Clarkston Consulting Insights Archives http://live-clarkstonconsulting.pantheonsite.io/insight-type/blog-post/ Wed, 28 May 2025 02:54:17 +0000 en-US hourly 1 https://wordpress.org/?v=6.8.1 https://clarkstonconsulting.com/wp-content/uploads/2021/12/cropped-Clarkston-Consulting-Color-Mark-32x32.png Clarkston Consulting Insights Archives http://live-clarkstonconsulting.pantheonsite.io/insight-type/blog-post/ 32 32 Four Use Cases for Leveraging ChatGPT for System Implementations  https://clarkstonconsulting.com/insights/leveraging-chatgpt-for-system-implementations/ Tue, 27 May 2025 12:00:39 +0000 https://clarkstonconsulting.com/?p=59400 It’s no secret that ChatGPT and other Generative AI tools have taken the world by storm, providing time savings and increased efficiency. Generative AI is a subset of artificial intelligence that generates text, images, videos, and audio in response to user prompts and questions. AI programs like ChatGPT use deep learning techniques to find patterns […]

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It’s no secret that ChatGPT and other Generative AI tools have taken the world by storm, providing time savings and increased efficiency. Generative AI is a subset of artificial intelligence that generates text, images, videos, and audio in response to user prompts and questions. AI programs like ChatGPT use deep learning techniques to find patterns in data and replicate those to generate content. This can provide benefits across a wide range of business functions, and one area where we’re seeing major impacts is during large-scale system implementations. Today, we outline four recommendations for effectively using ChatGPT during system implementations. 

Leveraging ChatGPT for System Implementations

1. Writing Assistance + Idea Generation 

ChatGPT can provide writing assistance in many ways – from making text more concise, improving verbiage, or drafting an email. It can help summarize meeting minutes and notes into bullet points, which is particularly useful during requirements-gathering meetings. You may also use it to simplify training materials to ensure they are user-friendly.  

If you are struggling to begin your task, getting ideas from ChatGPT may give you the spark and starting point you need to overcome writer’s block. We have seen our clients use this strategy during the project planning phase to determine what is in and out of scope or for brainstorming Key Performance Indicators (KPIs) that they should keep in mind. When using ChatGPT in this way, it’s a good idea to get justification for the recommendations by asking it to also choose which KPIs are best for the given scenario or provide any cons or gaps in the KPIs generated. This will help to mitigate any potential hallucinations.

2. Research & Data Analysis  

System implementations are a great opportunity to identify and implement efficiencies and increase business performance. However, finding and being able to access a wide range of data is often a challenge when trying to identify trends.  

Let’s say that you are doing research on company performance over a given amount of time or comparing businesses in a certain field. ChatGPT can parse through its training data and provide immediate results. It can also assist with data analysis by providing recommendations on how to normalize data, listing visualization techniques that can best portray given data or processing data using specified tools like SWOT or Risk Matrixes.  

While ChatGPT can perform a certain level of statistical analysis, it’s important to confirm that the output is correct. Make sure you ask it to cite sources and provide any math or code used so it can be reviewed by an expert on your team.   

3. Understanding or Generating Excel Formulas or Programming Code  

ChatGPT is very efficient at creating Excel formulas and generating programming code. Submitting prompts like “Give me an Excel formula that does …” or “Generate PowerShell programming code for …” will reduce the time needed for online research and programming trial and error. Excel is often used during data migration, so ChatGPT can be helpful with field mapping, data conversion, and report creation.   

ChatGPT can also assist with troubleshooting formulas and code that you write. Simply load your formula or program into the tool, and ChatGPT will automatically resolve the issues for you. If you are using Excel, Copilot is another generative AI solution that integrates directly into Excel to provide similar functionality. 

4. Summarizing Digital and Image Inputs 

Tools like ChatGPT can summarize document and visual images into high level and/or specific text descriptions. For instance, reading a large PDF file of a system administration manual can be an arduous task that makes finding answers to specific questions difficult. Instead, you can upload a PDF of the manual into ChatGPT, then submit your specific questions to speed up system design and troubleshooting. Make sure to provide all necessary context about the files to get the best results.  

Going Forward 

While generative AI tools provide value for both personal and business use, there are some best practices to use to ensure you get the best results in a compliant way. Make sure you’re providing clear input and use context. If you don’t get the results you want, ask the question in a different way with more specific parameters like you would in a conversation.  It’s also imperative to avoid sharing confidential organizational information. As always, generated content is meant to be a starting point. Be sure to add your personal touch and assess the results to make it your own. 

