BY JAMES COOKE, EDITOR AT LARGE
techwatch
are you ready to share software
talent with your rivals?
THESE DAYS, A GOOD SUPPLY CHAIN PLANNER IS HARD TO
find. And for that, globalization is at least partly to blame.
As more and more companies spin complex supply chains across
the globe, they’re becoming increasingly reliant on a host of specialized software applications to manage these far-flung operations. Trouble is, the supply of people trained to run these apps
hasn’t kept pace with the growing demand. As a result, supply
chain and logistics departments are grappling with a full-blown
shortage of software wizards who can run these applications, particularly programs designed for advanced planning and forecasting. (Hint: If you’re out of work in the distribution
field, developing these skills could make you highly employable.)
A government-backed group in the Netherlands
has come up with a novel solution to the problem.
The group, the Dutch Institute for Advanced
Logistics (DinaLog), is proposing to set up what it
calls a “Cross Chain Control Center,” or 4C, that
would allow companies to pool their resources of
supply chain software talent.
As currently envisioned, the 4C center would
make use of the latest technology to manage and
control the information, product, and financial
flows for multiple supply chains. Under the plan,
companies would also share the IT talent; in fact,
it’s possible that rival enterprises would use the
same specialist to develop their sales forecasts and handle their distribution planning, according to Jan Fransoo, a professor of operations management and logistics in the School of Industrial
Engineering at Eindhoven University of Technology in the
Netherlands. Fransoo, who is involved in the Dutch government’s
efforts to establish such a center, described the plan at the Council
of Supply Chain Management Professionals’ conference in Europe
this past spring.
DinaLog has asked for proposals to run a pilot for the Cross
Chain Control Center, and it hopes to get the program going later
this summer. Companies like Unilever, Hero, and Mexx are reportedly interested in participating. It’s envisioned that the center
would be involved in supply chain planning activities like matching supply and demand, transport utilization, and intercompany
collaboration.
Although the Dutch government is backing
this plan as a way to maintain Holland’s pre-eminent role in world trade, the concept could
also be applied outside the Netherlands. A supply chain control center could be located in any
part of the globe where there’s enough talent to
staff the operation.
What’s intriguing about the 4C concept is that
this could very well represent the next stage in the
development of information technology for supply
chain management. Not so
long ago, the biggest barrier to technological
advancement was usually
access to software. But the
advent of cloud computing has changed all that.
Today, more and more
software vendors are making their tools available
over the Internet, allowing
access from almost anywhere on almost any device. Now, the biggest
obstacle to widespread software deployment has
become the shortage of knowledge workers.
The Cross Channel Control Center just
might provide the means to share scarce
resources. Granted, there are still some details
to work out and some questions to be
answered. For example, to what extent will
company directors—or even government
antitrust officials—allow enterprises to share
knowledge workers who would be privy to the
intimate details of a rival’s supply chain? Still,
such centers could emerge as a new type of
outsourced service that supplants even third-party logistics.