S U P P LY C H A I N O R C H E S T R AT I O N : A N E W E R A I N S U P P LY C H A I N M A N A G E M E N T

Supply chain orchestration
A new era in supply chain management

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A new era in supply
chain management
Although modern supply chain management

Boards and CEOs are not only asking supply

has only emerged as a critical business function

chain leaders how they will become more agile

over the last 40-plus years, supply chains havebut also how they’ll do it without harm to thebeen around for millennia. When early man firstplanet.

gathered and sharpened a stick and traded thatstick for a handful of berries, the concept of a
supply chain was born - to source, make anddistribute the necessities of life.

It’s fair to say that supply chain professionals areon the hook for a whole array of business-criticaloutcomes. They need to get the right productsin the right hands at the right time. At minimum

But while the goal of any supply chain remains

cost to the business. And the environment.

to deliver products to the people that need

Without fail.

them in return for some form of payment, thanks
to increasing consumer demands, regulatory

But how?

pressures, rapid technology advancements anddisruptions of all shapes and sizes, it’s gotten –well, let’s say a little more complicated!
Disruptive global and local events such as
COVID-19, port congestion, extreme weather
and geopolitical tensions have challengedsupply chains in unprecedented ways andpropelled supply chain high up the corporate
agenda.

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Revolution not evolution
Optimization efforts have also been heavily“The techniques and processes
that we’ve relied on for thepast 30 years will not survive
the next three.”
ROGERIO BR ANCO,CHIEF SUPPLY CHAIN OFFICER,

focused on individual functions, at the expenseof the supply chain as a whole. While thatmight have worked just fine 30 years ago, thesupply chain game has changed and looking forincremental improvements to current processes
just won’t cut it.
Today, leading companies are increasingly
recognizing that the end game is not to reduce
the amount of uncertainty in the future, but toreimagine their supply chains to eliminate theWhere the only certainty is uncertainty, whatneed for certainty.

does that mean for today’s supply chain
management approaches?

So, let’s talk supply chain orchestration.

For decades, most supply chains have been
governed by a series of sequential waterfall
steps, passing information from one function
to the next. By design, this cascaded approachcreates siloes, lack of transparency, latency andmistrust – all poison for agility.

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The brave and the bold
To withstand disruption and unlock new

thereby causing inflation and increased

opportunities, companies must radically rethinkcosts globally.

how they manage their supply chains.

“Real-time decision making within eachToday’s challenges demand hyper-agile, modern

process and orchestrated action across all these

supply chain management techniques – theprocesses — including business partners — has

end-to-end orchestration of people, andbecome critical for organizations to develop

physical, digital and financial assets to meethigh-performing supply chains.”1

customer expectations and corporate goals,
while doing little harm.

That’s why leading companies like Bose, DSV,
Schneider Electric, Trinity Rail, and Unilever

While the concept of ‘orchestrating’ specifichave adopted this new approach, rebuilding

parts of the supply chain isn’t new, supply chain

their supply chains on the foundation of fourorchestration is emerging as a new sub-segmentcompetencies: agility, transparency, intelligenceof supply chain management – bringing

and trust.

together the most critical activities into a new
synchronized process.
According to Gartner®, “Leaders within thesupply chain or logistics function have faced
a lot of disruption caused by recent events —such as the energy crisis, labor shortages andraw material availability.
“Supply chains have been impacted end to“At the end of the day, everydollar we spent on agility
has probably got a 10x
return on every dollar spent
on forecasting or scenario
planning.”2
MARK ENGEL,CHIEF SUPPLY CHAIN OFFICER, UNILEVER

end by such disruptions — including planning,sourcing, manufacturing and fulfilment —4

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Unlocking agility
Agility is at the heart of supply chainorchestration, bringing about a fundamental
shift in how organizations approach theiroperations.
While traditional processes suffer from decision

Agility in actionand execution delays, causing inefficiencies andConsider Procter & Gamble (P&G) who

missed opportunities, a properly orchestrated

implemented significant process changes tosupply chain synchronizes the entire ecosystemenhance disaster recovery capabilities withinin real time.

its supply chain, embracing digital technology

For example, with supply chain orchestration,companies can swiftly identify surges indemand, assess available inventory, and initiate
real-time communication with suppliers,
manufacturers and distribution partners tomake data-driven decisions such as allocating

and data analytics to better predict and prepare
for disruptions caused by natural disasters, suchas hurricanes. P&G’s digital supply network
allows real-time monitoring of inventory andproduction, facilitating agile decision making
and bolstering overall supply chain resilience.

additional resources, expediting production and

Hurricane Irma marked a defining moment

rerouting shipments to ensure availability.

in P&G’s digital supply chain transformation

The real-time agility provided by closing theplanning-to-execution gap has a ripple effect,
positively impacting the entire supply chain and,ultimately, delivering a seamless experience tothe end customer.

journey. Thanks to the sophisticated what-if andvisualization capabilities embedded in its supply
chain orchestration solution, the company wasable to activate its business continuity plans,
secure supply and reposition inventory to ensurethat it was there with all the things people need
the most when the storm cleared.

