When COVID-19 hit, it was more than just a health concern. 72% of executives in an EY survey reported that the pandemic had a significant or mostly negative impact on their companies. Although some organizations outperformed others, supply chain disruptions hit many industries hard. For some businesses, this created significant financial hardships.

A study by the Canadian Office of the Chief Economist showed a broad number of supply chain vulnerabilities, accentuated when companies in China closed their borders. As manufacturers and vendors shut down operations, it exposed the fragility of the supply chain systems globally.

Pre-COVID Supply Chains

Before COVID, most manufacturers relied on just-in-time (JIT) strategies to minimize their inventory levels, mitigate holding costs, and reduce waste. When the pandemic hit, trade restrictions, part shortages, and port problems all created additional risks. Any savings from JIT were negated due to shortages of critical materials and inventory.

This caused many businesses to rethink their lean manufacturing strategies and supply chains, shifting to a just-in-case (JIC) strategy and ensuring a continuous flow of materials in case of future disruptions. However, in many cases this also resulted in over-ordering, forcing companies to tie up capital in inventory and goods that far exceeded demand. It’s a complex balancing act.

Even with the pandemic in the rear-view mirror, supply chains are still challenging. Geopolitical conflicts, concerns about policy changes due to elections in the US and other countries, and rising labor costs continue to impact supply chains. Companies have big decisions to make.

Rethinking Supply Chains

Moving forward, executives need to weigh resiliency vs. financial impact.  

Supply chain management has become more important than ever. Many executives are opting for near-shoring and regionalization, acquiring companies and suppliers in close proximity to maintain control of their supply chain.

Companies are also expanding their suppliers and trade partners to reduce single points of failure. Building supply chain redundancy has become a top priority for organizations. However, this gets complex quickly. Many suppliers have their own supply chain challenges, which means organizations must improve visibility into Tier 2 and Tier 3 suppliers to avoid their supply chain becoming your supply chain problem. Visibility is a key concern. One recent study showed that only 6% of companies report having full supply chain visibility.

Gaining greater visibility and making decisions about supply chain management will have a profound effect on your business. You need executive leadership with the skills to make confident decisions even in uncertain times.

The Skills Leaders Need to Evaluate and Build Effective Supply Chains

Executive leadership requires a broad set of skills to manage modern supply chains. 

You need executives who have expertise with:

• Analytical skills: Harnessing data to identify trends, optimize processes, and make informed decisions across the supply chain.
• IT and automation knowledge: Leveraging technology to streamline operations, enhance efficiency, and integrate supply chain systems.
• Understanding of market dynamics: Staying aware of industry trends, economic shifts, and consumer behavior to anticipate supply chain challenges.
• Budgeting, forecasting, and bottom-line management: Managing financial planning and forecasting to ensure cost-effectiveness and profitability.
• Agility and flexibility: Adapting quickly to disruptions, changing demands, and evolving supply chain management priorities.
• Negotiation skills: Building strong supplier relationships, securing favorable terms, and resolving conflicts effectively.
• Risk management expertise: Identifying potential vulnerabilities and implementing strategies to mitigate risks and maintain continuity.
• Customer-centric mindset: Focusing on delivering value to customers through reliable, responsive, and cost-effective supply chain solutions.

All of this takes strong executive leadership for rethinking supply chains.

PIXCELL Executive Search — Finding the Right Leader

The right leadership in your organization has always been critical to success, but today’s leaders are facing new challenges. The skills needed to navigate modern supply chains and build resiliency are key to success.

PIXCELL’s executive search process is designed to help you find the next generation of leadership for your business. We take a holistic approach to understand your specific needs and create tailored solutions to find you the right fit.

Whether supply chain stability is at the top of your list or you are facing other challenges in your industry, our executive search process will align with your corporate strategy and organizational culture. Strong national and regional sources, coupled with robust international executive search capabilities, provide PIXCELL with broad access to top-tier executives with the expertise you need for success.

Our recruitment services target mid-level and senior executives with deep expertise in industries including:

• Information Technology & Digital Transformation
• Manufacturing & Engineering
• Public & Parapublic Sectors
• Retail & Distribution
• Real Estate & Construction
• Financial Services
• Professional Services
• Pharmaceutical & Life Sciences

We offer coaching, psychometric testing, and guidance on executive compensation to help you find the best-qualified candidates and provide the resources you need to overcome your business challenges.

Contact PIXCELL online to discuss your executive search needs or call +1 (514) 427-1364.