Supply chain design has traditionally been conducted with only one dimension in mind: cost minimization. The conventions of supply chain design date largely from the 1990s. But major technological strides have been made in the years since, allowing for much more complex considerations to be taken into account. So most companies, by using this obsolete approach, are putting themselves at a competitive disadvantage.
Today's episode features Milena Janjevic, Research Scientist at the MIT Center for Transportation & Logistics, and Mike Bucci, Senior Director for Solutions Delivery at Coupa Software. Milena and Mike discuss how they're seeing the field evolve, touching on four big opportunities to take supply chain design from a cost-minimization exercise to an engine to drive value creation:
- Extending the scope of supply chain design
- Incorporating tactical decision making
- Accounting and planning for risk and resilience
- Adapting new technologies and business models
For more, learn about the Supply Chain Design Initiative at the MIT Center for Transportation & Logistics.