Deloitte: How supply chains can thrive post-COVID-19
Lessons learnt during the pandemic looks set to shape today’s supply chains and how they deal with uncertainty in the future, according to consultants Deloitte Insights.
According to Deloitte’s report, Looking beyond the horizon; Preparing today’s supply chains to thrive in uncertainty, COVID-19 demonstrated the power of interconnected, digital supply networks (DSNs) to help organisations to anticipate and respond to unexpected changes and minimise their impacts.
“While COVID-19 certainly caught the world unprepared, the fundamentals of what it will take to compete in the post-pandemic world shouldn’t,” commented Deloitte.
“The seeds for change were sewn long before “social distancing”… those supply chain organisations that can embrace the new normal, invest in the future and embrace interconnectivity and transparency could be best positioned to thrive.”
As part of Deloitte’s Respond, Recover, Thrive supply chain series, the new paper looks at how organisations can revisit their supply chain strategies considering what they have learned during the pandemic. “This will allow and prioritise the capabilities they expect to require going forward to thrive in this new normal,” comment Deloitte.
The report calls on supply chain leaders to focus on three key areas:
- Shifts in reality - recognise shifts in customers, business operations and technologies, ecosystems, and workforce
- Thrive amid shift - assess your organisation’s ability to thrive amid these shifts
- Position to thrive - position the organisation to thrive by taking tactical steps
The report suggests the crisis helped accelerate shifts in what customers value, how customers buy, and how businesses need to operate differently to meet customer requirements and earn their trust and loyalty.
Key supply chain shifts in the “new normal” are identified as:
- Meeting evolving customers values and product service requirements
Leaders should evaluate their ability to market and sell their products and services in the post–COVID-19 world. The report poses a set of questions supply chain leaders should ask relating to serving the connected customer, customising product or service and positioning for productivity.
“The answers to these questions focus on the intersection of supply chains, new product development, customer strategy, sales, and finance. Organisations should take a renewed end-to-end look at their customers, products, and operations through a “cost-to-serve” lens and make informed choices that balance cost and effort with value, perceived willingness to pay, and sustainable business growth,” comment Deloitte.
- Building trusted, connected supply networks
“The key to automated, predictive, and prescriptive operations in the post–COVID-19 world lies in the interconnectivity of digital tools, physical infrastructure, and their underlying data streams. Tools such as the Internet of Things, cloud computing, and 5G make it possible to create new sources of data from the physical attributes of a supply chain,” says the report.
- Designing supply chains that are optimised for cost, service, and resilience
“Leading organisations can apply advanced technologies to fundamentally rethink their supply chains, enhance their real-time understanding of activity in complex supply networks, and leverage continuous scenario planning to optimise the balance of cost against risk and agility of their production capacity footprint,” says Deloitte.
Although designing a supply chain that is both resilient and efficient is challenging the payoff can be a more resilient supply chain, better prepared to weather future disruptions with fewer impacts to cost and service.
- Enabling the future of work in supply chain management and operations
In a Deloitte June 2020 study, CEOs said that they expect a third of their workforce to be working in a full-time remote capacity by 2022 which means manufacturers are likely to spend more on data management capabilities aimed at facilitating remote operations and improving operational efficiency.
“Adapting to these four shifts takes hard work, honest assessments, and a long-term lens on investment. So, what sort of capabilities should supply chain executives consider deploying now as they continue to build out their DSNs in a thriving environment?
“We expect the answer to evolve alongside the technology curve. Leaders can consider multiple actions now to adapt their supply chains to these shifts, so they can thrive in the post-pandemic world.”
Make the supply chain an integral part of the corporate strategy
The report highlights that by making the supply chain part of the business strategy this could ease problems. “Companies should challenge the long-held orthodoxy that supply chains exist simply to meet the commercial needs of the business. Instead, supply chain considerations should become central to business strategy,” comment Deloitte.
Lay the digital foundations to enable corporate strategy
Data has become the new currency upon which success or failure can be measured, says the report. Technology is expensive, but with the rise of cloud-based solutions, executives now have access to lower-cost products and a range of providers which Deloitte point out will drive innovation and nimbleness at a lower cost and faster speed to market.
