Supply Web

It has been over four months since the COVID-19 crisis has gripped our world. This exposed the fragility, inequities and lack of redundancies in our material supply chains. As a response, the world is moving through exponentially rapid change and social turmoil amplified by digitization. Organizations are rethinking, responding and reinventing everything to respond to the needs of their customers and employees.

Prior to the Great Disruption, materials flowed in what we thought was an efficient system of supply chains. Goods and services criss-crossed the planet while logistics managers and procurement specialists managed the risks and disruptions through the digital flow of information. The operating systems were built to meet the needs of customers to provide the most amount of goods at the lowest cost options. Supply chains connected companies through win-lose negotiations. Compromises ruled.

We thought it was working pretty well. Until it broke. When COVID the future came fast. Faster than any business was prepared for. The low cost had come at a price. Multi-year roadmaps for digital transformation, sustainability and global expansion came to a head. Nearly overnight, companies froze in place; whatever they had in that moment was all they had to weather an unprecedented storm. Most, if not all, faltered. Companies either found themselves paralyzed by the sudden drop in demand, or a dried up supply. There were no alternative playbooks or clear pivots. The waste built into the chain, previously only sometimes visible, became an anchor.

Everything broke. That is what chains under stress do—they break. They are only as strong as their weakest links.

The companies who are surviving, even thriving during this time, have supply webs, not supply chains. A web is the best way to future proof your previously linear chain. The digital world is a network, a web. Companies who never wish to face this crisis again will retire the concept of a supply chain, and instead adopt a material model that is resilient, a supply web.

Why A Web? 

The world of arachnids is an inspiration. A spider creates her web by linking many threads together. The more threads linked, the stronger the web. Out of crickets and other bugs, at ambient temperatures, the crafty spider creates a silk, a complex composite material that is five times stronger, ounce to ounce, than steel, able, compared to Kevlar, to absorb five times the impact force without breaking. For the web to maintain its structural integrity under force, the material is also highly elastic, stretching up to 40% longer than rubber and bouncing back as good as new. The interconnected structure can withstand wind and the elements. Waste is unheard of. A web begins at the center – what is available locally and then moves beyond the center to acquire needed materials.

Future supply webs will rely on both the amount and strength of partners. This includes: farmers, suppliers, factories, manufacturers, shippers, packagers, retailers, fulfillment centers and more. A supply web allows a company to move in and out of situations dynamically, without sacrificing quality, efficiency or cost. A sustainable supply web does all that, and ensures protection and advancement of people and planet.

In a post-COVID world, no company alone can resurrect their industry. It will take many partners, even adversaries, to work together to find new meaning and market purpose. It will also require collaboration of supply partners, who are now only a fraction of what they once were. Previous competitors will need to band together to provide the capacity, quality and cost optimization needed to save their industries. All parties have to be equal, treated equally, all weathering the storm together. Future systems must be dynamic and have the ability to work across systems, partners and time zones, all in real time, meeting the expectations of the post-COVID consumer.

The Rise Of The Conscious Consumer

A recent Futerra study in the UK and US found “that nearly 80% [of consumers] are willing to make lifestyle changes to stop climate change as big as those they’ve made for coronavirus.” The COVID-19 pandemic has accelerated the need for operational excellence, as it has propelled the conscious consumer into the mainstream economy. There is no turning back for brands who have compartmentalized their ecosystem. No longer can marketing claims sit apart from production practices. Company accountability now encompasses the entire supply network – from the farms where raw materials originate to the consumer packaging used at point of sale.

Brands who are already working to address other complex consumer trends like personalization, omni-channel purchasing and technology enabled experiences—will now have to address their ‘purpose’ claims in an authentic and measurable way. Transparency will become the backbone of any brand story, and without a powerful supply web to support this, brands who fall short will be abandoned.

The Supply Web

A supply web is a network of partners, all intrinsically linked together. One can not survive without the other. The strength of each entity enriches the strength of the whole. For supply chains, this means building a democratic ecosystem centered on the viability of the group. It is initiated by a single entity and then expands out, locally at first, carefully building the foundation. As the core structure stabilizes, it expands. Each connector thoughtfully engages with the other, nimble enough to move and expand.

