Creating Innovation in the Supply Chain

Many supply chains struggle to improve their level of innovation and in many cases it doesn't have to be as challenging as it might sound. The solution starts with management and how they define supply chain innovation. Does supply chain innovation have to be a new algorithm that can distribute goods more efficiently or can supply chain innovation be something as simple as using a "lazy susan" or carousel that can rotate a PC in 360 degrees so assembly line workers can build it faster. It can be both. While the R&D department might be the only qualified team with the mathematical skills to develop a complex algorithm, everyone from manufacturing line workers to delivery drivers can also be innovative simply by sharing their ideas on how they get their job done. Several years ago, a truck driver at one of IBM's 3PLs suggested that we put the shipping label on the same side of the box before it gets loaded on the truck, eliminating the time it takes him to search for the packing slips. After sharing this with the rest of his team and other delivery drivers it considerably improved shipping and reduced the frustration that came with searching for the label.

The main thought here is everyone in the supply chain and the company for that matter should be given the goal to improve innovation. Here are some tips to help get you started:

1. Make innovation something every person does everyday.
2. Focus on collaboration as to share ideas and approaches.
3. Provide support at the local level.
4. Continuously celebrate innovative ideas and those that create them.