ChatGPT and other Generative AI tools can be very beneficial across numerous business functions when used with clear intention and care. If you need support with your Generative AI strategy and plan for your business, the Data Analytics team with Clarkston Consulting can help.  

 

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Contributions by Patrice Freeland 

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Key Takeaways from the 2025 SAP Sapphire Conference https://clarkstonconsulting.com/insights/2025-sap-sapphire-conference/ Fri, 23 May 2025 16:20:14 +0000 https://clarkstonconsulting.com/?p=59408 Earlier this week, our team of SAP experts attended the 2025 SAP Sapphire & ASUG Annual Conference in Orlando, Florida. This year’s conference was once again a fantastic opportunity to hear more about the latest trends, challenges, and opportunities in the SAP landscape. We heard from business leaders across industries about how they’re using SAP […]

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Earlier this week, our team of SAP experts attended the 2025 SAP Sapphire & ASUG Annual Conference in Orlando, Florida. This year’s conference was once again a fantastic opportunity to hear more about the latest trends, challenges, and opportunities in the SAP landscape. We heard from business leaders across industries about how they’re using SAP solutions for better decision-making and keeping up with today’s pace of innovation. 

At this year’s event, SAP announced the integration of over 130 out-of-the-box AI capabilities across its cloud portfolio, including the embedding of Joule and generative AI into the SAP Business Suite. During the keynote, it was shared that SAP’s transformation prep services and tools can cut project cost by 30%, and that 40% of the world’s GDP is now influenced by companies utilizing RISE with SAP.  

SAP also announced it’s shifting the lens of RISE and GROW. Until recently, RISE was offered as a bundle centered around SAP S/4HANA Private Cloud, but now, it’s no longer tied to a single solution. Within the context of the SAP Business Suite, RISE has evolved into a broader framework focused on guiding customers through their transformation journey, serving as the default path for existing on-premise SAP ERP customers moving to SAP Business Suite, which encompasses SAP’s full cloud portfolio, including both public and private cloud ERP.

Likewise, GROW has been repositioned to support new customers, including best practices, accelerated adoption services, a supportive community, and educational resources aimed at helping organizations begin and advance their journey with the SAP Business Suite.

Below, we share some of our key themes and takeaways:

2025 SAP Sapphire Conference

1. Unlocking Enterprise-Wide Value with Artificial Intelligence & Joule 

Artificial Intelligence (AI) was again a hot topic this year, particularly as we heard more about its generative AI copilot, Joule. SAP has embedded Joule across all its major applications, referring to it as being “everywhere, everything, and everyone.” SAP expects every user to become 30% more productive as a result. Joule already has over 1,600 skills built in, and SAP plans to deliver 400 AI use cases by the end of 2025.  

SAP has released new developer tools to enable custom AI use via SAP Business Technology Platform (BTP) and also announced new and evolving AI partnerships (NVIDIA, Google, Perplexity, and Palantir). 

We heard about demonstrated use cases for AI to automate and streamline common tasks across business functions, including report generation, workflow suggestions, queries, and HR interactions. Discussions highlighted a shift from “insight to action” to “reason and act,” encouraging teams to leverage AI to make data-driven decisions and put them into action.

SAP CEO Christian Klein also presented what they call the “flywheel effect,” leveraging data, applications and AI. Deeply integrated business applications within SAP’s Business Suite share a high-quality, context-rich data layer, which combined with AI embedded throughout end-to-end processes, provide momentum to the flywheel to continuously unlock more value.

We also heard more about “prompt optimizer” as part of SAP Business AI’s new AI Foundation to help developers create prompts more efficiently and reduce the need for prompt engineering. 

2. Value-Focused Journey to S/4 with RISE and SAP Toolchain 

There’s been a major mindset shift from major S/4 implementation projects to a more modular S/4 transformation journey, simplifying the path with RISE but highlighting the importance of ROI/lifetime value and change management considerations 

Leveraging SAP’s Toolchain (Signavio, LeanIX, Walk Me, Joule, etc.), organizations can focus on on 1) reduced cost of transformation; 2) faster time to business value and increased business agility; and 3) faster continuous innovation. SAP BTP acts as a connective layer to enable clean core strategies, extensions, AI, and workflows across the suite of business applications, and Signavio is a key enabler to accelerate and de-risk S/4 journeys (discovery, benchmarking, transformation tracking). 

