In 2024, Companies Won’t Win (But Supply Chains Will)

As part of Solutions Review’s Contributed Content Series—a collection of contributed articles written by our enterprise tech thought leader community—Jason Tham, the CEO and co-founder of Nulogy, explains why companies need to work together to improve their supply chains.

As 2023 ends, I’m continually astounded by how each year brings new surprises for us. Often, these surprises come in the form of challenges in our professional and personal lives. For example, the crucible that was COVID-19 has been replaced this year by a bevy of global events, such as geopolitical conflicts, adverse climate trends, and growing economic fears and uncertainties. 

Despite it all, however, we made it through together. And this concept of “togetherness” and collaboration is what I wanted to discuss today. I predict the new year will bring new opportunities for supply chains to win together—and that just might be the surprise (the good kind!) you’re hoping to see in 2024. 

Why aren’t we working together? 

The world of supply chain is no stranger to volatility and uncertainty. Whether you represent a brand manufacturer or an outsourced partner such as a contract manufacturer or co-packer, uncertainty is the bread and butter of your day-to-day operations. You value agility because your teams and organizations focus on being responsive enough to get the job done.  

You and your company often interface with many partners, suppliers, and customers daily. And yet, I believe very few of these parties are truly collaborating to achieve shared goals and success. We are all talking to each other, but we aren’t working together. 

Why do I say this? For example, in 2022, a McKinsey survey reported that “Forty-five percent of survey respondents say that they either have no visibility into their upstream supply chain or that they can see only as far as their first-tier suppliers.” That is an astounding proportion of the supply chain that lacks visibility beyond its four walls—especially when so many parties, especially in the fast-moving consumer goods (FMCG) industry—are supposed to be working together to help bring new consumer products to market.  

So many businesses invest in digital supply chain solutions that focus only on their internal operations. Yet, every day, we are dealing with supply chain partners trying to work together using disparate systems or trying to plan and forecast orders using an asynchronous mix of phone calls, emails, and file attachments. Managing all these communication methods, online and offline, perpetuates a lack of data visibility in external supply chains. 

When I say we are all talking to each other but not working together, this is what I mean. We don’t speak the same language or use the same data. Think of the risks that come with this lack of data visibility: delays in orders, miscommunication, missed deadlines, leading to increased costs, lower customer service ratings, and damaged brand reputations. These potential risks are only magnified by the outsized impact of the Bullwhip Effect upon external supply chains. 

It’s time to start working together 

Data visibility—primarily delivered in real-time or near real-time—is critical for true collaboration within supply chain ecosystems. By working from a single source of data truth that provides timely and accurate information, supply chain planners can schedule, source, and allocate capacity far more efficiently, while service providers can respond to order changes more rapidly and optimize their operations for higher fulfillment rates and better customer service.  

Further, by investing in communicating and collaborating in real-time based on accurate and timely order data, you can foster a stronger sense of trust between you and your partners in the extended supply chain, helping build relationships as the foundation for achieving shared success through supply chain synchronization.  

The industry’s early adopters are already reaping the benefits of digitally enabled supply chain collaboration. According to PWC’s report, “Connected and autonomous supply chain ecosystems 2025. Digital Champions are reaping the benefits of investments into digital supply chains, achieving operational savings of 6.8 percent annually in supply chain costs, coupled with a 7.7 percent revenue increase. They plan to continue investing at even stronger levels of investment.”

The report finds that “Digital Champions are further along in achieving end-to-end transparency, synchronized closed-loop planning, smart logistics, and dynamic supply chain segmentation, enabling them to better manage costs, service levels, and margins.”

Getting to true supply chain synchronization 

How do brand manufacturers and FMCG external supply chains achieve the nirvana of supply chain synchronization? Multi-enterprise collaboration platforms provide the capabilities needed for external supply chain partners to work together. They enable real-time data visibility between brand manufacturers and other partners in their supply ecosystem, providing a centralized source of truth for order data and communication.  

Enabling real-time data connectivity amongst partners in a supply chain network helps all parties respond quickly to disruptions and unforeseen events. When all partners operate from accurate, timely order data, the enhanced level of visibility can enable much faster responsiveness throughout the supply chain network. In addition, the improved data visibility and accuracy shared by supply chain partners can be leveraged for the benefit of all, maximizing capacity, minimizing inventory levels, and reducing lead times. 

Make 2024 your year of true supply chain synchronization 

In today’s complex global supply chains, data visibility is crucial to manage risks and make informed decisions effectively. Collaborative supply chains leverage technology and data sharing to provide real-time visibility into inventory levels, transportation routes, demand patterns, and other critical information. This enables supply chain partners to proactively identify and mitigate risks, optimize inventory levels, and respond to changing customer demands. 

Without visibility, it is very difficult to communicate, let alone collaborate, innovate, or build trust. Visibility enables the connections that make true collaboration happen.mTrue supply chain collaboration is not just a buzzword but a critical enabler of business success in today’s dynamic business environment. It fosters innovation, enhances visibility, improves sustainability, and strengthens relationships.  

As we revisit our strategies and approach 2024, I hope your mindset is one of embracing collaboration and imagining how you and your external supply chain partners can invest in deepening your relationships and winning together.