Singapore Supply Chain Connect 2024: “Everyone loves Excel” – and other supply chain challenges to innovation
4 Oct 20244 min read
Summary
- At Singapore Supply Chain Connect 2024, industry leaders reflected on the tension between tradition and transformation in global logistics. Dyson’s Michelle Shi-Verdaasdonk humorously observed that “everyone loves Excel,” highlighting the sector’s continued reliance on legacy tools that limit innovation. Speakers agreed that the industry is entering a critical phase where digitization, regionalization, and talent development must accelerate to meet new demands.
- McKinsey’s Dr. Knut Alicke described the past few years as a “flock of black swans,” citing repeated disruptions and warning that many supply chains show a “false sense of confidence.” He and other experts identified four priorities for resilience—redesigning networks, advancing digital tools, developing end-to-end talent, and elevating risk management to the executive level.
- Executives from Henkel, TE Connectivity, Mondelez, and BD emphasized the need for connected ecosystems, data-driven decision-making, and sustainability integration. As Singapore positions itself as a hub for innovation and skills development, the event underscored that the future of supply chains will depend on bold thinking, modern tools, and cross-sector collaboration.
At the Singapore Supply Chain Connect 2024 event, organized by the Economic Development Board (EDB) and held Thursday at Marina Bay Sands, industry experts gathered to discuss the state of the global supply chain sector and the enduring challenge of driving innovation in logistics.
Amid the discussions, Michelle Shi-Verdaasdonk, chief supply chain officer at Dyson, noted with a chuckle, “Everyone loves Excel” — a nod to the industry's reliance on traditional methods, which often hinder deeper innovation.
According to Dr. Knut Alicke of McKinsey, the global supply chain has faced a “flock of black swans” since 2020, from the pandemic to the recent port strike on the East Coast of the U.S., which is expected to reduce global container availability by 15%.
The global logistics industry, especially in Southeast Asia, is undergoing significant transformation as businesses grapple with a new era of supply chain challenges and make investments to serve customers better. Companies are relocating critical operations closer to customers, and Asia’s governments are actively investing in creating ecosystems — including startups and talent-skills upgrades — to foster innovation and industry growth.
However, as Alicke noted, a string of disruptions has exposed cracks in supply chain resilience, leading to questions about the sustainability of existing systems. "Global supply chains show a false sense of confidence in the new normal as progress on resilience measures is stagnating," Alicke remarked. While he acknowledged that you can’t prepare for every disruption, he stressed the importance of building frameworks to mitigate risks.
Alicke identified four areas where supply chains must evolve to remain competitive and resilient:
Footprint: Companies are shifting some of their operations locally to reduce exposure to global shocks. This regionalization strategy enhances resilience but requires careful network design.
This sentiment was echoed by Thomas Holenia, president of Henkel Singapore, who stressed the importance of innovation in supply chain operations, especially when it comes to working with the right partners. "You cannot operate a disconnected supply chain," Holenia said, emphasizing the need for alignment with key stakeholders. He praised Singapore’s environment for fostering innovation and risk management but pointed out that local senior talent remains scarce. Henkel is looking to other regional markets like Indonesia and Japan for talent and operational expansion.
Digitization: Implementing advanced digital tools which can operate as an early warning system helps map risks and improve scenario planning, allowing companies to anticipate and respond swiftly to disruptions.
Jim Tobojka, COO and SVP of global operations at TE Connectivity, highlighted the critical role technology plays in transforming supply chains. He shared insights on AI-driven transformation, explaining how TE's internal ChatGPT system, "TellMe," enables employees to quickly access engineering and process-related information, improving efficiency and safety. Tobojka emphasized that technology is not just a back-end solution but a value-added tool that enables customer-facing roles, driving growth.
Talent: Developing talent that "thinks and breathes end-to-end supply chains" is critical. Supply chain professionals must be equipped with the right skills, from data analysis to operational excellence.
Cloris Zhang, SVP of integrated supply chain at Mondelez, discussed how supply chains are evolving, especially in the food industry, where local production, sustainability, and access to talent are crucial. Zhang stressed the importance of T-shaped talent—employees with broad supply chain knowledge but deep expertise in specific areas like data science or sustainability. Companies must equip their teams with the ability to read data, operate advanced technology tools, and navigate the complexities of modern supply chains.
Supply Chain Risk Management: According to McKinsey, only 12% of senior management fully understands the importance of supply chain risk management, making it essential to elevate this conversation at the executive level.
Verdaasdonk added another dimension to the discussion, stating that "supply chains are not sequential." She emphasized the importance of looking at supply chains holistically—from the very beginning of the value chain—in order to build trust in data and make informed decisions using advanced tools.
Addressing the increasing importance of sustainability, Ampy Aswin, VP of supply chain and procurement at BD, emphasized embedding sustainability into supply chains, from packaging to recycling. "Singapore is the central nervous system," Aswin said, referencing how the city-state allows for quick deployment of innovative solutions and swift access to customers from surrounding markets.
As global supply chains undergo dramatic changes, it’s clear that innovation will be driven by a mix of regionalization, digital transformation, and talent development. While traditional tools like Excel remain beloved by many, they also symbolize the challenges the industry faces in keeping pace with rapid technological change.
The consensus among the speakers was that the logistics industry is at a critical juncture, where companies must not only invest in technology and talent but also rethink how supply chains are designed and managed. As Shi-Verdaasdonk aptly put it:
“
“Be bold, think about the future.”