For companies, it is no different. As brands begin creating their products, they start a journey that will involve numerous other entities that are composed of people and natural resources. As each brand chooses their partners, they should first look locally, where they have the best ability to judge the quality of partner business practices. From there, product needs will dictate where the web expands. Throughout this process, it will be imperative to maintain the same principles and values to ensure all members of the web flow in unison, as the business itself will ebb and flow.

Circularity is a key component of the supply web. It is by nature meant to stay intact, producing no waste. The same goes for brands who are creating goods of the future. There is no room for excess materials or toxic chemicals, polluting natural systems or human bodies.

ReInventing Everything

ReInventing Everything is how we prepare for an uncertain future. Moving from supply chains to supply webs is a key element to creating a diverse, equitable, resilient and frankly much better company.  This is the moment in time where the once impossible is now possible. We can help.

Thank you.

Filed Under By GoodOps

Webinar: Greenwashing

Brands are facing a reckoning.

Greenwashing is as pervasive now as it was pre-COVID. Sustainability marketing claims have spiked, but they don’t always mean action. Conscious consumerism is bringing a tsunami of accountability like never before.

How do brands navigate? How can consumers cut through the noise? And what really drives social and environmental impact in fashion and food?

Transparency, supplier partnerships and ESG innovation are just some of the solutions we explored in our NextGenChef Table Talk.

Our panel:

Watch the full panel: HERE

 

 

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White Paper: Food Systems

NextGenChef’s white paper, The State and Future of the Food System post-COVID-19, explores today’s most pressing questions.

COVID-19 has exposed the weak points in the U.S. food supply chain, raising fears of food shortage among consumers. The disruptions have drawn widespread attention to the problems that entrench the food industry, simultaneously urging the country to reflect on sustainable alternatives.

As consumers alter shopping behavior, suppliers run low on supply, and logistics buckle under pressure, brands who will emerge as winners will be the ones who lead with environmentally and socially responsible operations.

In this NextGenChef whitepaper, the team speaks with eight industry experts across the country, including senior supply chain consultants and CEOs who represent more than 180 organizations to uncover how COVID-19 has changed the food supply chain.

GoodOps’ CEO, Divya Demato, touches upon the importance of DTC food models and how the path to resiliency lies in supplier recovery.

Read on for exclusive industry insights here https://go.aws/2CdRJVU

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Webinar: FASHINNOVATION Worldwide Talks

FASHINNOVATION’s Worldwide Talks 2020 panel on Supply Chain and Circular Economy explores the role of equal justice, standardizing sustainability metrics, power of being an early adopter of ESG and future trends like plant-based materials.

Panelists:

Watch the full panel here: https://lnkd.in/djH-xNv

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A Playbook for Social Justice

In light of current conversations surrounding systemic racism both in our nation and our world, an inextricable link between social responsibility and social justice are coming together. By no means perfect, sustainability playbooks can offer an initial basic framework for #SocialJustice initiatives as executives begin their journeys:

SET GOALS

Set concrete goals that uplift people of color at all levels of the company: board members, investors, c-suite, managers, front-line workers, partners, customers, etc. Promoting marginalized people into power positions, paying them well, providing health benefits, improving educational opportunities for themselves & their children – all have an impact on communities & society at large. Think about areas typically covered under “S” in ESG.

CREATE METRICS

Determine the right metrics to measure results and adapt tactics if initiatives are not working. Work w/community leaders to determine these so they are not done in a vacuum.

DEVELOP A TIMELINE

Set an aggressive & meaningful timeline. To say there are “no great candidates of color” for leadership positions is a total failure in effort. Expand your networks and collaborate w/black & brown leaders who are connected to these communities & can help funnel talent your way.

BE ACCOUNTABLE

Be held accountable. Publish your goals & timeline publicly & update us – the same way we see sustainability announcements. Do a bi-annual report outlining your social justice progress & share your challenges so others can help.

Specifically for Black Lives, here’s how to act now:

  • Invest in black founders.
  • Promote black colleagues.
  • Invite black executives to boards.
  • Hire black people for “office” jobs.
  • Fast track/mentor black leaders.
  • Fund black accelerators.
  • Partner with black founded companies.
  • Buy from black businesses.
  • Cast black actors in ads/media/film roles.
  • Make products that address black needs.
  • Give black leaders awards.

