As global challenges continue to impact and disrupt the supply chain, it’s important that supply chain planners have the best tools and resources necessary to plan for an unpredictable future. In our latest video podcast, Blaine Fitzgerald, Chief Financial Officer at Kinaxis, and Jim Bralsford, Sr. Director of Industry and Solutions Marketing at Kinaxis, discuss long-term planning, the financial metrics that matter most to C-suite executives and how we can learn from disruption to better prepare for the future.
As the world continues to face challenges from pandemic-related disruptions to potential global recessions, it is now more important than ever to equip supply chain planners with the tools and knowledge they need to respond to crisis. Blaine Fitzgerald, Chief Financial Officer at Kinaxis, and Jim Bralsford, Sr. Director of Industry and Solutions Marketing at Kinaxis, discuss the benefits of long-term planning, diversifying costs and minimizing financial impact to business while preparing for the future.
Blaine states that while some geographies such as US, Japan and parts of Europe have gone in and out of recession, there are other financial indicators such as the inverted yield curve that could imply that the recession isn’t over yet. This means organizations still need to take proactive measures to reduce the impact of recession and inflationary pressures on supply chains. To help companies accelerate out of a slow-growth period, Blaine recommends thinking of the supply chain as a strategy center and not just as a cost center; investing in digitalized planning solutions; engaging in short-term vs long-term supply chain planning and diversification of cost. [5:53]
Blaine also talks about the independent academic research that analyzed the financial performance of about 700 companies (including Kinaxis customers) across different industries over the last 3 years. The results showed that financial metrics improved in companies that used a digital supply chain planning solution, with average growth revenue of 3.62%, vs peers that didn’t use a supply chain planning solution, where growth shrunk by 5.77% on revenue. The results of this study have solidified and elevated the rank of supply chains as a strategic function with direct impact on financial success, in the eyes of boards and executives. This pivotal shift is a key learning from the pandemic and recession that CFOs and CEOs cannot overlook going into future business planning. [10:37]
To learn more about Blaine Fitzgerald, Chief Financial Officer, Kinaxis: https://www.linkedin.com/in/blaine-fitzgerald-71a07972, Twitter: @Blaine_Fitz
To learn more about Jim Bralsford, Sr. Director, Industry and Solutions Marketing, Kinaxis: https://www.linkedin.com/in/jimbralsford/