Rethinking Supply Chain Management: Interview with Bram DeSmet on Modern Challenges and Solutions

Supply Chain College

Today’s discussion, features the esteemed Bram DeSmet, CEO of Solventure and an accomplished author, consultant, and educator. This episode dives deep into the intricacies of modern supply chain management From the 1980s to Today: The Evolution of Planning Structures Bram DeSmet opens the conversation by critiquing the traditional planning structures from the 1980s, which, he argues, are inadequate for contemporary volatile markets. He categorises perspectives within a company into three distinct views: the optimistic (sales), the realistic (supply chain), and the conservative (finance). According to Bram, the existing S&OP processes fall short due to structural deficiencies and the failure to integrate these viewpoints effectively. He calls for a holistic approach to planning that involves the collaboration of sales, marketing, finance, and supply chain for better integration and decision-making. A Call for Integrated Value Planning One of the episode's key takeaways is the proposal to shift from the conventional S&OP to Integrated Value Planning (IVP). Bram advocates for the appointment of a Chief Value Planning Officer who would balance decisions and hold veto power in critical choices. This role would ensure joint decision-making across departments, aligning them towards common business goals rather than individual departmental outcomes. The last pandemic: A Missed Opportunity for Change? The discussion then flows into the impact of C-crisis on supply chain management. Bram suggests that the pandemic was a missed opportunity to drive substantial and necessary changes in supply chain practices. He highlights the psychological barriers and the comfort zones that prevent companies from embracing new, more effective methods. Despite the challenges, Bram remains optimistic about identifying visionary companies that can inspire others to adopt new approaches. The Strategic Importance of Resilience and Sustainability In a fascinating segment, Martin and Bram discuss the need for resilience amid tightening operational constraints. Bram asserts that sustainability goals often drive supply chain changes more effectively than resilience alone. By framing regional sourcing and production under the umbrella of sustainability, companies can achieve better acceptance and results. The Supply Chain Triangle: A Model for Strategic Planning A pivotal concept introduced in this episode is the "triangle of service, cost, and cash" for supply chain managers. Bram underscores the importance of balancing these elements to optimise financial performance. He criticises the common practice of focusing on only one corner of the triangle and urges supply chain professionals to initiate discussions within their organisations about this balance. Leading Indicator Forecasting: A Forward-Thinking Approach Towards the end of the episode, Bram introduces the idea of leading indicator forecasting as a method to enhance demand predictions by looking at demand signals rather than extrapolating recent trends. He shares real-world examples where this approach has mitigated the bullwhip effect and prevented costly investments. Cultivating Cross-Functional Expertise For aspiring supply chain professionals, Bram advises building a horizontal career by gaining experience across various functions like sales, marketing, finance, manufacturing, and logistics. This cross-functional expertise is crucial for enhancing the credibility and effectiveness of supply chain management within organisations. Brams LinkedIn profile: https://www.linkedin.com/in/bramdesmet/ Brams personal webpage: bramdesmet.com Solventure homepage: https://www.solventuregroup.com/ Strategy Driven Supply Chain Book: https://deine-lieferkette.de/strategy-driven_supply_chain * Rethinking Supply Chain Book: https://deine-lieferkette.de/rethinking_sc_book * *affiliate links