Supply Chain Management: Lessons and Realizations

Supply chains are incredibly important, yet fragile. Companies can spend years building networks, processes, and supplier partnerships, only to lose them with one mistake. 

But reliable and adaptable systems often come from trial and error, and each lesson helps businesses improve. Every order, product planning document, and shipment is an opportunity to improve and develop stronger supply chains. 

"Supply chain success is rarely the result of one great decision,” says KrisTech’s Director of Supply Chain, Marcus Tagliaferri. “It comes from having the right people, the right products, and the right processes working together. Strength in all three creates a resilient organization that can adapt, compete, and grow." 

Often, lessons typically fall into one of three buckets: people, products, or procedures. Though they seem separate, they combine to form the basis of a strong, adaptable supply chain management system. 

People: The Engine Powering the Supply Chain 

From sourcing and manufacturing to shipping and service, every company relies on people to get the job done. 

The role people play in the supply chain is undeniable - without them, the system doesn't function. 

Relationships Matter 

The supply chain is a vibrant ecosystem made of retailers, manufacturers, consumers, and suppliers, and everyone relies on each other. 

When problems occur in the ecosystem, everybody feels the pressure. Let's say retail sales rise 10% for a popular widget. Retailers place larger orders with their distributors to meet demand, which then forces manufacturers to produce more widgets. To meet higher production metrics, the manufacturer then has to rely on the supplier for more source materials. 

At each step in the supply chain, the amount needed to meet anticipated demand grows, forming a bullwhip effect. If the demand isn’t there, businesses could struggle to move stock. 

"One of the biggest supply chain lessons I've learned is that the deeper you go with your partners, the stronger and more resilient your business becomes,” Tagliaferri said. “The best relationships are not built around buying and selling. They are built around trust, transparency, and a shared commitment to solving problems and growing together. 

When you move beyond transactional supplier relationships and start viewing companies as true partners, you create opportunities that benefit everyone involved. Those win-win relationships lead to better communication, better service, stronger performance, and ultimately a more reliable supply chain." 

Poor relationships with suppliers may also impact costs. According to the Institute for Supply Management, poor supplier partnerships result in a 12% increase in procurement costs. Incredibly, disruptions in the supply chain can cost some manufacturers hundreds of thousands of dollars a day. 

Over time, weak relationships cause higher costs, product delays, poor communication, and unplanned overstocks or stockouts. Those issues also directly affect consumers, who may experience shortages, higher prices, or costly delays. 

Good Relationships Pay Dividends Early and Often 

Although it’s hard work, aligning supply chains pays off. Strong networks have better communication and feedback loops, resulting in higher product quality and more market share. Companies within the system also avoid risky situations, thanks to constant contact with others in the chain. 

Improvement is a Mindset 

The technology and processes used in today's supply chain are more complex than ever. Employees must rise to the challenge and level up, too. 

Many teams are hungry for knowledge and want to find ways to improve operations and their own skill sets. Utilizing skill-building programs gives teams new tools and the confidence needed to address challenges proactively. 

When Kimberly-Clark launched its learning program in early 2026 to upskill its workforce, it focused on 17 high-need areas. According to the consumer goods manufacturer, those finishing the program showed an average of 60% skill growth. 

Humans increasingly share the production floor with robots and automation platforms. Strategically investing in training programs helps address skills gaps and gives teams more confidence in their jobs. That confidence leads to higher quality products and happier customers. 

Additionally, investing in employees is a marketable perk for companies that want to retain and attract top talent. Ongoing training offers critical support, which boosts retention rates and improves morale. 

People Become a Strategic Advantage 

Automations and artificial intelligence have boosted productivity, but humans are still very much behind the wheel. 

People make manufacturing decisions, shape customer experiences, and act quickly when disruptions damage the supply chain. The right people with the right knowledge and in the right positions can minimize risk without missing opportunities. And, sure, companies can buy new technology and tools, but people bring critical thought, culture, and passion to the job. Those skills are irreplaceable and create long-lasting, positive cultures. 

"The best technology in the world can't replace engaged people,” Tagliaferri explained. “Engaged and skilled employees bring the knowledge, judgment, and commitment needed to solve problems, build relationships, and continuously improve. In the supply chain, where change is constant, people remain the most important asset and the strongest competitive advantage.” 

Facilities and companies can also create, develop, and improve processes and operations to improve overall performance. Popular programs include Lean Six Sigma, 5S, and Kaizen, which promote incremental productivity and organizational improvements. 

Products: Availability, Quality, and Lifecycles 

Being unique is difficult, especially in commoditized industries. 

Luckily, it’s still possible to stand out, make a name, and carve out a niche in the marketplace. Whether it's product availability, seamless logistics, or a rapid response structure, every bit helps. 

Inventory is a Balancing Act 

When companies have inventory available, they can ship products without delays. However, holding too much inventory leaves cash sitting on the shelves. 

Standardizing audits helps teams track product movement and highlight popular and slow-moving products. Using that information alongside historical trends and market data helps teams right-size inventories to maximize profits. 

Teams may also manage inventory levels by leaning into Just-in-Time production. Just-in-Time production reduces storage costs and prevents obsolete products from taking up valuable warehouse space. While this manufacturing style keeps inventories low, it puts the company at risk during a supply chain disruption. Companies can also struggle to meet demand quickly if there's a sudden surge for a specific product. 

