If there was one business lesson coming out of the COVID-19 pandemic, it’s that the supply chains companies depend on are even more susceptible to disruption than anyone thought. Dealers can’t sell something if they don’t have it on the shelf or don’t know when it will arrive. A 2023 study of 2,000 companies from the Capgemini Research Institute found that 89 percent of executives believe supply chain disruption is the biggest short-term risk for their organization — more than any other challenge. That realization has prompted many industries to retool their supply chains as companies seek greater efficiencies and less volatility. As a result, 43 percent of organizations said they planned to increase supply chain investments over the next 12 to 18 months, according to the same study.
Figuring out how to create a more effective supply chain is no simple task – especially in a period of rapid technological development and increased global instability. Fortunately, the FEDA Annual Conference will highlight one of the top experts at the forefront of supply chain research, Chad Autry, the Daniel and Karen Myers distinguished professor at the University of Tennessee’s Haslam College of Business.
Autry has an extensive business background, having been involved in retail and restaurant operations management as well as information technology consulting. His business mindset has carried over into his academic career, during which he has worked with and for numerous professional and civic organizations related to supply chain process improvement, including American Airlines, IBM, Goodwill Industries and multiple U.S. Department of Defense agencies. He has authored more than 70 peer-reviewed studies and has held leadership roles at the local and national levels for the Council of Supply Chain Management Professionals, the Warehousing Education and Research Council and the Supply Chain Management and Industrial Distribution Symposium.
Autry’s current research into supply chain design and strategy goes hand-in-hand with the mission of the Global Supply Chain Institute at the Haslam College of Business, which is to provide companies with meaningful tools and resources. The Global Supply Chain Institute is not a lecture and theory kind of program. From the day students step foot on campus, they are exposed to constant interactions with business professionals at the middle manager and senior level of their companies. In fact, 87 companies — including seven of the Fortune 10 — provide financial support to Haslam’s research with the confidence that it will generate tangible outcomes they can use.
Autry will be sharing key findings of that research with FEDA members in his presentation during the opening session of the conference on Sept. 18. The presentation, titled Integrated Supply Chains of the Future, will explain what integrated supply chains are and how dealers and manufacturers can put them into action.
As Autry describes it, an integrated supply chain is like an orchestra, with every company along the chain playing from the same sheet of music. Integration happens when there is coordination and seamless alignment of various processes and activities across different stages of the supply chain. The goal of integration is to improve efficiency, reduce costs and enhance customer service, but it demands strong communication among all parties involved to ensure a smooth flow of materials, information and products from origin to end user.
When companies can communicate end-to-end within their supply chain, from the producers of raw materials to the end users, the results can be game changing. But getting there requires closer cooperation between independent organizations than many businesses may have had in the past. Supply chain collaboration comprises four components, according to Autry’s research:
- Common goals and objectives
- Joint planning and execution
- Mutual trust and relationships
- Data sharing and technology integration.
Companies that are successful in forming that collaboration benefit from expectable outcomes. Namely, they see greater efficiency and cost reduction, better demand forecasting and planning, better customer responsiveness, higher customer satisfaction, more frequent and effective innovation, and better risk mitigation or avoidance.
Autry’s presentation at the FEDA Annual Conference will demonstrate how dealers and manufacturers can begin to integrate their supply chains and develop the coordination needed to make them successful. Attendees will also learn about other supply chain concepts such as virtual integration and the consequences of disintegration.