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As a result, while other major CPG companies“Supply chain orchestration allows us to act aswere going to Wall Street to say they wereone synchronized machine. Having undergone

going to have a problem with their P&L, P&G

minimal internal change in systems, processes, andexperienced no business impact, ultimatelypeople, we’ve retained our DNA but also gainedviewing the supply chain response as a major

the critical ability to work together as one in a newpositive for the business.

and critical sector.”

Solving the multi multi problem“Our key objective is to ensure customers get theAs the ultimate custodians of the customer
experience, logistics and operations teams areat the epicenter of a highly complex multi-party
network, where every hour of every day brings

best possible service at the best possible rate.
Supply chain orchestration is helping us do that.”
BRET T SAUERMAN,
GENERAL MANAGER OF FREIGHTMANAGEMENT SOLUTIONS,

unexpected challenges and every second, dollar
and kilo of CO2 emissions counts. To say that thejob can be a little stressful is an understatement!
Supply chain orchestration rises to the challengeof managing multiple parties, systems andprocesses to drive high-performance supply
chains that are able to fulfill on time and infull at the lowest possible cost, and to doso consistently, with resilience to changing
demands and conditions.
The result? Happier customers, healthiermargins and a better night’s sleep.

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From visibility
to transparency
Visibility is to see a thing, but transparency is tounderstand what you see. One is interesting, theother incredibly valuable.
Promoting collaboration among internaland external stakeholders is also vital inorchestration. Silos within organizations andfragmented external relations hinder efficient
supply chain management.
Supply chain orchestration melts away

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According to ARC analyst, Steve Banker, “Fillingin the information black holes that exist in mostcompanies’ end-to-end supply chains would bea digital transformation project that is operating
at a much higher level of maturity. This means
connecting with suppliers, customers and key
supply chain partners up and down multiple
tiers of a company’s extended supply chain.”3

boundaries across individuals, functions andnodes within the supply chain, fosteringcollaboration and creating a unified sourceof truth. This transformation moves beyond
mere visibility to transparency and sharedunderstanding, rallying teams around common
objectives and empowering stakeholders withactionable insights and data-driven decisionmaking capabilities that drive efficiency,
sustainability and resilience across the supplychain ecosystem.

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Operationalizing sustainability
Jamieson Wellness, the Canadian leader invitamins, minerals and supplements, witha vision of bringing health and wellness tothe world, is taking a data-driven approachto operationalizing sustainability - bringing
the company closer to its targets, including
recyclable plastic in 50% of its packaging,
reducing 75% of its landfill and bringing
sustainable raw materials to its products by 2030.
Rather than pit its traditional cost andperformance benchmarks against its
sustainability goals, it is using supply chain
data to takes a more holistic approach and toevaluate environmental impact alongside its
existing business KPIs.
“Supply chain is the engine working alongside ourmanufacturing and ESG teams to operationalize
sustainability, providing the data and insights to
help our management team and our businessmake better decisions for people, profit andthe planet.”
ANDRE TEIXERA,VP, GLOBAL SUPPLY CHAIN,

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ElevatingintelligenceIntelligence is another critical factor in supply
chain orchestration, propelling organizations
towards higher levels of efficiency and decision-The AI advantage

making prowess.

Take the case of a major consumer packagedWith the volume of data supply chains generate
today, it’s critical for teams to quickly cut
through the noise to the insights that matter.

goods manufacturer which was experiencing
lengthy consensus demand planning cycles,
high levels of bias and poor forecast accuracy.