Identify what (and who) you’ll need to get it done
“Supply chain leaders should take an active role in planning and designing for their organisation’s future of work - particularly with respect to identifying areas for automation within the supply chain and determining where and how to redeploy (and upskill) the workforce, and what skills and capabilities they’ll need to set themselves up for growth,” comment Deloitte.
Seo JungJin: Who is EY’s World Entrepreneur of 2021?
Seo JungJin, founder of biopharma firm Celltrion, which most recently developed an antibody treatment for COVID-19, has been named the EY World Entrepreneur of the Year 2021, becoming the first South Korean in the award’s 21-year history.
Regarded as one of the world’s most prestigious business awards program for entrepreneurs, the EY Entrepreneur of the Year celebrates visionary and innovative leaders from across 60 countries who are transforming the world and fostering growth.
JungJin, who is now honoroary chairman of Celltrion Group, was up against a worthy cast of entrepreneurial competitors, taking the crown from among 45 award winners across 38 countries and territories.
Speaking during the virtual event, JungJin described his own interpretation of entrepreneurship as something that brings together “a group of people toward a common vision, embracing challenges as opportunities and committing oneself to contribute to the greater good”.
Why was JungJin crowned King Entrepreneur?
A South Korean native and now 63 years of age, JungJin founded biopharmaceutical firm Celltrion in 2003. In the nearly two decades since its founding, Celltrion has lived up to its goal of advancing health and welfare for all by developing ground-breaking drugs to treat autoimmune disease, various forms of cancer and, most recently, COVID-19.
The company, which JungJin started with just US$45,000 and five of his colleagues, has since growth to more than 2,1000 employees with sales permits in more than 90 countries and revenues exceeding US$1.69bn.
According to the panel, JungJin’s story is a shining example of the power of an unstoppable entrepreneur to change the world with the pandel moved by both his incredible story and his purpose-driven leadership, innovative mindset and entrepreneurial spirit.
Described by the chair of the EY judging panel Rosaleen Blair as “representing everything an unstoppable should be” from taking on the world’s biggest health care challenges to consistently creating long-term value for his company, JungJin’s story is one of incredible tenacity and perseverance that the judging panel felt most represented the entrepreneurial spirit.
“He’s taken breathtaking risks, both personal and professional, to found Celltrion and grow it into one of the world’s leading biopharmaceutical companies,” says Stasia Mitchell, EY Global Entrepreneurship Leader. “His passion for creating affordable, life-saving health care and flair for tackling global problems has led to many treatments that have helped millions of people worldwide and was especially evident this past year through the creation of a COVID-19 antibody treatment.”
How did JungJin get there?
JungJin's entrepreneurial journey started at an early age when he worked as a taxi driver to get himself through Konkuk University in Seoul, South Korea. After studying industrial engineering, he rose through the ranks of Daewoo Motor Co. before losing his job amid the carmaker’s financial troubles following the 1997 Asian economic crisis.
Following this, JungJin started collaborating with colleagues to explore business opportunities in different industries, though none delivered lasting success. The turning point came after he attended a talk hosted by renowned scholars, which inspired him to focus on the biopharmaceutical sector.
And so he founded Celltrion with just US$45,000 of his savings. The launch of Remsima, credited with being the world's first antibody biosimilar, quickly moved Celltrion up the ranks of the country's fairly underdeveloped pharmaceutical sector. Celltrion followed this success with the launch of drugs for breast cancer and lymphoma that today are being used worldwide.
With ambitions to be the world’s first in different areas, Celltrion has pioneered numerous uncharted areas to great success over the past two decades, most recently responding to the global pandemic by successfully developing an antibody treatment for COVID-19 and working to ensure a timely supply of the safe and effective treatment.
“When I first started, my vision was to help patients gain access to safe, effective and affordable medicines and thereby enhance the quality of people’s lives,” explains JungJin. “The success of Celltrion has enabled me to expand on this while finding new ways to fuel my entrepreneurial drive.”