How might these types of tech solutions shape the future of the supply chain?
Shutay: Supply chains need to react faster and be informed with just-in-time data. Some of the latest technology solutions can scale in real-time, helping to make better decisions and increase transparency. At this stage, automation is a requirement for success and can be facilitated using digital and analytical tools. We’re already seeing technology shape the future of our industry, allowing for a more nimble and well-orchestrated system.
Abrams: The future of the supply chain is digital. There isn’t any debate on that. There is slowness because it’s costly and you have to change processes, in some cases very dramatically. There are plenty of corollaries, such as the financial industry. When financial institutions shifted to a complete digital framework, it opened up the possibility for transactions that can be executed in real time without manual or paperwork delays. In supply chain management, that same thing will happen. But how quickly it happens will be hard to predict. Companies have a lot of data now, but people still may not trust it and allow their gut to override what the analytics tell them. Humans exhibit more conservative, fearful tendencies when approaching dynamic situations. Companies are going to have to get more comfortable trusting analytical information. Machines are good at providing reliable analysis, but they’re only as good as people’s ability to heed that machine-driven advice.
When it comes to supply chains, how do you think business leaders can strengthen relationships between their companies and manufacturers and consumers?
Shutay: As a tech-forward third-party logistics provider, my thoughts go to continued investment in system connectivity and visibility platforms. The more information groups can share in an automated fashion, the more it opens the door for meaningful interactions across the board. For example, the more advanced notice you can give a logistics provider, the more opportunity to optimize for lower freight rates, consolidate to fewer shipments, mode shift to reduce carbon impact, etc. On the consumer side, even with the increased pressure for faster delivery, we’ve seen a willingness to delay a multi-package delivery if it means everything can arrive at once. Shipment visibility is top of mind for our customers, and with all the disruption we’ve seen, everybody needs as much real-time tracking as they can get so they can pivot and adjust. I think people tend to be forgiving if they have transparency, and transparency requires more digitization.
Holub: I’ll add that nothing strengthens a relationship more than getting to know the people you work with. Take time to meet with your partners on a regular basis. Be open and honest with your feedback, ask questions, and listen to what they have encountered. At Clune, we regularly engage with our clients so we can thoroughly understand their vision for their project. This allows us to evaluate material and equipment quantities required to fulfill these build-outs. Once we are able to establish quantities, our teams can provide current lead times and associated pricing. We can then compare this information with the master schedule and advise our clients on when to place an order, enabling them to stay on schedule. With regular communication, both sides come out stronger, with far more effective information for the end users.
Chicago serves as a primary hub for the movement of goods in the U.S. What role do you think the city might play in building the supply chain of the future?
Holub: Chicago is the third-largest city in the country, centrally located in the U.S., with air, water and ground transit at our disposal. I believe everyone in the Chicago market needs to build up the supply chain of the future by specifying and ordering locally or regionally made products, whenever possible. This minimizes the risk of delivery delays that come with ordering large quantities of materials from foreign manufacturers.
Abrams: So much of Chicago’s warehouse and rail capacity was built up because the city is a logistics hub–a nexus largely characterized by the physical side of the supply chain. A very strong argument can be made that Chicago is the exact right place to transition from the physical side of the supply chain that we’ve been dominating for a couple hundred years into a dominant position in the movement of the digital side of product and product information. It’s not a stretch.
