In the context of continuous changes in the global economic landscape, supply chain management is undergoing unprecedented transformation and upgrading. According to Deloitte Consulting's 2023 Global Supply Chain Survey, more than 78% of enterprises are promoting the digital transformation of their supply chains, which puts forward new competency requirements for supply chain professional managers. In the post-epidemic era, the construction of supply chain resilience, the reconstruction of global supply networks, and the wave of digital and intelligent upgrading have brought huge development opportunities and challenges to supply chain professional managers.
Traditional supply chain managers focus more on operational efficiency and cost control, but in the current complex business environment, the role of supply chain professional managers is undergoing a fundamental transformation. According to McKinsey's Q3 2023 report, 65% of business executives believe that the supply chain has shifted from a cost center to a strategic value center. This requires supply chain managers to be strategic thinkers and be able to plan from a holistic perspective.
With the concept of ESG (Environmental, Social Responsibility and Corporate Governance) deeply rooted in the hearts of the people, the sustainability of the supply chain has also become a top priority. According to the 2023 Supply Chain Sustainability Report released by the World Economic Forum, more than 82% of multinational companies have listed supply chain sustainability as their top strategic goal for the next three years. This prompts supply chain managers to have the professionalism of green supply chain management in addition to traditional business capabilities.
In the wave of digital transformation, the skill system that supply chain professional managers need to master is rapidly iterating. According to LinkedIn's 2023 Global Supply Chain Talent Trends Report, data analysis capabilities, digital tool application and change management capabilities have become the top three core skills most sought after by employers. Specifically, people who are proficient in supply chain visibility platforms, predictive analytics tools, and automation solutions are most sought-after.
According to PwC's research, supply chain management using artificial intelligence and machine learning can help companies reduce operating costs by 25%-45%. This requires supply chain managers to not only understand the use cases of new technologies, but also have the leadership to lead their teams to embrace change. More than 60% of Fortune 500 companies have made digital transformation experience a prerequisite when recruiting supply chain executives.
The global pandemic has made supply chain resilience a key concern for businesses. According to Gartner, 75% of companies will invest in building more resilient supply chain networks by 2025. This puts forward higher requirements for supply chain professional managers: they must have the ability to respond quickly and deal with crises.
In Procter & Gamble's supply chain resilience improvement plan implemented in 2023, it maintained a 98% order fulfillment rate in the face of raw material shortages by establishing a multi-source supply system and a flexible production network. This case illustrates that supply chain managers need to establish a sound risk early warning mechanism and formulate corresponding emergency plans.
In the context of geopolitical changes and the reshaping of the trade pattern, the global supply chain network is undergoing a deep reconstruction. According to the Boston Consulting Group, by 2025, more than 40% of the world's manufacturing companies will adjust their supply chain layout. This creates new development opportunities for supply chain professional managers with an international perspective.
For professional managers who are interested in developing in the field of supply chain, it is recommended to focus on cultivating the following capabilities: First, it is necessary to continuously improve digital cognition and application capabilities, including the understanding and application of new technologies such as big data analysis and artificial intelligence. Second, it is necessary to strengthen cross-cultural communication skills and be able to navigate the global supply network. Finally, it is necessary to establish systematic thinking and be able to grasp the key nodes in the complex supply chain ecology.
Looking forward to the future, supply chain professional managers will play an increasingly important role. With the development of new technologies such as the metaverse and blockchain, the Digital Twin Supply Chain will become a new trend. IDC predicts that by 2025, 60% of the world's manufacturing companies will deploy digital twin technology, which will bring new learning topics and development opportunities for supply chain professional managers.
oguz@flowbase.com