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

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