Craig Lyjak, Global Manufacturing Transformation Solution Leader at EY, explains why forming partnerships is crucial to supply chain optimisation.
The curveballs being thrown by digital transformation mean the progression of supply chains and business operations are no longer linear.
While this often leads to added complexity, it also offers opportunities for innovation.
As organisations continue to juggle inflation, geopolitical conflict and shipping delays, EY asserts that many traditional supply chain processes will soon be deemed obsolete.
The consulting giant sees it as crucial for organisations to build ecosystem partnerships, combining knowledge of technology and assets to more efficiently navigate supply chain obstacles.
Here, Craig Lyjak, Principal and Global Manufacturing Transformation Solution Leader at EY, explains why organisations should form partnerships to optimise their supply chains, combining resiliency and flexibility to maintain consistent and efficient activity.
Tell us a bit about yourself and your role
I’m an engineer by training and transitioned into consulting after more than 16 years in the manufacturing sector, where I focused on leadership, capital projects and data analytics.
Almost nine years ago, I joined EY, where I currently serve as the Global Manufacturing Transformation Solution Leader, as well as the Global Leader for EY’s Procter & Gamble alliance.
My focus is to enable manufacturing digital transformation by empowering the end user, reducing barriers to adoption and providing business leaders with the capability to manage change.
How does EY assist clients in the supply chain space?
While the EY supply chain practice is broad, there are three key areas that set EY apart from the rest of the market:
- True end-to-end transformation: EY can help address every aspect of the supply chain, from strategy, strategic architecture, operational excellence and resilience. This is enabled through advanced technologies such as data analytics, blockchain, machine learning, robotics and AI.
- Tax integration in supply chain operations: By incorporating tax expertise, EY uncovers significant savings opportunities that can help fund and drive transformational initiatives.
- Arm-to-arm implementation: EY ensures seamless execution across all parts of the supply chain, from high-level strategy to on-the-ground operations, technology implementation and process improvements.
Why are traditional supply chain processes increasingly being deemed obsolete?
Traditional supply chain processes are becoming obsolete due to the rapid advancement of technology and the increasing complexity of modern challenges. The limitations of traditional methods drive companies to adopt digital, adaptive solutions that can thrive in today’s environment.
Transitioning from paper-based or Excel-based planning to digital solutions is now easier, more accessible and more affordable than ever. The capabilities of advanced tools, such as automation, real-time data analytics and AI-driven forecasting, far exceed traditional methods, optimising decision-making, minimising errors and boosting efficiency.
In an era where disruptions like port strikes or labour shortages become more pervasive, heavy reliance on manual systems is insufficient for effective supply chain management and business continuity. For instance, recent port strikes prompted companies to explore alternative supply routes, necessitating advanced data analytics and AI tools for strategic decision-making.
Additionally, organisations face pressure to reduce their carbon footprint while addressing talent shortages, requiring flexible, data-driven solutions to meet sustainability goals and workforce demands.
Digital transformation means the progression of supply chains/business operations are no longer linear. What challenges/opportunities does this bring?
Traditional, linear business processes follow a predictable path: identify a problem, implement a solution and achieve a result.
However, digital transformation disrupts this model by introducing interconnected technologies and stakeholders, leading to non-linear progression. This makes cause-and-effect relationships unpredictable, with sudden leaps in efficiency through automation or improved forecasting.
While these advances offer potential benefits, they expose gaps in digital readiness, requiring organisations to adapt quickly. Leaders may have ambitious plans for technologies like AI or blockchain, but many lack the technological maturity, infrastructure, or workforce skillset to support them.
Moreover, the human aspect is often underestimated. Emotional resistance from employees, as highlighted by EY’s Humans@Center research, can hinder adoption. Without a clear, compelling vision from leadership, fear of change can slow progress. Non-linear approaches encourage agility, allowing organisations to experiment, iterate and upskill employees along the way, ensuring that digital transformation is embraced across all levels.
How crucial is it for organisations to build ecosystem partnerships?
In today’s rapidly-evolving technological landscape, building ecosystem partnerships is essential for organisations to remain competitive and innovative. No company can explore every new possibility alone and collaboration with other firms, startups and technology providers allows businesses to share expertise, access new tools and co-create solutions.
Historically, ancient Greek philosophers could master all available knowledge because it was limited, but today, the vast expansion of information and technology makes this impossible for any single entity.
Ecosystem partnerships offer access to specialised expertise and emerging technologies that would be difficult to develop in-house. For example, a company aiming to reduce virgin plastics might collaborate with a sustainability-focused partner rather than investing in its own research.
However, companies must balance collaboration with maintaining their competitive edge, protecting core proprietary areas while being open to external innovation. Effective ecosystems also require talent strategies to manage partnerships, ensuring that organisations can integrate external innovations and thrive in a complex, fast-paced environment.
What advice can you give to organisations looking to form such partnerships?
A future-focused approach is essential. Begin by envisioning operations three to five years from now, considering not just technology but the employee experience as well. How will tools like Gen AI reshape daily workflows? How will processes become more efficient? By understanding how digital transformation will impact employees, leaders can identify where ecosystem partnerships are needed to achieve that future vision.
A practical starting point is to analyse an employee’s typical workday to pinpoint areas where technologies like Gen AI can boost productivity and decision-making. This insight helps decision-makers to work backward, outline the steps required to reach goals and form the right foundation for an ecosystem strategy.
Additionally, when identifying capability gaps that could be filled by partnerships—whether in technology, sustainability or other key areas—firms must ensure to also assess where a partner ecosystem could add more value versus where expanding internal resources would be beneficial. That way, organisations are strengthening their core competencies where it makes the most sense and strategically allocating resources to form the best partnerships for the business.
It’s critical to start small, focusing on partners aligned with the long-term vision. These initial partnerships allow for testing, learning and refining before expanding further, ensuring alignment with an organisation’s transformation goals.
What benefits can forming these partnerships bring?
Forming partnerships allows organisations to accelerate innovation and optimise resource allocation. By collaborating with companies already working in relevant areas, businesses can quickly access expertise, resources and solutions without dedicating substantial internal efforts.
Many companies may hesitate to invest in advanced technologies like Gen AI due to the uncertainty of their long-term viability. However, ecosystem partners bring this expertise, eliminating the need for businesses to go through trial-and-error phases internally. In addition, companies can explore new technologies without shouldering the full financial or operational burden, allowing them to focus on core strengths while partners fill expertise gaps.
For example, startups and tech companies are reshaping AI and automation, offering solutions that enhance business processes. Instead of investing in internal development, companies can partner with these innovators to leverage cutting-edge and well-established solutions, saving both time and effort.
Our work with ServiceNow is a great use case for the progression to digital. ServiceNow embarked on the connected industry worker use case within the supply chain industry, exploring how they can take complexity and insert it in workflows to obtain a simplified action list. Additionally, they are exploring how digital can enhance and augment people so that they can deliver more thoughtful and impactful work.