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Why A Sustainable Supply Chain?

The supply chain revolution is here and companies must transform to become socially and environmentally responsible.

Brands face increased pressure from purpose-driven customers, disruptive competitors, concerned shareholders and distressed suppliers. In order to survive – be it a Fortune 500 or a high-growth e-commerce startup – companies must undergo a transformation in how they source, produce and deliver their products and services.

Supply chain sustainability is the backbone and competitive advantage of the world’s most successful companies.

Companies can no longer rely on incremental impact, legacy systems and traditional corporate responsibility. Sustainability with integrity is hard; it requires a clear vision for the future, an understanding of complex ecosystems, and the agile deployment of interconnected strategies, systems and capabilities.

GoodOps makes transformation easy by designing innovative strategies to implement custom sustainability frameworks.

We are the compass for our clients, guiding them to stay one step ahead during a time of accelerating change. We realign and digitally connect supply chain networks across brand values, embedding new ways of thinking and collaborating from the c-suite to the frontline across partners. In parallel, we explore and leverage advanced technologies to explore the best way to make the desired impact on the resources and workers in the supply chain. We empower companies to become strong stewards of our planet and people so they can feel confident sharing an authentic journey with their customers.

Companies that transform into sustainable supply chains will improve profit, streamline operations and mitigate risk.

Customers choose purpose-driven brands over competitors, the most talented employees want to work for them and investors seek their limited risk profiles. End-to-end visibility, from raw material to finished goods, drives accountability and agility, helping brands become true partners in their supply network. Savings and valuable growth opportunities are realized across the extended value chain. And higher quality, socially responsible products differentiate their offering and justify premium pricing.

The key to success is properly prioritizing, organizing and resourcing complex sustainability initiatives.

All companies know they must implement social and environmental initiatives, but many times, this requires sourcing from new suppliers, adopting alternative materials and restructuring supplier contracts; the hard part is knowing where to start and how to execute. In every engagement, we design custom, multi-disciplinary teams augmented by networks of global experts with the necessary experience, skills and pragmatism to ensure results. Applying universal principles, market specific nuance and an agile approach, we scale what works.

We believe transforming supply chains is the fastest way to positively impact the world.

The 17 UN Sustainable Development Goals is a powerful blueprint for brands. Goal #5: Gender Equality, #8: Decent Work and Economic Growth, #10: Reduced Inequalities, #12: Responsible Consumption and Production, #14: Life Below Water, #15: Life on Land and #17: Partnerships for the Goals are just some of the goals brands can begin to focus on today. By simplifying complex sustainability initiatives, GoodOps helps companies achieve the impact they want to have in the world in a meaningful way.

View our services to see how GoodOps helps brands and startups build a competitive advantage through supply chain sustainability. Or send us an email at info@goodops.co to get started today.

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Ethical Supply Chains

At GoodOps, we believe transforming global supply chains to meaningfully address environmental and social issues is the fastest way to change the world. But systemic change is complex and a range of multidimensional approaches are critical to ensure success. We bring diverse groups of supply chain leaders together for intimate salons in order to achieve this goal. Every salon explores the strategies, models and technologies they are applying to create a more sustainable future. Last week, we gathered 20 leaders from Fortune 500s, high-growth startups, international organizations and academic institutions across a range of industries and regions. Our focus was the rise of ethical supply chains.

It is critical that companies improve the lives of their workers and communities through the development of more ethical supply chains. It is estimated that 80% of world trade and 60% of production runs through multinational company supply chains. In terms of global workforce, more than 20% have jobs in a global supply chain. Drilling down into 50 of the world’s largest companies, it is estimated that they directly employ just 6% of the workers in their supply chain. The remaining 94% of their “hidden” workforce is at least 116 million people. Within those jobs, over 50% are estimated to be exploitative with poor conditions, including long hours, dangerous working conditions, forced labor, low or poverty wages and informal work.

