In this discussion, Demi Obayomi, vice president of Sapphire Ventures(a venture capital company focussing on enterprise software startups), discusses the mainstreaming of supply chain visibility, the critical role of the customer experience, the need for comprehensive risk management, investing in optimization to eliminate waste, and the importance of data interoperability.
The customer experience is becoming “critical to survival,” he says. The relationship between retailers and shoppers is tenuous, with the latter willing to cut all ties in the event of lost or late orders.
“Logistics, at the end of the day, is a service business,” - Demi Obayomi
Digital technology makes it possible for customers to receive constant updates on the status of their orders. “Digital-first” merchandisers are changing the nature of the game, and traditional players are being forced to match their capabilities.
Risk management is at the top of corporate agendas these days according to him. “It’s a prerequisite for resilience,”. Tough lessons were learned during the pandemic about the consequences of sudden factory shutdowns or logistics failures. Supply chains today need to know, not just the state of their manufacturers, but whether raw materials are flowing smoothly to the plant.
For many years, businesses have sought to eliminate waste from their supply chains. The problem is especially acute in logistics, with too many trucks running without loads.
“Companies need to figure out ways to optimize their routes so they no longer have empty trucks,” - Demi Obayomi
Nucleus couldn't agree more here. Our whole 4PL Supply Chain as a Service business model is all about supply chain optimization. Our multiple-customer, multi-carrier platform allows us to optimize on an ongoing basis.
The last trend Obayomi talks about is the pressing need today for data interoperability. Shippers and their service providers might have multiple information systems for various modes and products. They need to link all of the applications that make up a supply chain, so that data can be easily shared among all partners. Nucleus does this through the use of APIs.
Source: Supplychainbrain