Six Key Strategies Essential in Supply Chain Management...
### How to Excel in Supply Chain Technology: Insights from the Largest Private Truck Fleet
#### Six Critical Issues for Successful Technology Development and Deployment
Vijay Cherukuru · October 9, 2024
Traditionally, supply chain organizations have relied on third-party software solutions to manage critical processes such as procurement, warehousing, fulfillment, and transportation. In today’s market, with numerous traditional and venture-backed tech companies serving the supply chain sector, supply chain executives face tough decisions when choosing between building or buying technology and selecting suitable technology partners. While there is no one-size-fits-all solution, executives need to consciously define their priorities and strengths while considering unique supply chain characteristics, technical budgets, and internal talent constraints.
According to McKinsey’s data, less than a third of organizations see the expected value increase during digital transformation. Although companies like Walmart, FedEx, and Maersk have seized technology opportunities by investing heavily to become digitally-focused organizations, there is still room for improvement in building high-performing tech teams that serve dynamic business needs across the broader supply chain industry.
Due to unmet demand during the pandemic, venture capital investment in supply chain tech startups reached an unprecedented $62 billion inflow in 2021. Although funding has stabilized (to $7.9 billion for the first three quarters of 2023), this is a good time to build and purchase supply chain technology. Supply chain leaders have the opportunity to develop a customized technology strategy that considers budget, talent, and negotiation capability constraints while maximizing technological improvements to enhance revenue and profit.
In this article, we explore six key strategies that supply chain operations and tech executives must consider when initiating technology modernization, digital transformation, or innovation.
1. **The Impact of Excellent Technology and Product Leadership Teams**
– Hiring and retaining top product and engineering leaders should be a priority in supply chain technology strategy. Exceptional CTOs have strong industry connections, attract top technical talent, foster a customer-centric and product-oriented culture, create career development paths that reward high performers, and build a high-performance culture.
2. **Product-Oriented Culture**
– Today’s leading consumer tech brands share a common trait—ambitious founders and powerful leadership teams dedicated to launching high-quality products that satisfy customers. Adopting a product-oriented approach means building solutions that allow operators to perform tasks seamlessly every day, eliminating the hassle of using Excel spreadsheets or switching between multiple traditional desktop applications.
3. **Build vs Buy Framework**
– Supply chain organizations have traditionally been highly dependent on technology vendors. In-house tech teams can enable companies to develop and deploy at a faster pace. Identifying use cases that serve core business processes and prioritizing internal team development is crucial.
4. **Selecting the Right Supplier**
– Excellent supplier selection starts with identifying expected business outcomes, key use cases, pain points, and company-specific constraints. It’s important to solicit broad input and engage with at least three to five suppliers to understand their current product offerings, future roadmaps, engineering talent strength, and vision.
5. **Creating a Win-Win Ecosystem with Technology Suppliers**
– Investing in critical systems typically means establishing relationships with chosen vendors for over ten years. By forming strategic partnerships with suppliers, you can influence their product strategies, help them win new business through positive reviews, and encourage ongoing investment to solve emerging issues.
6. **Encouraging Innovation and Motivating Core Technology Development**
– Executives should empower their teams to build flexible, customer-centric cultures focused on iterative development and specialization in best discovery, product management, and engineering practices. Encourage innovation sprints and hackathons so that teams can focus on creative solutions beyond daily development.
### About the Author
_Vijay Cherukuru is the Product Lead for Walmart GoLocal, an end-to-end delivery-as-a-service platform. He previously managed technology for Walmart Trucking, America’s largest private fleet. At Walmart, he led initiatives for driver pay, trailer and truck telematics, safety, and scheduling optimization products serving over 15,000 drivers and more than 100,000 assets in the Walmart Private Fleet. Cherukuru also pioneered the concept of a connected asset platform, collaborating with leading ELD, trailer, and sensor companies to enhance digital visibility for Walmart’s fleet trailers, trucks, and physical assets._
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Source: New SCMR
