Main challenges of supply chains today and the challenges of logistics of the future

Conference organized by Kaizen Institute and the Madrid Chamber of Commerce

On April 19, Kaizen Institute and the Madrid Chamber of Commerce organized a meeting in which Deoleo, IKEA and Kuehne + Nagel participated to discuss the main challenges of current and future supply chains.

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The pandemic of Covid-19 It has generated major crises at an economic and social level. The world was not prepared for what seemed like a dystopia. In May 2020, there were reductions in consumption, changes in purchasing behaviors, an increase in online consumption, a reduction in the price of oil and the issuance of money.

 

Before 2020, the heightened focus on cost reduction led to a significant geographic relocation. The closure of Chinese borders generated serious supply problems.

 

Companies and logistics operators are looking for agility in delivery, flexibility in adapting to load peaks and cost efficiency as part of their DNAs.

 

Radical changes in demand behavior have put companies on the ropes, requiring great flexibility in their production, distribution or service. In 2021, a bullwhip effect is experienced, revealing the previous large drop in consumption, and the effect is later reversed.

 

supply chains They face the challenge of quickly adapting to constant changes in consumption patterns, avoiding stock outs, low service levels and increased lead times. The strength of online format It carries a double impact through the change in handling units and the “last mile” supply model, reaching the customer's own door.

 

The sector also faces major challenges such as the high staff turnover rate and the effect known as “Great Resignation.”

 

Companies and logistics operators are looking for agility in delivery, flexibility in adapting to load peaks and cost efficiency as part of their DNA. In addition, they are focusing on sustainability, omnichannel strategies, blockchains and big data to offer speed and freliability in order to connect all the dots.

 

The  speakers contributed their experience, Sabino Urtiaga, National Sales + Marketing Manager at Kuehne + Nagel emphasized that we are in a moment of transformation and management of expectations, fundamentally of the client, and that the main challenge of current logistics lies in providing tangible value, making the sector attractive. . Ana Tristan, Service Fulfillment Operations Manager at IKEA summarized the current situation and the group's way of acting in one sentence, “you have to be able to navigate the unknown”, embrace uncertainty, adapt and communicate, based on people and Alberto Saez, International Operations Director at Deoleo proposes and aspires to highlight the supply chain areas, adding value to brands and emphasizing sustainability. Coincident in the care and training of people.

 

In short, working with different scenarios, training people, reviewing and evaluating processes on an ongoing basis, based on continuous improvement will be the key to overcoming uncertainty and unforeseen events and difficulties that may arise.