The Acceleration of Diverse Manufacturing and Logistics Supplier Digitization

The formation of the 501 (c) 3 DMSCA Supplier Development Foundation (Foundation) provides DMSCA members and nonmembers with a vehicle for a measured and meaningful Corporate Social Responsibility (CSR) response to today’s Black Lives Matter social injustice movement.

Context for the recommended response are as follows:

Where an objective of DMSCA is to develop an ecosystem of performance-driven and managed diverse manufacturing suppliers for engagement in corporation’s strategically sourced supply chains through the Corporate Mentoring Program (CMP), the formation of the Foundation has the potential of directly supporting supplier implementation of recommended improvement initiatives toward the larger objective of economic development and job creation in impacted communities.

Before addressing the recommended manufacturing supplier digitization strategy, let’s review some powerful points made about manufacturing in the accompanying article, “First Person: The Importance of Manufacturing to the U.S Economy.

  • Manufacturing leads to more R&D, innovation, productivity, exports, and middle-class jobs than any other sector
  • For every $1.00 of domestic manufacturing value-added, another $3.60 of economic activity is generated
  • For every 1 manufacturing job, 3-4 support jobs are created in non-manufacturing industries in impacted communities

Where small and mid-size suppliers can constitute up to 80% of the value in a large corporation’s supply chain, the diverse manufacturing digitization initiative is based on leveraging corporate response to the following major challenges:

The Three Major Corporate Strategies

  • Execution of SUPPLY CHAIN RESILIENCY. China 1+2+3 strategies such as near shoring and reshoring to drive increased levels of performance risk management and mitigate future supply continuity disruptions experienced during COVID-19 (73.0 % of large corporations encountered detrimental supply side disruption and 64.8% reporting demand side disruption.)

  • Deployment of SUPPLY CHAIN DIGITIZATION strategies to achieve an integrated and connected predictive network of trading partners for improved collaboration, product quality, improved lead times, data accessibility, and visibility into supplier performance. (Just some key metrics will include % visibility into the supply base, % of cyber-assessed connected suppliers, and % of operations handled manually vs. through automated technology.)

  • Interest in crafting measured and meaningful Corporate Social Responsibility (CSR) responses to systemic RACIAL INEQUALITIES AND SOCIAL INJUSTICES undergirded by the national “Black Lives Matter” movement. (Some meaningful examples include increased levels of training and employment in impacted communities and economic impact of engaged diverse manufacturing suppliers.)

 

Linking Major Corporate Challenges

As major corporation are seeking “Supply Chain Resiliency” propelled by Supply Chain Digitization, diverse manufacturing risk marginalization as the already fast maturing Industry 4.0 supply chains get even faster. Most diverse manufacturers are in the diverse communities where they employ workers and generate new jobs as demanded by the workforce. This challenges the use of digitization. Such an initiative is a win-win situation for all as suppliers not only develop capabilities and capacities through DMSCA, the Foundation can now extend their development for competitiveness in increasingly digitized supply chains.

The Project: Acceleration of Diverse Manufacturing Supplier Digitization

Supply chain digitization is not a stroll in the park; it is a journey that will require strategy, training, and resources. As already well positioned and resourced non-diverse manufacturing and logistics suppliers mirror their customer’s digitization, less resourced and competitively positioned diverse suppliers risk marginalization (repeated for emphasis).

Digitization acceleration coupled the training provided in the DMSCA Corporate Mentoring Program (basic supplier development training) can provide diverse suppliers with the performance differentiation necessary to be both competitive in evolving digitized supply chains and have meaningful and sustainable economic impact in diverse communities.

Learn More and Become a Donor: DMSCA Supplier Development Foundation (DMSCA-SDF)

Request a meeting and learn more about this exciting diverse manufacturing and logistics digitization training and development initiative by contacting David Burton at dburton@dmsca.us  or through LinkedIn.

 

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