Broadly, this group of supply chain leaders who are setting the future of business, culture and government expressed that we may have reached a potential tipping point. A tipping point is defined as a series of small changes or incidents that become significant enough to cause a larger, more important change. The leaders gathered shared perspectives that pointed to a convergence of key trends that were accelerating the rate of change. These trends included increasingly conscious and demanding consumers, shifting executive mindsets, stringent regulations with criminal prosecution of bad actors and accelerated supply chain digitization efforts.

Below is a summary of what the leaders highlighted across these key trends:

  • Companies will no longer be able to avoid responsibility for their end-to-end supply chain networks. Deflecting criticism or risk by saying abuses occurred outside their direct employee base will fall flat and fail to satisfy conscious consumers, employees and investors. Proactive companies are already going beyond 1st tier suppliers to predict and address social issues from materials sourcing through final mile delivery. Most critically, they are directly engaging workers and performing onsite audits to avoid the risks inherent in company or supplier self-reporting where there is no 3rd party verification.
  • Consumers are arguably the most powerful lever in driving adoption of ethical supply chains. They are putting their money where their mouth is by purchasing responsibly made products as well as demanding more accountability from the brands they support. Companies will thrive by reducing information friction and helping consumers make ethical purchasing choices. The leaders also predicted a rise in employee movements, with consumers no longer checking their personal beliefs at the door when they come to work.
  • Governments will establish criminal consequences for brands who allow illegal activity in their supply chain, especially when it comes to modern day slave labor. It was predicted that governments may increasingly hold not just companies but executives themselves responsible for worker wages, equality and safety. In addition, incentives must be created for ethical companies to accelerate compliance.
  • Investors must more consistently check and confirm that the brands they invest in are ethically sourcing and producing their products and services. They must make a commitment to investing in companies that are rigorously audited and disciplined in their approach. It was predicted that the next 2 years will see a rise in mass investment screening tools that will identify shareholder activism opportunities and reallocate portfolios to avoid negative impact or support specific causes they care about. There will be a rise in funds that address supply chain sustainability in particular.
  • Technology solutions are the key to giving companies end-to-end visibility and scaling ethical supply chains. Technology platforms and tools focused on worker empowerment, product traceability, ethical sourcing and risk mitigation will become a core component of any technology stack. The resulting data and insights will be especially beneficial in supporting CEO and brand activism as well as consumer movements.

Companies that wish to lead in the future must take immediate action. First, analyze your industry and extended value chain to identify the greatest risks and opportunities for impact. Next, collaborate with value chain stakeholders to create an integrated roadmap for sustainable change across your strategies, systems, processes and culture. With a clear vision for the future, you can build the necessary capabilities, teams and partnerships to ensure success.

Do you think we have reached a tipping point for ethical supply chains? Want to get involved in the work GoodOps is doing? We’d love to hear from you.

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United Nations SDGs

The United Nations Sustainable Development Goals (SDGs) are an interconnected set of 17 goals and 169 targets that industry leaders are using to drive sustainability efforts. The SDGs seek to protect the planet and improve the lives of every human by 2030. They are a detailed and easy to adopt framework that companies such as Unilever, TOMs and GlaxoSmithKline use to achieve their own strategic priorities while simultaneously addressing more stringent regulations, global pacts and consumer activism. These companies are seeing higher returns on investment, faster brand growth and long-term shareholder value. And the wider economic benefit is potentially massive, as the Business & Sustainable Development Commission projects that embracing the SDGs could generate US $12 trillion of new business value a year – equivalent to 10% of the global GDP forecast by 2030.

Developing a holistic supply chain sustainability strategy using the United Nations SDGs will inspire, attract and retain the customer and employee of the future. Sustainability is no longer a niche business consideration. Studies show that people increasingly expect companies to address social and environmental issues in a meaningful, measurable and transparent way. In a world where people are purchasing goods and making career choices based on this expectation, companies must properly address the impact of their daily operations. This requires moving beyond siloed corporate social responsibility departments and ad hoc social marketing programs. The SDGs are one of the most effective and comprehensive frameworks that can help companies meet rising expectations while improving business performance.

