Supply chain-enabled process innovation: How to embark on the journey

From the November 2019 edition of Supply Chain Management Review.

November 2019

We hear a lot about emerging technologies like artificial intelligence, machine learning and robotics. We hear less about one of the enabling technologies that makes the others possible:

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In recent decades, firms have used supply chain management (SCM) primarily for capturing value in supply networks. However, SCM is becoming a prominent means of value creation, especially in commoditized markets where there is less scope for product innovation.

In particular, as supply chains become more fragmented, they are exposed to risks associated with complex information flows and trading partner incentive misalignments. By mitigating or even removing these risks through process innovation, supply chain managers can create value for their customers.

A research project at the Malaysia Institute for Supply Chain Innovation (MISI), a member of the MIT SCALE Network of research centers, looked at how companies can use supply chain processes to unlock customer value. The project identified areas where processes could be improved through innovation and quantified the benefits of these improvements. The analytical approach taken can provide a blueprint for companies that want to follow a similar path to value creation.

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