What does it mean to innovate?
Innovation often conjures up visions of incredible new inventions, breakthrough technologies, and mind-blowing devices that change the world as we know it. There’s certainly nothing wrong with incredible new inventions, but inventing things may not be the business you’re in.
You may be in a service business, like overnight package delivery.
Or in a long-established industry, like providing lumber for construction.
I understand that. But even if you’re not running to the Patent Office every day, one thing is absolutely true: As a leader in your organization, you can innovate.
I don’t care if you’re in the sand and gravel business: You can innovate.
And what’s more, you must innovate and stay ahead of your competition.
You can do it because innovation doesn’t happen only in the R&D lab. You can make innovation happen at every level of your organization, from the loading dock to human resources to marketing, and right up to the C-suite.
Consider your supply chain—the backbone of your business.
In the twentieth century, a job in logistics was probably pretty boring. You made sure the parts or raw materials from the supplier got loaded on the truck or railcar and delivered to the factory’s warehouse. Then you made sure the finished goods got loaded on the truck and delivered to the distributor’s warehouse. At the end of the day you went out for a beer.
How times have changed!
Today, supply chain logistics drives value creation. As a functional area, it’s just as competitive as sales or marketing. Why? Because every loss of time, quality, or materials at any point on the supply chain represents a loss of value that must be made up downstream. If a shipment of parts is late, it can cause a ripple effect of wasted labor while forcing the downstream functions to work faster to make up the lost time. The same consequences apply for missing or damaged or incorrect materials.
In contrast, a flawless supply chain allows for greater downstream value creation.
If you’re not pursuing supply chain innovation, you risk falling behind.
Supply chain innovations are being deployed at a faster rate than ever. Are you up to speed on these emerging innovations?
Robotic forklifts. Intra-Logistics with Integrated Automatic Deployment (LIAD) is developing autonomous forklift trucks that can operate safely and efficiently in warehouses alongside human co-workers.
Exoskeletons support warehouse workers. Distributors can reduce back injuries and speed object handling by outfitting workers with special external braces. Developed by Dutch firm Laevo, the braces provide support using a spring system acting as a counterweight.
Self-sailing electric cargo ship. Kongsberg Maritime has teamed up with fertilizer company Yara International to build the container ship Yara Birkeland, designed to haul fertilizers between three ports in southern Norway. Remote operation will start sometime in 2019 and by 2020 the ship will be fully autonomous, saving 40,000 truck journeys per year.
Blockchain technology used to increase pharmaceutical supply chain security. The Drug Quality and Security Act (DQSA), enacted by Congress in 2013, outlines steps to build an interoperable electronic system to identify and trace certain prescription drugs as they are distributed in the United States. The MediLedger Project has been launched to help prevent counterfeit medicines from entering the supply chain. The system utilizes blockchain technology to track and trace prescription medicines.
There are many more emerging supply chain innovations! Will all of them be useful to you and your organization? Of course not. But just one innovation that benefits your company could mean the difference between falling behind and staying ahead of the competition.
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