Frequently Asked Questions - Supply Chain Management (SCM)

Without doubt, technology advancements have significant merits, but they need to be implemented alongside a thorough transformative strategy to ensure sustained success.

Organizations can be quick to buy into ‘miracle’ products and spend time and money on systems but won’t spend on the actual transformation needed for business planning or the supply chain itself. It’s understandable, but ultimately unwise.

Although software systems need to complement an existing IBP process, IBP in the 21st century is also inextricably reliant on the data these software systems capture. In fact, modern IBP has for some organizations evolved into Enterprise Business Planning (EBP) which uses the latest technology such as AI and demand sensing to provide control in volatile, consumer-driven and unpredictable environments.

Oliver Wight Partner Birgit Breitschuh discusses this in context of the role of Supply Chain in the 21st century or you can learn more about our alliances with other leading experts.

A sustainable supply chain fully considers and integrates human rights, fair labor practices, environmental progress and anti-corruption policies into its model. Organizations with a sustainable supply chain have complete end-to-end transparency.

In his white paper, Reduce, reuse, recycle – building a sustainable supply chain Oliver Wight Partner Flavio Pietrocola discusses how organizations can develop a sustainable supply chain, alongside potential challenges, and, most importantly, how to ensure it is future-proofed.

Industry 4.0 refers to the fourth industrial revolution in manufacturing. Focusing heavily on interconnectivity, automation, machine learning, and real-time data, it marries physical production and operations with smart digital technology, machine learning, and big data. For example, digital twins. A digital representation of a real-world product, machine, process or system which enables organizations to monitor and analyze processes through real-time simulation.

Learn more about industry 2.0 in our white paper, Digital Disruption - is your organisation ready?

Supply chain management (SCM) is fundamental to business performance because it links strategic intent with operational execution. In today’s complex and volatile markets, supply chains are no longer just about moving goods efficiently - they are a core driver of agility, cost competitiveness, customer experience, and sustainability.

Effective SCM ensures that organisations can respond to demand variability, navigate geopolitical and environmental disruptions, and scale with confidence. It allows for real-time alignment between commercial priorities, operational capabilities, and financial goals. When managed well, the supply chain becomes a source of value creation rather than a cost centre - enabling businesses to outperform competitors, protect margins, and serve customers reliably.

At Oliver Wight, we help businesses elevate their supply chain function from tactical operations to a strategic enabler of growth. This means embedding best-practice processes, empowering people with the right capabilities, and ensuring technology supports - not hinders - decision-making and execution.

A supply chain management consultancy helps businesses untangle complexity, spot performance gaps, and redesign the way their supply chains operate - from planning and sourcing to delivery and everything in between.

This isn’t just about trimming costs or speeding things up (although that often happens). It’s about creating supply chains that are aligned with the business strategy, able to flex with market shifts, and robust enough to keep performing when things go wrong. The consultancy brings expertise, external perspective, and structured methodologies - often drawn from years of experience across sectors and geographies.

Sometimes that means implementing a new planning process, or helping a business actually use the expensive ERP system it bought five years ago. Other times, it's coaching leadership teams to work better across silos, or creating a roadmap to turn a fragmented network into a scalable, data-driven operation.

Find out more about Supply Chain Management Consulting Services

In short, supply chain consultancies help good organisations become exceptional by making their supply chains more intelligent, integrated, and responsive.

Many organisations struggle to improve supply chain management not because they lack ambition, but because they face deep-rooted systemic barriers. Common challenges include:

• Disconnected functions and siloed thinking: Departments operate in isolation, undermining end-to-end visibility and collaboration.

• Strategy stuck in planning: Strategic goals fail to cascade into operational plans, resulting in misaligned execution and missed targets.

• Underutilized technology: ERP and planning systems are often implemented without fully embedding them into day-to-day behaviours, leading to reliance on workarounds and poor data quality.

• Lack of governance and accountability: Without clear roles, performance metrics, and structured decision-making, organisations default to reactive firefighting rather than proactive control.

• Leadership and capability gaps: Improving SCM requires change leadership, cross-functional understanding, and supply chain expertise - capabilities that are often uneven across the organisation.

At Oliver Wight, we address these challenges through a proven transformation approach that integrates people, process, and technology. We work alongside leadership teams to define a shared vision, implement structured planning frameworks like Integrated Business Planning (IBP), and build a performance culture that sustains improvement over time.

Execution requires more than a strong plan - it demands total organisational alignment. Translating strategy into action calls for cross-functional collaboration, embedded decision rights, and a clear operating rhythm that links strategic objectives to daily execution. This means aligning commercial, financial, and operational teams around a unified plan that is continuously reviewed, adjusted, and communicated.

Consider a global consumer goods manufacturer that struggled with disconnected planning cycles across sales, operations, and finance. Despite strong strategic intent, execution fell short due to conflicting priorities and misaligned KPIs. By implementing a formal IBP framework, they created a single integrated plan, introduced regular scenario reviews, and established cross-functional decision forums. Within one year, their forecast accuracy improved by 23%, inventory was reduced by 18%, and leadership teams gained greater confidence in their ability to respond to market shifts.