3. AI-Infused Supply Chain Focused on Resilience & Intelligence 

Resiliency and adaptability are key in today’s landscape of supply chain uncertainty – and SAP is keeping up. SAP provided demos on AI-infused supply chain scenarios that can detect disruptions, automate actions, and simulate cost/benefit tradeoffs (i.e., cost, time, and emissions). Language was largely focused on building an adaptable, intelligent supply chain to drive resilience in uncertainty and quickly react to disruptions.

With their announcement of new AI agents for supply chain management, such as Production Supervisor agent, Shopfloor Supervisor agent, and Maintenance Planner agents, organizations can take a proactive approach to monitoring and recommending actions. Additionally, integration with Palantir Ontology and Foundry platforms enables real-time visibility and advanced analytics in manufacturing and ops. With these embedded AI tools, organizations gain greater insights into their predictive analytics across logistics, inventory, and supplier risk. 

4. Holistic Sustainability with SAP’s Green Ledger 

Sustainability continues to be a hot topic for businesses across every industry. SAP has been committed to ways to enable more sustainable, cost- and resource-effective processes, and they talked about a few ways they do this. 

One is through SAP Green Ledger, an app on SAP BTP, that brings carbon tracking into the financial ledger so companies can manage emissions. Another is through its enhanced Sustainability Control Tower, which allows cross-functional ESG tracking with global frameworks. SAP has also pushed “green by default” reporting integrated into ERP and the supply chain.  

As a result, we anticipate seeing more companies shift from manual ESG compliance to incorporating automated sustainability with AI.

Looking Ahead 

The 2025 SAP Sapphire Conference provided another valuable opportunity for us to learn, connect, and grow alongside so many passionate, innovative SAP peers. It also shed light on what we anticipate to see in the SAP space in the near future.  

Businesses will need to move beyond implementation to maximize the value of their SAP investment. This means leveraging the full suite of applications and tools to drive value and quality (think Signavio, LeanIX, Walk Me, Joule, testing automation, etc.) and prioritizing a clean core strategy to more easily take advantage of new features and capabilities that are being quickly released. Understanding where there are pain points and manual processes today will be key areas of focus to further drive ROI. 

They’ll also need to shift to a more modular mindset – instead of infrequent, large-scale implementations, leaders will need to prepare the organization and teams for a higher volume of smaller, value-driven transformations. 

The ability to navigate complex S/4 transformations will start with strategy, process design, change management, and implementation. A common theme we heard from customer success stories was the attention given to the preparation and planning phase ahead of migrating to S/4 – not only laying out the plan for what your organization will do, but how it will do it and defining what success looks like. It’s essential to assess the readiness of your people, leadership, data, and technology to craft a holistic strategy for navigating the transformation. 

Further, partnering with a trusted SAP advisor with deep industry expertise – from life sciences, to retail, to consumer products – will enable businesses to make the most out of their S/4 journey and better align their transformation to overall business goals. If you’re looking for guidance, our team can help. 

To chat more about these key takeaways from the 2025 SAP Sapphire Conference – or other trends and themes shaping the SAP landscape today – reach out to us today.   

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The Digital Plant Maturity Model: Assessing Your Digital Capabilities  https://clarkstonconsulting.com/insights/the-digital-plant-maturity-model/ Fri, 23 May 2025 12:00:41 +0000 https://clarkstonconsulting.com/?p=59327 In the life sciences industry, digitization helps drive operational efficiency, ensures regulatory compliance, accelerates innovation, and more; however, many organizations struggle to assess whether their digital capabilities are keeping pace with quickly evolving industry needs and digital transformation goals. This struggle is, in part, due to limited benchmarking tools available to assess digital maturity within […]

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In the life sciences industry, digitization helps drive operational efficiency, ensures regulatory compliance, accelerates innovation, and more; however, many organizations struggle to assess whether their digital capabilities are keeping pace with quickly evolving industry needs and digital transformation goals. This struggle is, in part, due to limited benchmarking tools available to assess digital maturity within manufacturing organizations. So, here’s what to know about incorporating the BioPhorum Digital Plant Maturity Model.

What is the Digital Plant Maturity Model? 

