Talking Supply Chain: Embracing VUCA

VUCA, or volatility, uncertainty, complexity and ambiguity, can be traced to the mid-1980s. Most accounts attribute it to the American military, but it certainly can apply to almost any situation dealing with disruption, including the supply chain.

The problem with VUCA is that it can be a crutch. Why didn’t the product arrive on time? Well, a ship got stuck in the Suez Canal. A hurricane shut down production for a week. There was a union strike at the plant. In other words, VUCA happened.

So how do we manage around VUCA? Former Gartner supply chain analyst and current vice president of industry solutions for GAINS Amber Salley joined Talking Supply Chain host Brian Straight to discuss how businesses can manage in a VUCA environment.

“We have identified what we call a performance gap and you can think of this performance gap as the gap between how you want your supply chain to operate and how you want to be able to fulfill your customer needs at a reasonable cost, and the methods that you have in place to actually manage your supply chain to meet those goals,” Salley said. “And this performance gap is greatly impacted by VUCA.”

Salley said that to effectively manage in a VUCA world, supply chains must embrace VUCA.

“Rethink your approach to managing your supply chains and how you rethink your approach to leveraging technology,” she said. “You are in a better position to start to narrow that performance gap which would give you a competitive edge against your competitors.”

Salley has more advice for businesses, including how to undertake a mindset shift to ensure your business will survive VUCA. Listen today.