Execution excellence doesn’t just happen. It’s built by empowering leaders and teams with the right data, clear roles, and shared accountability - turning plans into action with precision.

Find out more about Supply Chain Management Consulting Services

True integration is not achieved through isolated improvements, but through systemic alignment of organisational capabilities.

• People must be empowered to take ownership of outcomes, with clear roles, training, and accountability. 

• Processes should be documented, repeatable, and continuously improved based on performance feedback. 

• Technology should not be bolted on but deeply embedded, enabling and enhancing decision-making at every level. 

• Integration is cultural as well as operational - it requires leadership to model collaborative behaviours and invest in breaking down silos. 

When these elements are harmonized, supply chains gain agility, resilience, and the ability to scale without compromising efficiency.

Functional excellence is a necessary but insufficient condition for high performance. True optimisation occurs when the end-to-end value chain is managed as an interconnected system, rather than a set of isolated departments. 

This requires shared goals, integrated planning processes, and governance structures that promote enterprise-level thinking. Metrics must reflect cross-functional performance, not just departmental KPIs. Strategic decision-making must be supported by forums where commercial, financial, and operational leaders come together to evaluate trade-offs and align on a single course of action. 

The result is a supply chain that delivers not only efficiency but responsiveness, profitability, and long-term value.

There’s a common assumption that investing in technology automatically drives performance. In reality, many supply chains falter not because the technology is flawed, but because it’s poorly implemented, misaligned with existing processes, or simply not used as intended.

Take the example of a European pharmaceutical distributor that invested millions in a tier-one ERP solution. The software was state-of-the-art, but frontline teams reverted to spreadsheets, citing poor user interfaces, unclear workflows, and lack of ownership. Orders were missed, data was duplicated, and service levels dropped. Only after redesigning their planning processes, re-training users, and simplifying decision rights did they start to unlock the system’s potential.

Technology alone cannot fix broken processes or bridge cultural resistance. To deliver value, it must be introduced as part of an integrated operating model - where people are engaged, processes are redefined, and leadership champions the change from the top down.

READ: When systems fail, people-leadership must prevail

Organisations are no longer asking whether they need to be agile; they’re asking how to be agile without driving up costs. It’s a fair question. And the answer lies in optionality and anticipation.

One multinational electronics company restructured its sourcing model to include dual suppliers in key regions. While this added slight margin pressure in the short term, it paid dividends when floods halted production at one of their primary sites - allowing them to shift orders seamlessly. Elsewhere, a UK-based retailer used digital twins to model supply chain disruptions in real time. When geopolitical tensions flared, they were able to re-route shipments with minimal impact to service or margin.

Agility doesn’t mean overbuilding your network. It means building the right levers - flexible contracts, digital visibility, and scenario-based planning - so you can pivot quickly when the world doesn’t follow your forecast. That’s resilience by design.

Read our most recent supply chain articles.

A scalable supply chain is built on standardised, modular processes that can be replicated or adapted across markets, product lines, or geographies. A sustainable supply chain integrates environmental, social, and economic considerations into the operating model - from sourcing and production to distribution and end-of-life. This requires transparency in the value chain, supplier engagement, and the use of performance metrics that account for environmental and social impacts alongside traditional financial KPIs. Future-ready supply chains incorporate circular economy principles, automation, and data-driven insights to support responsible growth.

READ: The role of Supply Chain in the 21st century

Continuous improvement isn’t a one-time event. It’s a living, breathing mindset that must be embedded deep within the organisation’s operating rhythm.

In one industrial manufacturing firm, performance had plateaued. They introduced a layered accountability model that included daily tiered meetings, visual management boards, and structured root cause analysis. More importantly, they trained supervisors to coach, not just manage. Within six months, on-time delivery improved by 12%, scrap was reduced by 8%, and employees were actively proposing process enhancements.

This kind of cultural shift doesn’t come from a workshop or a slide deck. It grows from leadership consistency, empowered teams, and a belief that tomorrow can be better than today - and that everyone has a part to play.

Supply chain leaders are uniquely positioned to drive enterprise-wide transformation due to their visibility across demand, supply, and financial flows. They must act as strategic partners to the business, shaping long-term plans and translating them into executable actions. This includes championing integrated planning, promoting cross-functional collaboration, and ensuring operational capabilities align with commercial ambition. 

Effective leaders also play a critical role in building capability, coaching teams, and driving cultural change. By adopting a systems-thinking mindset, supply chain leaders can help organisations navigate complexity and deliver sustainable performance.

READ: Next-gen leadership: building tomorrow's success through cross-generational collaboration

While traditional KPIs such as forecast accuracy, service levels, and inventory turns remain important, they do not capture the full value of transformation. Broader indicators include time-to-decision, speed of re-planning, employee engagement, process adherence, and alignment between operational and financial outcomes. Maturity models and behavioural assessments can provide insight into cultural and capability shifts. Ultimately, successful transformation should lead to improved agility, reduced risk, better strategic alignment, and measurable business impact.