Orchestration harnesses the power of AI toThanks to ML-based demand forecasting, theprioritize exceptions based on their impact

company achieved a >100% improvement into the business so teams know which fires

forecast accuracy and reduced forecast bias byto fight. By automating the obvious, routine

7%, leading to increased trust and analytical rigor

exceptions are automatically resolved withinin the forecasting process and a ~50% reduction

human-prescribed guardrails, while visual-basedin manual planning activities.

explanations show how and why an automateddecision was reached so your teams understandNow that’s what we call the AI advantage!

and trust them.
Just as a symphony brings together diverse
instruments to create a harmonious
composition, so supply chain orchestration
harnesses the strengths of both human intellectand machine analysis to drive improved>100% improvement inforecast accuracy
7% reduction in forecast bias
~50% reduction in manualplanning activities

productivity and decision intelligence.

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Building afoundationof trust
result of successful supply chain orchestration.

Dissolving organizationalboundaries

It establishes a robust foundation of shared

When it comes to supplier collaboration, theaccountability among all supply chain functions

ability to dissolve organizational boundaries canand external contributors.

drive significant benefits, as evidenced by one ofTrust might be the often forgot, but cornerstone

In this environment of trust, teams collaborate
seamlessly, aligning their objectives andKinaxis’ customers — a high profile manufacturerof audio equipment.

collectively addressing challenges. This ensures

Manually managing multiple data components

the reliability and integrity of the entire

in Excel spreadsheets across the company’s

supply chain network, fostering a cohesive

network of contract manufacturers, meant theecosystem where all stakeholders work together

company lacked the visibility they needed toharmoniously.

efficiently deliver on customer demands.

Trust is not only the bedrock of effective supply
chain management but also a catalyst foragility, transparency and intelligence, drivingorganizations towards their goals with purpose,confidence and cohesion.

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S U P P LY C H A I N O R C H E S T R AT I O N : A N E W E R A I N S U P P LY C H A I N M A N A G E M E N TKinaxis® RapidResponse® helped them establish
true supplier collaboration and a single sourceof truth for supplier data across the business,streamlining the supply chain and increasing
revenue.
“RapidResponse was more organic and less siloed.
It was easy to see how someone dealing with a key
customer like Amazon or Best Buy and someone
dealing with a Tier 1 or Tier 2 supplier could bothuse the same data and work in a more organic
way.
“With RapidResponse we have visibility all the way
through our supply chain at a much better level
and can improve accuracy, inventory turns andcost coming in.”
D I R E C T O R , S U P P LY C H A I N P L A N N I N G& I N V E N T O R Y, L E A D I N G A U D I O
E Q U I P M E N T M A N U FAC T U R E REmbracing
supply chainorchestration:navigating
challenges withconfidence
The modern supply chain landscape is strewn
with unprecedented challenges and disruptions
and traditional supply chain management
approaches have failed us all.
By synchronizing every part of the end-to-end
supply chain and enhancing agility, transparency,
intelligence and trust throughout the ecosystem,
supply chain orchestration is rapidly emerging as
the solution to these challenges.
With supply chain orchestration, organizations cannavigate the complex challenges of supply chain
management with confidence, ensuring they meettheir corporate goals while minimizing harm tothe planet.

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Are you ready to take the next step?
To learn more about how Kinaxis can help, visit Kinaxis.com
or contact us today at info@kinaxis.com

About Kinaxis Inc.
Kinaxis is the global leader in modern supply chain management. We serve supply chains and thepeople who manage them in service of humanity. Our software is trusted by renowned global brands
to provide the agility and predictability needed to navigate today’s volatility and disruption. We
combine our patented concurrency technique with a human-centered approach to AI to empowerbusinesses of all sizes to orchestrate their end-to-end supply chain network, from multi-year strategicplanning through down-to-the-second execution and last-mile delivery.
Don’t believe us? Ask us to prove it.

www.kinaxis.com

This publication is accurate as of the date published and may be updated by Kinaxis from time to time at its discretion.
Copyright © 2023 Kinaxis Inc. All rights reserved. Kinaxis, the Kinaxis logo and RapidResponse are registered trademarksof Kinaxis Inc and its affiliates. All other brands and product names are trademarks or registered trademarks of theirrespective holders, and use of them does not imply any affiliation with or endorsement by them. 10.23

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Endnotes
1Gartner, Quick Answer: Which New Software Purchases Are Making an Impact for Supply Chain Buyers?, Manav Jain,Balaji Abbabatulla, 10 February 2023 (Gartner Subscription required to access the report). GARTNER is a registeredtrademark and service mark of Gartner, Inc. and/or its affiliates in the U.S. and internationally and is used herein withpermission. All rights reserved.

2Unilever CSCO: Agility beats forecasting when the supply chain is stressed | Supply Chain Dive

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“20 Things To Know About Digital Supply Chain Transformations (forbes.com)

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