Are its predicted trends still ‘mega’?
An updated outlook on the 2023 Global Value Chain Barometer.
Earlier this year, we delved into Kearney’s Global Value Chain, which suggested a point of no return for supply chains. It also identified three key megatrends: climate change; geopolitical tension; and technological step-change. These carry through to its latest Barometer indicating that, while there is still time to make a change, it needs to happen fast.
Kearney‘s Q2 2023 Barometer continues to explore the state of global value chains, with few signs of relaxation in the medium-term, suggesting we are currently experiencing the ‘calm before the storm’, with big structural challenges on the horizon.
What do the next 6 months look like?
‘Resilience has become more than a buzzword; it is a fundamental tool of successful companies and an additional lens through which we need to look at all issues in operations.’
Gen AI is set to disrupt all aspects of operations, including procurement. But, considerable investment is still required.
Companies need to continue to create transparency in their supply chain, to minimise disruption wherever possible, and become more resilient.
Strategies to future-proof operations:
- Invest in advanced planning tools
- Labour shortages – explore measures to attract and retain talent
- Logistics flexibility – have the right tools in place to react and re-route shipments
- Diversification of supply across geographies to boost resilience
- Perform stress testing
- Increase automation
Small changes are a ‘nice to have’, but companies need to fundamentally rethink operations and global value chains if they want to focus on resilience. Upcoming developments and major events within the global economy serve to indicate what will come next, in how companies react to protecting their procurement department, supply and value chain.
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