Alignment requires a planning process that integrates long-range strategy with short-term execution, bridging the gap between commercial ambition and operational reality. This involves creating a unified planning calendar that brings together financial planning, sales forecasting, product lifecycle planning, and supply chain operations. A single version of the truth, shared across functions, enables scenario analysis and informed trade-off decisions. Financial reconciliation within the planning cycle ensures that operational plans are grounded in profitability and cash flow considerations.

Leading change at scale is a balancing act between structure and sensitivity. There’s no one-size-fits-all. But there are patterns.

In a global food manufacturer, transformation efforts had previously stumbled due to inconsistent execution across regions. This time, they started differently. Pilot countries tested new processes under local leadership. Regional champions were trained early and embedded into project teams. Feedback loops were formalized, allowing frontline insights to shape the global design.

By the time full rollout began, 75% of the frontline users had already had exposure to the change, either directly or via peers. Adoption was faster, resistance lower, and performance metrics showed marked improvement.

The lesson? Successful transformation is not imposed. It’s co-created. It’s supported by clear messaging, strong governance, and space for local ownership. When people feel part of the change, they’re far more likely to drive it.

DOWNLOAD: Supply Chain Management - A Year in the Life

Extracting greater value from existing systems begins with understanding how they are currently used versus their intended design. A gap analysis can highlight underutilized functionality, data quality issues, and process inefficiencies. Organisations should realign workflows to system capabilities, eliminate manual workarounds, and standardize master data management. Training and change management ensure users are confident and accountable. Integrating ERP with planning, analytics, and collaboration tools creates a more dynamic and responsive planning environment.

Data underpins every aspect of modern supply chain performance, from planning and procurement to manufacturing and delivery. High-quality, accessible, and timely data enables better forecasting, inventory management, and service levels. Governance structures must define ownership, standards, and validation protocols to ensure data integrity. Advanced analytics and AI can transform raw data into actionable insights, supporting strategic decisions and operational improvements. A single source of truth, supported by real-time dashboards and alerts, empowers teams to act quickly and with confidence.

Moving from reactive to proactive management requires a shift in mindset, process design, and capability. Visibility is the first step - real-time data, leading indicators, and early-warning systems enable pre-emptive action. Governance structures must support issue resolution at the right level, with escalation paths that encourage early intervention. Integrated planning ensures that changes in one area are evaluated across the entire value chain. Performance management systems should reinforce forward-looking behaviours, scenario thinking, and accountability for prevention rather than cure.

DOWNLOAD: Supply Chain Design and Optimization

Developing supply chain leaders requires more than technical training. It involves cultivating strategic thinking, business acumen, and people leadership. 

Structured development programmes should include mentoring, job rotation, exposure to cross-functional initiatives, and formal training. Leaders need to be fluent in financial concepts, digital tools, and change management. Embedding leadership into governance structures gives future leaders experience in high-impact decision-making. Recognising and promoting the right behaviours reinforces the leadership culture needed for long-term success.

Read our most recent supply chain articles.

Collaboration is driven by shared purpose, mutual accountability, and aligned incentives. Organisations should establish cross-functional planning forums with clear mandates and decision rights. Shared metrics and performance dashboards help focus teams on enterprise goals rather than functional KPIs. Role clarity, training, and team charters foster trust and reduce friction. Technology platforms that enable transparency and communication also support collaboration. 

Above all, leadership must model collaborative behaviours and reinforce them through recognition and reward systems.

Sustaining performance requires embedding new ways of working into the fabric of the organisation. 

This includes:

• Documented processes, clearly defined roles, and structured review mechanisms. 

• Continuous capability development, supported by training and coaching, ensures teams can adapt as conditions change. 

• Governance forums should maintain focus on improvement targets, track progress, and intervene when performance slips. 

• Cultural reinforcement through storytelling, recognition, and leadership role-modelling turns improvement from a project into a way of life.

Benchmarking provides a valuable external lens on performance, highlighting gaps and opportunities. 

• Maturity assessments should evaluate process design, technology usage, data governance, organisational capability, and cultural alignment. 

• Comparative benchmarking against peers or industry standards helps set realistic, yet ambitious, improvement goals. 

• Diagnostic tools, stakeholder interviews, and performance data analysis form a comprehensive view of the current state.

This all informs prioritised action plans that address root causes and support sustainable transformation.

READ: Reduce, reuse, recycle – building a sustainable supply chain

Common pitfalls include unclear vision, insufficient sponsorship, misaligned incentives, and underestimation of cultural resistance. Over-reliance on technology without addressing processes and behaviours is also a frequent issue. 

Avoiding these traps requires early alignment among senior leaders, robust change management, and a strong focus on building internal capability. Clear success criteria, realistic timelines, and frequent progress reviews ensure momentum and course correction. A holistic approach that integrates people, process, and technology significantly improves the likelihood of long-term success.