, 3) the business case for Blockchain, and 4) future applications and implications of Blockchain technology.

Click here to read the research: Blockchain_Revolutionizing the Global Supply Chain by Building Trust and Transparency

Operations or Supply Chain Excellence?

I’m sharing great insights from Innovation Enterprise via Micha Veen who explains simple tips to master supply chain excellence pinned Operational Innovation.

Source: A Refreshing Innovative Approach To Supply Chain Excellence | Articles | Chief Supply Chain Officer | Innovation Enterprise 

Operational or Supply Chain Excellence has been one of the buzzwords that is often heard around senior Supply Chain Execs. However, is excellence the right terminology, or do we need to rename ‘excellence’?

Due to globalization, continuous creation of new small ‘global’ businesses that can compete with established organizations, leading supply chain organizations have started to look beyond ‘operational excellence’, best-in-class, benchmark data and industry metrics, towards using a combination of their own internal and tailored external relevant data to continuously review, assess, and adopt evolving leading-edge processes, technologies and behaviors to stay ahead in this ever increasing competitive business landscape.

This new approach, named Operational Innovation, has become an effective methodology to deliver transformational impact through the following elements…

Innovative solution design

Instead of spending a lot of time and effort in designing the optimal operational and supply chain solutions, successful organizations focus on creating a solid solution foundation, which is constantly reviewed and improved with cross functional teams to deliver cross-divisional, fit-for-purpose solutions.

Close collaboration

Instead of phased hand-offs between subject matter experts, technology specialists, operational teams, sales, finance, etc., leading innovative supply chain solutions should be created through continuous close collaboration with all impacted process participants at every stage of the supply chain journey.

Use of Robotics and Blockchain Technologies

A recent article (How will manufacturing robotics change in 2017) describes how robotics will change the industry as early as 2017. The article describes how by 2019, 35% of leading companies in logistics, health, utilities, and resources will start implementing robotics to automate their operations. Additionally, supply chain blockchain technology has started to be utilized in supply chain organizations to deliver additional benefits. A recent article describes clearly the impact that Blockchain has on Supply Chain.

End-to-end Solution integration

The key to delivering true Supply Chain Innovation is the manner in which organizations integrate end-to-end processes, technologies, data, and internal vs. external organizational units. Due to the external focus on innovative technologies, many organizations are still only focused on technology integration, but leading businesses have started to explore how different cloud solutions can be integrated across their partners and customers, creating hybrid learning organizational models which go beyond the traditional joint venture organization models.

Continuously generate value

In supply chains it’s crucial to continuously generate value. Through the use of innovative technologies, solution partnerships, operational models, etc. leading supply chain organizations are known to continuously review, adapt and improve their supply chain environment to deliver operational innovation. It allows supply chains to continuously deliver ‘new and improved’ excellence.

In today’s world, Supply Chain Excellence is not enough. There is no ‘end-station’. It’s critical for supply chain organizations to adopt an ongoing innovation journey, which requires people with the right mindset, experience levels, attitude and curiosity to deliver supply chain innovation….

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The Amazon vs. Retail Battle

 

Source: The Amazon vs. retail battle: Explained 

It’s no secret that Amazon is revolutionizing the retail industry. But what does that actually mean?

Which retailer is Amazon targeting now? Amazon newest target isn’t a retail chain at all — it’s your local convenience store.The company rolled out a new service today called Amazon Instant Pickup, which lets customers order basics like chips, soda and toothpaste. You can then pick them up from an Amazon locker in just two minutes.

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Isn’t mimicry the sincerest form of flattery? Not if you’re a retailer that wants to stay in business. Just ask Dick’s Sporting Goods (DKS). Dick’s earnings report disappointed Wall Street on Tuesday. The retailer lowered its full-year profit forecast today because of “a challenging retail environment.” Its stock fell more than 20%. Sound familiar? Last month, Amazon filed a patent to launch a competing meal-kit delivery service. Blue Apron’s shares plunged 11% following the news. And grocery stocks got clobbered after Amazon announced plans to buy Whole Foods (WFM) for $13.7 billion back in June.

Is Amazon a death sentence for traditional retailers? Not necessarily. Retailers like Home Depot (HD) are surviving by selling things you can’t buy on Amazon. Today, Home Depot reported record sales last quarter and bolstered its outlook for 2017. Home owners and professional builders alike still prefer to go to stores to test out home products, especially big ticket items like flooring and appliances.