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Leadership in Uncertain Times
Oct 1, 2024
From economic fluctuations to geopolitical tensions to shifting consumer preferences, executives in the UK and Benelux EU regions must contend with a multitude of interconnected issues.
Whilst this may sometimes feel daunting, there are still effective ways to lead strongly in this type of supply chain and global manufacturing environment.
Let’s explore some of these strategies, from operational right through to governance guidance.
If you’re like one in five UK companies, you’ve experienced major uncertainty with your supply chain.
Perhaps it’s on the demand or supply side due to seasonal fluctuations, economic conditions or changing customer preferences. Or it could be operational with transport delays, production disruption or problems with inventory management.
In your quest for supply chain and operation excellence, it’s possible you have experienced all three. This is an extremely challenging situation that requires adaptive leadership and strategic foresight to circumvent effectively. Here are some suggestions to assist in that quest from our executive search experts at Melium Consulting.
There are many advantages to reducing risk in the supply chain and global manufacturing environment. You’ll enhance your operational resilience, ensure continuity during disruptions, and minimise potential financial losses.
A robust risk management framework also engenders stakeholder confidence, showing your commitment to maintaining stability and reliability in uncertain conditions.
One way to do this is to undertake scenario planning. This is an exploratory and analytical process that focuses on brainstorming future scenarios and possible solutions to deal with them.
You create and analyse multiple plausible future outcomes based on different assumptions and drivers and for each source of uncertainty within your business (supply chain, operational and demand and supply).
You then stress-test current strategies against each to determine the right responses. During this process, you may discover your organisation is lacking in a specific area and needs to develop better contingency plans, policies and protocols.
The next step is to implement continuous monitoring mechanisms so you can reassess scenarios and adjust strategies as needed over time. Part of this could include regular risk assessments to identify vulnerabilities. For example, what is your suppliers’ current financial stability? Is there potential for geopolitical risks in their operational area?
Another way to mitigate risks is to diversify your supply sources across different regions. This not only reduces dependency but also enhances negotiation power, leading to cost savings.
Near sourcing is another valuable risk reduction strategy. If you don’t already, consider local sourcing wherever possible. It reduces lead times and transportation costs, enhancing your brand's sustainability profile.
Many UK supply chain businesses are already doing this. A survey of 200 supply chain professionals found:
• 57% have most of their suppliers located in the UK or nearby
• 69% plan to do so this year
• Just 12% don’t have any plans to use local suppliers
Leveraging technology offers your supply chain or global manufacturing business multiple rewards; it enhances operational efficiency, reduces risk, and helps you comply with ever-evolving UK and EU ESG regulations.
A comprehensive global survey of executives in trade and supply chain management found almost 40% have adopted advanced automation and robotics to achieve greater efficiencies. Examples include the integration of AI to forecast demand accurately, which reduces trade costs and improves resource allocation. More organisations are adopting IoT technologies to enable real-time monitoring of assets and inventory, thereby enhancing visibility and responsiveness throughout the supply chain.
It comes as no surprise that one in three UK supply chain professionals feel the highest level of concern about a cybersecurity attack impacting their operations in 2024. In fact, a quarter said they experienced such disruptions in the past year, with almost 20% having it happen more than once.
Given this, cybersecurity tools are an important focus for your business, such as attack surface monitoring tools and code signing.
Another area where investing in technology can be extremely beneficial is compliance with new UK and EU ESG regulations, specifically ones that require you to report on supply chain emissions and sustainability. AI and IoT can provide real-time visibility, whilst predictive analytics can anticipate and mitigate risks.
In striving for supply chain and operation excellence, effective communication with your employees is vital. And it is never more so than during uncertain times.
In a climate of ambiguity, many employees naturally revert to cautiousness and inflexibility. This can lead to a diminished capacity for interaction, decision-making and innovation. How you respond as their leader can either reinforce this or steer them in a more positive direction.
Aim to provide regular, clear and transparent updates about the business and changes in strategy. Be open about both the positives and negatives. Whilst this might feel counterintuitive, it does promote trust. Transparency from leaders gives employees the confidence to handle challenges and identify opportunities to contribute to the company's success.
Consistency in your words and deeds is also highly valuable during turbulent times. This trait helps your employees understand exactly what to expect from you – and builds their confidence in your ability to lead them, no matter the market circumstances.
Some years ago, Microsoft CEO Satya Nadella said his company’s success came down to a leadership team striving to be ‘learn-it-alls’ rather than ‘know-it-alls’. It’s a profound statement that highlights how important it is for leaders to seek out and understand others’ experiences, from expert to employee.
It’s a common trait among leaders to feel the pressure to have all the answers. Acknowledging that is not possible is not only freeing, but it gives you the flexibility to adapt and explore new ideas. As the saying goes, value progress over perfection.
In the face of rising uncertainty and market volatility within the supply chain and global manufacturing sectors, leading teams requires a proactive and adaptable mindset. It involves a blending of operational strategies to reduce risks and leverage technology, and honing leadership qualities around transparency, communication and emotional intelligence.
At Melium Consulting, we methodically identify leadership talent that can effectively rise to these evolving challenges. Our executive search expertise ensures organisations across the UK and EU (Benelux) region are equipped with the right leaders who can not only manage complexity but also drive sustainable success in an unpredictable landscape.
Reach out to us to discover how we can help you build a resilient leadership team or uncover new career opportunities.