The 17 SDGs are:

  1. No Poverty
  2. Zero Hunger
  3. Good Health and Well-Being
  4. Quality Education
  5. Gender Inequality
  6. Clean Water and Sanitation
  7. Affordable and Clean Energy
  8. Decent Work and Economic Growth
  9. Industry, Innovation and Infrastructure
  10. Reduced Inequalities
  11. Sustainable Cities and Communities
  12. Responsible Consumption and Production
  13. Climate Action
  14. Life Below Water
  15. Life On Land
  16. Peace, Justice and Strong Institutions
  17. Partnerships for The Goals

Companies that wish to lead in the future should take immediate and strategic action to integrate the SDGs across their supply chain networks. By proactively implementing the SDGs across the supply chain – from how they source raw materials to how they deliver finished products to customers – companies can spark customer loyalty, improve productivity, mitigate risk and drive business growth. Most importantly, they can establish a competitive advantage before sustainability becomes a common and core part of every business.

View our services to see how GoodOps can help you build a sustainable competitive advantage by aligning your supply chain network with the UN SDGs. Or send us an email at info@goodops.co to get started today.

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Continuous Innovation

GoodOps is excited to speak at the Home Delivery World conference, April 5th, on “Continuous Innovation: The Future of Supply Chain & Logistics”.  We’ll share 1) industry insights around why companies must put supply chain & logistics innovation at the core of their growth strategy, 2) the key components to successfully deploying a model of continuous innovation that integrates advanced technologies and sustainability frameworks, and 3) a case study on how helped one of the top 5 global supply chains rapidly launch and scale their innovation program.

Home Delivery World highlights include:

  • 2,500 attendees
  • 330 speakers
  • 300 exhibitors and partners
  • 260 sessions across two packed days
  • 90,000 Sq Ft of expo space showcasing the newest technologies including electric trucks, drones, autonomous vehicles, custom chassis and more

Please join us at Home Delivery World (link) using our 30% discount: GOOD30.

View our case study on launching a global innovation program and view our services to see how GoodOps can help you transform your global supply chain & logistics. Or send us an email at info@goodops.co to get started today.

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Operating Models

Companies must transform their operating models to manage the supply chain networks of the future. Leading brands and supply chain providers have optimized linear, rigid and lean operating models with top-down, siloed decision making. However, companies must now compete in a digitally connected, omnichannel landscape where speed and flexibility are critical to success. For many companies, what used to be their competitive advantage is now one of their biggest constraints.

An operating model is the link between corporate strategy and execution. All too often, companies declare bold visions and hire functional leaders, but fail to differentiate their capabilities, strategically organize resources or establish an operational blueprint. Well defined operating models ensure value delivery, plus the ability to effectively counter disruptive competitors, capitalize on growth opportunities and mitigate risk.

Companies must transform their operating models based on the unique realities of their industry, strategy and extended supply network. To do this right, they must keep 7 key areas and questions in mind:

  1. People – What experience and skills do you need across roles and levels to thrive in a digital world? How do you ensure diversity, flexibility, growth and cultural fit?
  2. Process – How do you best realign processes to support core strategic priorities? How do you optimize information flows in a fast-moving, agile organization?
  3. Technology – When do you use cloud-based apps vs. proprietary, purpose-built apps for competitive advantage? How do you balance immediate ROI vs. long-term advantage?
  4. Data – How do you standardize and automate collection of critical data across your network? What tools and dashboards will make that data accessible and actionable?
  5. Governance – How do you ensure decisions are aligned with your strategy? How do you redefine decision making rights and processes to be data and analytics driven?
  6. Culture – What are the principles and values that guide your thoughts and behaviors? How do you inspire and motivate people to stay focused, committed and accountable?
  7. Structure – How do you redesign roles and responsibilities to deploy integrated squads focused on customer journeys? How do you manage across functions and locations?

Successful transformation of supply chain operating models requires an integrated approach. As companies seek to transform their operating model, it’s critical that they think holistically. Fixing one area without addressing the others rarely leads to differentiated or lasting change. Process improvements may realize incremental cost and time savings, but without an associated shift in technology tools and systems that makes data more actionable, or new team and decision making structures, the overall transformation will fail.

View our services to see how GoodOps can help you strategically transform your operating model and lead in a digitally connected, fast moving and complex world. Or send us an email at info@goodops.co to get started today.

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