Supply chain 4.0 : The 7 challenges of tomorrow 

The supply chain 4.0 is at the heart of economic, political and human issues. In today's uncertain environment, the sector must constantly reinvent itself to keep pace with the explosion of e-commerce worldwide.

In recent years, the employment market imbalance in the employment marketsupply chain companies have been struggling to to recruit qualified candidates to meet their new requirements. The sector is undergoing major changes, requiring the employment of multi-skilled people with new expertise.

What major changes can we expect in the future? How can we best anticipate them? Procemo sheds light on the 7 new challenges facing the supply chain 4.0.

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1. Supply chain recruitment, more competitive than ever

The supply chain job market has never been so tight. Companies are vying with each other to attract the best profiles and overcome the shortage of qualified candidates.

Supply chain recruitment strategies are, in fact,inbound marketing techniques for attracting talent. In particular, companies can leverage a strong, differentiating employer brand to carry their messages across all platforms: job boards, social networks, career sites. The aim is to quickly create a link with your audience, adopting a light, engaging tone.

Another key issue in supply chain recruitment is inclusiveness. Candidates are particularly sensitive to the measures put in place by companies to promote the inclusion of individuals with disabilities, and to comply with the legal framework for gender equality.

To achieve even the most ambitious recruitment objectives, don't hesitate to call on the experts. Procemo consultants offer you strategic and operational solutions to boost your performance. Our consultants are passionate about their work, and have a perfect command of your area of expertise: purchasing, supply chain or logistics.

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2. The new requirements of supply chain employees

The health crisis has had a major impact on employees and their work habits. Work-life balance is now a priority. Companies that struggle to be flexible and keep pace with their talent are experiencing high staff turnover.

Supply chain talent is also sensitive to its working environment. The sector sometimes has a reputation for offering jobs that are arduous, constraining and unfulfilling. Companies must therefore reinvent themselves to deconstruct these preconceived ideas and offer a flexible framework where quality of working life is a priority.

In 2023, human resources players face a dual challenge: acquiring skilled talent and retaining existing employees. Employees prefer more horizontal management techniques where their voices count.

To achieve its retention objectives, a company must frequently re-evaluate the salaries and responsibilities of its employees. One solution would be to offer prospects for advancement to managerial positions.

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3. Digitizing the sector

The supply chain sector has undergone considerable digitalization in response to strong consumer demand. According to a January 2023 report published by an ESN on future corporate investments, new technologies are a priority for 43% of supply chain managers.

The aim? Produce better, faster and more sensibly.

Digitization is a major challenge that impacts a company's performance, its recruitment missions and the allocation of its budget. Today, supply chain investments are focused on :

• SaaS data management solutions. These digital innovations have a direct impact on recruitment dynamics. Many recruitment agencies are offering innovative solutions to optimize the candidate experience.
• Visit business software help managers and employees to achieve their production objectives rapidly. Among them, Transport Management Systems(TMS) calculate the best route options for transport providers, while Warehouse Management Systems(WMS) enable efficient management of stocks and physical flows.
• Artificial intelligence is also widely used in the sector to collect and process data. AI helps companies anticipate peaks in activity and adapt their behavior and energy consumption.
• Blockchain technology helps to securely store, communicate and manage even the most sensitive information. It enables companies to improve their operational efficiency while remaining transparent about their activities.  

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4. The supply chain in a geopolitical context

The economic context of 2023 is particularly unstable. To cope and remain competitive, supply chain players need to establish clear master plans. The stakes are twofold:

• protect against unstable economic and social conditions;
• maintain a certain degree of flexibility in the face of unforeseeable events.

The challenges posed by the geopolitical context continue to multiply: inflation, energy supply insecurity, climate change... Companies need to mobilize all the resources at their disposal to consolidate their master plans.

To achieve this, they are forced to rethink their investments in new technologies such as cloud and forecasting software. Flow management is at the heart of an efficient, reliable value chain.

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5. Streamline collaboration between the various links in the chain

The management of physical, information and capital flows requires improved collaboration between the various links in the chain. To achieve this, supply chain companies need to surround themselves with service providers over the long term. 

Companies and service providers need to draw up clear, detailed specifications covering potential hazards, their predictability and expected results. These documents must be as precise and transparent as possible, and are a guarantee of fruitful collaboration.

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6. Transport management: a key supply chain issue

Transport management is a central challenge in the supply chain. A poor strategy in this area leads to considerable economic losses and has a negative impact on a company's carbon footprint. With energy insecurity, rising fuel prices and supply difficulties, the subject has never been so hot.

Transport-related processes and practices are tending towards greater rationalization and pragmatism. Once again, technology is called into play. The TMSs mentioned above are indispensable for limiting empty journeys, optimizing each trip and adopting a rational management of energy resources.

To take things a step further, some companies are implementing a series of actions to promote sustainable management of their value chain:

• the introduction of soft mobility in the first and last kilometers of goods collection and distribution networks;
• digitization of services to optimize the user experience (real-time tracking of order processing, etc.);
• development of urban hubs for order picking ;
• integrating returns logistics into techniques for calculating transport performance and organization. 

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7. Towards a green supply chain

Tomorrow's supply chain will be green and responsible. Eco-responsibility is a central issue in this field, not only to comply with the legal framework, but also to meet consumer demands.

Since January^1, 2023, all fleets have been required to track the Energy Efficiency Index of Existing Vessels (EEXI). This measure was introduced by the French government with the aim of decarbonizing the industry.

The French government's commitment to a sustainable supply chain is underpinned by the Charter for Responsible Purchasing and Supplier Relations. A reference document that signals the government's support for supply chain players.

As for consumers, they are increasingly demanding transparency and traceability in the production process. They pay close attention to the origin and composition of products, and to the relationship between the company and its production partners.CSR commitment is now a priority in the supply chain sector.

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Conclusion

The challenges of supply chain 4.0 concern people, new technologies, and the urgency of energy and climate change. No link in the chain has been spared these changes.

To meet these challenges, it is essential to completely rethink the organization of its value chain and workforce. Action levers are available to optimize budgets and time, and stay competitive in an increasingly competitive market.

To deal with these new data calmly, the best thing is to to be monitored by specialists. Procemo consultants offer you comprehensive support for your operational, training and strategic consulting needs. Contact an expert today to find out more about our solutions.