I interviewed Jay Daniel who discussed Innovation in Supply Chain Trends for Driving Business Improvement.
Can you first provide a brief background of yourself?
Yeah. Hi, Dustin. Thanks for the interview. Actually, my name is Jay Daniel, assistant professor in the University of Technology, Sydney. I'm responsible for teaching and researching for post-graduate students here and for [inaudible 0:00:30] engineering, supply chain and operations engineering. And actually, the thing is, I've got more than 15 years’ experience in supply chain and logistics, quality and productivity improvement, and business analytics, decision making. I was working before as a logistics and supply chain solution analyst and project management for DB Schenker in Sydney and also different consulting firms. I'm very passionate in supply chain. My passion is supply chain and business analytics, actually.
Can you talk about what's involved with supply chain innovation for driving business improvement?
Yeah. Actually, as you know, innovation in supply chain trends for driving business improvement, there are different elements for innovation trends in supply chain like Internet of Things. For example, Internet of Things, lots of smart phones and different objects connected to each other at the moment and sensors or smart objects. For example, in Australia, a new device [inaudible 0:01:58] to text message their farmers when they are sick or pregnant. Those are very interesting things.
And other things about big data, it's about volume, velocity, and variability, and there's lots of data we need to manage in supply chain with different collaborators and different businesses in the supply chain and logistics networks -- like structured data, unstructured data, I mean, social media, different channels, customer service, sensor that data like RFIDs, GPS and different data, and new type of data like mapping and GPS, [inaudible 0:02:39] voice and digital mergers. We need to manage all big data in the supply chain to drive the innovation in the supply chain.
Another thing about automation and robotics, as you know, automation and robotics is very important. It's also [inaudible 0:02:58]. It's more powerful and [inaudible 0:03:03] forklifts, as you know.
Another thing is driverless trucks. As you know, driverless trucks, it's like Volvo's truck, driverless [inaudible 0:03:19] Europe. We need to think about in Australia, in Sydney, how we can have the driverless truck [inaudible 0:03:28].
Another thing about drones... As you know, drones, for example, at the moment, Amazon, they are doing trial about drones delivering parcel in 20 minutes from D.C. to the customer's door. There's the DHL delivery drones as well. They are making trial and doing research about this.
Another thing is blockchain and other trends, innovation trends. It's permanent, decentralized, global online leger of transaction using blockchain parts that can compare transactions without the need for central [inaudible 0:04:21] final authorities has made the link block that holds batches of valid transaction data. It started for bitcoins and bank and finance industries, but we can use it in supply chain and logistics to make more efficient and actually increase the communication between the collaborators in the supply chain and increase the efficiencies.
That's how technology is driving the innovations in supply chain.
Can you talk about the top five trends that you should know when competing with Amazon supply chain?
As you know, Amazon is coming to Australia. There are some trends that we need to know, competitors of Amazon in supply chain in Australia.And some of the companies, they need to worry a little bit about Amazon's coming to Australia. It's like electronics and [inaudible 0:05:29] and different retailers. They need to prepare themselves for Amazon. They need to know how to use robotics to grow more versatile supply chain, like Amazon, using [inaudible 0:05:42] robots.
And also, another thing about S&OP and forecasting,technology, as we discussed, [inaudible 0:05:51] and practices as well. And that's the procurement practices in important. The [inaudible 0:05:57], actually, the trend is more business will create with ecommerce platform, as I said, like blockchain, like different commerce channels. Here in Australia, we need to prepare for that.
Another thing is a user preference will enhance mobile management system, how we can do the mobile management system.
And the last thing is contingency planning will become standard practice, like risk management, disaster management, and this sort of stuff. You need to be resilient in the supply chain. We need to have a resilient supply chain. That's the top five trends to know to compete with Amazon in supply chain.
Do you have any final recommendations?
There is a supply chain manager. A good recommendation for supply chain managers of the future, actually, they need to know how to manage their supply chain — more responsive, agile, and resilient, and efficient as well. They need to know it's the business transformation changing from supply-centric to customer-centric. And they need to understand market understanding, customer [inaudible 0:07:20] with big data and those innovation technology, innovation trends.
They need to know from push to pull and management of the complexity and change. And also, from inventory to information system, information technology expertise. They need to have the sort of skills to compete with other competitors from transaction to relationship. They need to build the relationship with the collaborators, with businesses in supply chain, from trucks and ships to [inaudible 0:07:59] management. They need to understand supply chain management, understanding cost to serve, and time-based performance indicators, and other things about function to process. They need to have a process in the supply chain, not just the function, silos in the supply chain, all the links and blocks and step that are connected in the supply chain.
Another thing from standalone competition to network competition.And they need to know how to have a win-win orientation, hiring consultants for them to be successful in the marketplace, the competitive marketplace. That's my [inaudible 0:08:45] for the supply chain manager of the future — to drive the innovation and drive the responsive and efficient supply chain.
Well thanks for sharing today, Jay.
Thank you. Thanks for your time. Thanks for interviewing me. Thanks for having me.
About Jay Daniel, PhD
Jay Daniel, PhD
Business Analytics ★ Sustainable Supply Chain ★ Quality and Productivity Improvement Expert