Thriving in the digital age: The rise of the PAL supply chain and why businesses need a Copernican business revolution

Abstract

For those unaware of the process of creative destruction and the waves of technological change powered by it, this is a confusing and disorientating time. Unlike the downswing period from the late 1980s until the crash of 2008, the past can no longer be confidently used as an indicator of the future, which creates havoc for those tasked with developing plans and forecasts. In this world of uncertainty and unpredictability, resilience and agility have replaced cost-cutting and offshoring as supply chain leaders’ primary objective. The COVID-19 pandemic that swept across the globe in 2020 rapidly changed consumer behaviours and forced businesses to close, sending the world into government-mandated lockdown. Businesses were presented with a choice: adapt, rely on government-sponsored life support — or die. Yet, some companies have seen opportunity in the uncertainty, embracing the theory that the best way to predict the future in these uncertain times is to create it. They are experimenting with the revolutionary new technologies that have emerged during this wave, creating new business models that transform the supply chain but also exponentially increase its complexity. But to take advantage of these new machines requires a new mindset and a willingness to embrace new methods and management processes, which is where many companies are struggling. This paper aims to explain why this period of rapid, transformative change is happening, what changes we can expect throughout the decade, and how supply chain and business leaders need to adapt to not just survive through the period — but thrive.