Future-Proofing Supply Chains for Sustainability And Resilience

Ricardo Roschel is the Supply Chain Director at Estrela Toys, an 86-year-old Brazilian company. Previously, he was the Managing Partner at R. Roschel Consult, specializing in Management, Corporate Governance, Supply Chain, Regulatory Environment and Government Affairs. With extensive experience, including 15 years as senior operations director at Mattel Toys and 13 years at Avon Cosmetics, he holds a postgraduate degree in International Management from Fundação Getúlio Vargas (EAESP-FGV) and is a Certified Board Member.

Through this article, Ricardo Roschel explores the profound impact of global disruptions on supply chains. He highlights how pandemics, geopolitical tensions and digital transformation have exposed vulnerabilities, catalyzing a strategic shift towards sustainability, resilience and efficiency. Roschel emphasizes the critical role of supply chain leaders in navigating these challenges, advocating for innovative approaches that align with environmental, social and governance (ESG) goals to shape a more sustainable and efficient future for global supply chains.

In an era marked by global disruptions, the fragility of supply chains has been starkly revealed. Pandemics, geopolitical tensions, natural disasters, climate emergencies and digital transformation have exposed weaknesses and sparked a wave of innovation and strategic evolution. Supply chain leaders are now vested with top management's attention and a mandate for tangible change.

This moment offers an opportunity to future-proof supply chains by marrying sustainability, resilience and efficiency with traditional values of cost, qualityand service. The upward trend in supply chain sustainability importance underscores a collective awakening to new priorities amidst shifting challenges.

Recent findings from Supply Chain Dive  indicate a transition in supply chain concerns, with the unpredictable dynamics of supply and demand now at the forefront. This reshaping of priorities compels a reevaluation toward more robust, sustainable and efficient supply chains. Industry professionals are embracing optimization initiatives like route shortening and inventory tuning to align with ESG goals.

Companies are moving beyond cost-effectiveness to evaluate environmental impacts and sustainability practices. There is a growing inclination to prioritize partners with substantial decarbonization and sustainability credentials and those demonstrating a commitment to eco-friendly practices are increasingly preferred.

As the supply chain industry stands at a crucial juncture, the lessons from global disruptions pave the way for transformative change. Embracing sustainability, resilience and efficiency as guiding principles, the industry is moving towards a new era. Inspired by sectors like clean energy, this evolution heralds a future where supply chains meet traditional objectives and actively contribute to a more sustainable, resilient and efficient world.

In 2022, I attended a master's class at Rotman Business School from the University of Toronto—Canada, in which Professor David R. Beatty covered the topic of DIGITAL TSUNAMI. One may consider the topic something that can affect us in the future. However, the reality is that the tsunami has already touched our organizations and lives.Whatever company, regardless of the sector, will need to have, under their priorities, data analytics if they want to survive.

So, whatever new trend, tool, platform, etc., the critical pillarsfor a Supply Chain professional to overcome the challenges and succeed are:

• Strategy
• Identity, values and governance
• Act as guardian of the principles and values of the organization
• Performance of the business, Accountability, Risk management, Controls, Processes and Audit (Compliance)
• Full visibility and monitoringof the economic, financial and operational performance.
• People, organization and innovation.

In addition, it needs to have the below recommendations in the agenda:

• Breakaway services: This creates a set of points of reference around the service that are so different from what the competitors are doing.

• Brings specialties to the customers
• Commitment about no one has executed in that way
• Be the eyes, ears and voice of our customers

• Serving consumers in a sustainable way

• Breakthrough - more understanding of the environments and regulatory issues. Better solutions take out costs and less waste.

• Innovation
• Information technology
• Visibility, transparency and network
• Collaborative model from end-to-end supply chain
• Innovation is the only way to exceed customers’ quality, efficiency and sustainability expectations.

• Capture the momentum – become more innovative and collaborative and drive the agenda. (wait and react is not part of the business)

Lastly, the journey ahead is complex, but the direction is clear. By innovating, partnering, and adapting with a focus on ESG imperatives, we're not just navigating the challenges of today; we're shaping tomorrow's supply chain.