Distributors and retailers may invest in inventory tracking and safety stock programs to meet immediate needs, then adjust their stock through demand planning. Proper demand planning helps managers spot trends, reduce risk, and maintain a steady stock availability. 

Supply Chain Visibility Reduces Surprises 

In 2025, more than one-third of companies struggled with monitoring shipments. Losing visibility on a shipment doesn't just open the door to theft or loss; it directly impacts customer trust. 

Visibility isn’t a nice-to-have in today’s supply chain — it’s a necessity. High-visibility networks are more efficient and experience fewer excess costs, bottlenecks, and stock issues. 

Like other areas of the supply chain, artificial intelligence has positively affected our visibility. According to Tive, 60% of companies utilized Internet of Things (IoT) technology in 2025, while 45% used AI for supply chain operations. These systems analyze data points across the network, marking growth opportunities and optimizing operations. 

Blockchain development is another way companies have opened the black box, giving them insight into the supply chain and bolstering security. The digital source of truth lets companies see every step of the supply chain, boosting transparency, reducing theft, and increasing efficiency. Everyone also has access to the same data, so everyone is on the same page every step of the way. 

Transportation Means More Than You Thought 

Imagine sending out an emergency next-day shipment to a customer, and it suddenly goes missing. 

Finding the right logistics partners helps manufacturers and distributors hit deadlines and avoid costly delivery delays. A third-party logistics (3PL) company can handle every aspect of shipping, including routing and booking shippers. They also have deep-rooted relationships with various carriers, which brings scalability and transparency. 

But transportation is more than moving freight — it can make or break an operations and logistics program. Investing in transportation partners reduces overall fuel use, optimizes routes, and increases shipping options. 

With fuel costs rising, multimodal options may be more flexible and less expensive than trucking. This may be especially true for long-haul shipments, which use trains to move goods most of the way, then have trucks take over the final leg. 

Depending on the situation and product, intermodal shipping could reduce costs without delays. It may also be a greener option than standard trucking solutions, as trains are much more fuel efficient. 

Processes: Alignment Drives Continuous Improvement 

If businesses don't have the right processes in place, even the best employees will struggle. 

Processes are the glue that holds the operation together, giving employees a pathway to produce high-quality products consistently. When everyone is on the same page, teams move faster, scale better, and adapt to new challenges faster. 

Demand Forecasting is an Art, Not Science 

Predicting the future is impossible, but product planning gets pretty close. 

Product planning is a constant process that combines market research and data with product development, fit, and alignment. When done correctly, the process helps companies get the right products into the right customers' hands at the right time. 

But product planning is more than crunching numbers to see how many items to make for the busy season. Market, supply, and historical trend data help reduce operational errors, foster cross-functional department collaboration, and optimize stock.  

Best yet, teams move much faster with a little help from artificial intelligence. AI-powered programs can analyze thousands of individual data points in seconds, compared to hours or days for humans. This extra speed and accuracy help teams find efficiencies and develop strategies to boost resilience, build customer and partner relationships, and reduce expenses. 

Data is a Blessing and a Curse 

It's nearly impossible to make long-term decisions without enough of the right data. 

Data is the lifeblood of any supply chain team. If they don't have access to the right information, or enough of it, it creates blind spots. Those blind spots eventually lead to poor decisions, resulting in delays, overstocks or stockouts, and logistical nightmares. Worse yet, weak or missing data can skew answers, leading to missed opportunities and inaccurate results. 

The same can be true when you have too much data. While AI can find underlying trends within specific datasets, it helps to know what data is worth analyzing first. If teams are collecting everything and anything as data, it eventually leads to analysis paralysis. 

Risk Mitigation and Management are Crucial 

Global supply chains are constantly under attack from outside forces, leaving managers and their teams on high alert. 

Excessive data also carries practical problems. It can lead to higher digital storage costs, potential data siloing, and even team inaction. Inaction can occur when the data becomes a vanity project instead of a useful decision-making guide. 

Short-term issues like weather events, sudden shutdowns, cyberattacks, or partner problems directly or indirectly cause delays, missed shipments, and lost production. Provided they don't happen often, there may be a few upset customers, but it's possible to smooth things over. 

Longer-term issues, like a recession, changing trends, or tariffs, can fully alter how the supply chain works. Recessions and tariffs may weaken demand, leaving retailers and distributors buying less. In turn, manufacturers produce less, limiting demand for supplier materials as well. 

Meanwhile, geopolitical issues or a global pandemic can immediately rock the supply chain. Companies may have to adapt to new shipping schedules, find nearby partners, or increase stock to maintain production schedules. 

Risk mitigation and management give companies the power to act quickly. By moving faster, they can readily address short-term problems while hedging against long-term concerns. But risk mitigation is more than issuing a contingency plan during an emergency. Often, it means evaluating partners on an ongoing basis, demand planning, and monitoring systems to analyze risk. 

A Constant Quest to Adapt 

Like most aspects of running a business, supply chain teams rarely get everything right. Every day is a new chance to learn from successes, failures, lessons, and relationships. 

As they navigate the world, market conditions, and industry, it's important to see how their actions impact others. Not every decision will be the right one in the moment. However, those lessons help companies understand the environment around them. 

With enough time, data, and a dash of luck, companies can survive and even thrive in today's constantly changing climate.