Recently, we had the privilege of recording three interviews with Jake Barr. In our first video, The evolution of CPG companies and their supply chains, Jake discusses industry dynamics and how supply chains (and the respective technologies to support the supply chain) have changed over the past 10 years. He describes it as “the perfect storm”. As a result, the need for speed and depth of decision making has dramatically increased. There has been a drastic time compression in having to react to the marketplace, and that requires a different technology architecture. In Part 1: An executive's perspective: The evolution of CPG companies and their supply chains, Jake Barr explores the following questions:
- How have consumer packaged goods companies changed in the last ten years?
- How has supply chain management changed for consumer packaged goods companies?
- How has supply chain management technology changed for consumer packaged goods companies?
Jake, a 32-year employee of the Procter & Gamble Company, directed the Global Supply Network Design efforts for the Company, in addition to being the discipline Director for Supply Network Operations. So, as a former practitioner, he has a lot of insight to share. ... please check it out! Notable quotes:
“The speed of which they need to make business decisions today versus ten years ago is dramatically different. It can be measured in a clock speed of minutes and hours versus days and weeks. You no longer have the luxury of buffering with cash and people. Extra people to make decisions or to catch up for mistakes that you make. So the thing that has dramatically changed is in that time compression of the need to react to what’s going on in the marketplace. So if you are not able to make those business decisions faster, you literally become a victim of a circumstance.”
“Today the ability to lay over decision-making processes that aren’t infrastructure based, that can bring pieces of operational data about your current performance, right now, just in time and make it visible in a very tangible and simple way for executives to make not only decisions about today but pre-emptive decisions about where they want the operation to run tomorrow and the week after that. That would not have been possible ten years ago. It is radically possible today.”
Happy Friday 21st Century Supply Chain readers! p.s. stay tuned for more in this series...