Jabil Explains Digitized Supply Chain Journey

Earlier this month, a bevy of new enhancements to its procurement capabilities were recently introduced by Jabil, which are designed to minimize risk, optimize production and address spend management.

Additionally, the company introduced its new “Radius Digital Strategy Practice” to assist supply chain managers in navigating complex digital “transformations” while creating business value and brand differentiation.

“The digital transformation of manufacturing is causing a ripple effect worldwide as companies struggle with demand and supply volatility, including shifts in supply ecosystems and shortening product lifecycles,” said Don Hnatyshin, SVP and chief supply chain and procurement officer at Jabil.

John Caltabiano, Jabil's vice president, Supply Chain Management, told SCMR in an interview that the new service will also enable U.S. multinationals to evaluate and penetrate so-called “emerging markets.”

“Twenty-five years ago when China and other nations were opening up to U.S. manufacturers, they had to learn about the complexities of foreign trade zones. But today, it's all about digitization. Everyone is going to be confronted by disruption in the marketplace, but it will be less severe if they digitize their supply chains.”

Caltabiano attended Gartner, Inc.'s recently-concluded annual Supply Chain Executive Conference in Phoenix, AZ. He said that much of the discussion on risk management coincided with talk about finding new customers overseas.

“Our global shippers don't like uncertainty,” he said. “And there's more of that now with the advent of robotics and 3D manufacturing. You want to build a plant with the lowest landed cost, but also have distribution that is closest to consumers. Digitization has altered the game.”

As an example, he noted that Jabil had helped an manufacturer of large farm machinery establish three different sites for 3D operations.

“The advantages were two-fold in an emerging nation,” he said. “The shipper did not need to staff the plant with a lot of engineers, and spend even more time locating human resources.”

Virginia Howard, research director, Supply Chain Research Group, Gartner, concurs, noting that supply chain leaders have always been under pressure to streamline processes, improve quality, keep inventory low and reduce delivery times while keeping costs down.

“Digital technologies are enabling and promoting changes that have a larger impact, greater unpredictability and increased frequency,” she says. “Now, more than ever, high-tech supply chains require digital skills and methods to deliver customer-driven solutions in an on-demand fashion.”

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