So when is such a task force needed?

When answering this, Meers distinguishes between white, grey and black swans. By white swans, he means events that have been announced in advance, such as Brexit or the US elections.

‘Those are the events we can prepare for and for which we do not need a task force,’ Meers states.

‘In contrast, companies do set up task forces for grey swans: events that we know could happen one day, but which cannot be predicted. Think of pandemics, an earthquake or the escalating conflict in the Middle East. The same goes for black swans: rare events that no one could have foreseen.’

Actually, there should be no immediate need to set up a task force for all grey swans, Meers claims.

‘We know very well which regions are prone to earthquakes and which suppliers are located there. We can figure out in advance what measures to take if one of those suppliers is put out of action. By incorporating some of the processes, tools and competences of the task force into the line organization, we can handle such disruptions without setting up a special team. That helps to make the supply chain resilient.’

After disbanding the task force, Bosch did indeed integrate a number of processes and methodologies into the line organization.

‘Now, when we see that the availability of certain raw materials or components is coming under pressure, we try to secure supply with long-term contracts. Or we try to redesign our products featuring components that are available in sufficient quantities.’

Due to geopolitical conflicts, new trade barriers and climate change, the number of grey and black swans has increased significantly in recent years. Like Bosch, many companies have been forced to embark on a transformation and improve their supply chain resilience.

That transformation is not just limited to their own organization, but extends to the entire ecosystem in which they operate. ‘Many supply chain leaders realize that they need to look beyond the four walls of their own company, towards suppliers, customers and other supply chain partners. How can they get a better view of everything happening in the ecosystem that impacts their own supply chain?,’ says Kristof De Coster, Partner and Supply Chain Lead at consulting firm EFESO.

Such companies regularly approach EFESO, asking how to set up such a transformation. ‘Ecosystem transformation is the next step towards a more mature supply chain,’ De Coster comments.

‘But we see many companies struggling with this transformation. Apparently, there are all kinds of factors or circumstances that prevent companies from taking the next step. We want to know what they are. That was the reason for us, together with Supply Chain Media, to ask almost a hundred supply chain executives about their experiences with supply chain ecosystem transformations.’

Chemical company Covestro has gone through a transformation in which the focus was also on further supply chain integration.

‘We now have one organization in Europe that is responsible for all supply chain-related activities including customer service, logistics, credit management and trade compliance,’ says Hanno Brümmer, who is responsible for Covestro’s supply chain and logistics in Europe, the Middle East, Africa and Latin America.

Brümmer explains that just a couple of product groups account for the largest volumes within Covestro’s chemical product portfolio.

Our focus is on polyurethanes and polycarbonates in liquid and solid form, which we supply in drums or bags, for example. For that, we only need one supply chain with one network of warehouses. Thanks to the transformation, we now have one uniform supply chain for all divisions.’

Another reason for transformation is the move towards circular business models. For a long time, the company used almost exclusively fossil raw materials, but in recent years the focus has been shifting increasingly towards bio-based and recycled materials.

‘We are now developing our own processes to use those materials as raw materials. For instance, we are able to convert the foam from old mattresses back into its original components through chemical recycling. We can also turn old car tyres back into raw materials for completely different plastic products. These kinds of processes considerably increase the complexity, and our ecosystem is growing.’

The transformation underway within dsm-firmenich is the result of the merger that took effect a year and a half ago. dsm-firmenich is strong in food ingredients such as enzymes that help food producers increase productivity, for example. dsm-firmenich’s operations include a division that develops new flavours on behalf of those same food producers.

‘We have merged those activities into the Taste, Texture & Health division, which suddenly makes us a one-stop shop,’ says Richard Oosterhoff, who is responsible for the operation of this division.

The transformation has already yielded its first concrete results. The company is experiencing a growth spurt, which means the factories are even fuller and delivery reliability is under pressure. That is why Oosterhoff wants to invest heavily in expanding production capacity, but it will take some time to achieve.

‘Right at the start, we merged the supply chain organizations of both companies, with dsm-firmenich bringing in its industrial mindset. As a result, we have been able to increase the production capacity of the Firmenich plants by 10% and sometimes even 20%.’

A fully integrated supply chain is out of the question for now, Oosterhoff says.

‘We do as much as possible together. For instance, we now have a joint team working on implementing new technologies and building new production lines. However, both organizations still have their own ERP systems, which we cannot link. Of course, in the long term, we want to move towards a single platform that allows us to serve our customers even better. But it will be another four or five years before that happens.’