The Digital Plant Maturity Model (DPMM) is a structured framework developed by BioPhorum to help organizations evaluate and advance their digital capabilities within and across areas in manufacturing, laboratories, quality assurance, supply chain, and information technology (IT). While it focuses on overall digital plant maturity, it can also be tailored to benchmark laboratory informatics, supply chain management, and automation maturity in manufacturing. By benchmarking your operations against these levels, you can identify gaps, set priorities, and align your strategy with broader organizational goals. 

Benefits of Performing a Digital Plant Maturity Model Assessment 

Disconnected systems and manual workflows across manufacturing, quality, laboratory, and supply chain functions lead to inefficiencies and underutilized data. The DPMM emphasizes the importance of integrated and collaborative systems that unlock the full potential of data-driven innovation, compliance, and operational excellence. In addition, as regulatory bodies continue to emphasize data integrity and traceability across the data lifecycle, achieving higher maturity levels ensures that these demands are met effectively, safeguarding compliance and promoting enterprise-wide agility. 

Production and support operations do not function in isolation but consist of deeply interconnected systems. Comprised of the people, process, hardware, software, and data, the entirety of an organization can be characterized as a collection of systems. 

The DPMM provides a framework for evaluating both the maturity of individual operating units and how well they are integrated across the enterprise. By examining these interdependencies, the DPMM ensures that digital transformation efforts are successful, enabling organizations to achieve greater operational efficiency and consistency in meeting business objectives. This dual perspective supports informed decision-making about technology investments and resource allocation, fostering a collaborative approach to enterprise-wide improvement. 

Lastly, the activity of executing a DPMM assessment has the added benefit of generating momentum for change. By providing a clear vision of maturity levels and integration needs, the model acts as a catalyst for action. Current best practices in organizational change management highlight the importance of creating a shared sense of urgency, engaging key stakeholders across all functions, and establishing quick wins to demonstrate progress.  

The DPMM supports these principles by offering measurable milestones, fostering cross-functional collaboration, and aligning transformation goals with organizational priorities. Additionally, its data-driven insights ensure that change efforts are not only strategic but also sustainable, helping organizations build the internal capability to continuously adapt and improve. 

Challenges of Benchmarking with DPMM 

While benchmarking can be the beginning of a transformation, it’s not without its challenges. One challenge lies in the limitations of the DPMM. While the framework is undoubtedly powerful, the rapid pace of technological advancements may require additional interpretation by a knowledgeable expert, particularly when considering more advanced states. 

Additionally, the current version of the assessment is confined to manufacturing, laboratory, quality assurance (QA), supply chain, and IT operations. Adopting a custom approach that includes all functions of the product lifecycle – regulatory affairs and process sciences groups – can deliver even greater benefits by incorporating a more comprehensive view of data flows, compliance requirements, and cross-functional collaboration. By integrating these additional functions, organizations can streamline regulatory approvals and optimize process development, ultimately driving greater efficiency and innovation across the entire product lifecycle   

Another challenge is the need for industry expertise and resource availability. Benchmarking requires significant time and experienced personnel, which may be a hurdle for organizations with limited resources. Identifying experienced professionals to execute the assessment can be difficult, as it demands a unique combination of expertise and perspective. Having personnel with broad knowledge across industries and technologies offers substantial benefits, but such skillsets can be hard to find. (You can read more about how Clarkston’s experts have supported companies to develop a systems capability roadmap here and here). 

The complexity of systems within manufacturing organizations also poses a challenge. Many organizations operate with a combination of legacy systems, bespoke solutions, and modern tools. Mapping these varied systems to a cohesive maturity framework requires considerable effort and expertise.   

Interpreting the DPMM framework to align with a company’s specific operations can be complex. Applying a broad model, like the DPMM, in a way that addresses organizational or departmental goals is both critical and demanding. The ultimate value of the benchmarking output heavily depends on the experience and insight of the assessment team, highlighting the importance of skilled interpretation and customization of the framework.   

Steps to Evaluate the Digital Maturity of Your Operations 

Step 1: Define a Clear Plan 

What types of information will leadership need so they can endorse the assessment?  

Like any project, the project sponsor will need data to secure leadership support so that resources are allocated, roadblocks are cleared, and the effort is considered a strategic priority. Leadership will want to clearly understand the benefits, risks, and the investment required to complete the assessment. The project manager and the project sponsor work together to outline the project’s scope, timeline, key objectives, required resources, and potential risks. The project manager should include time for analyzing the results and preparing the final report. Additionally, they’ll need to forecast the next set of deliverables following completion of the assessment.  

Step 2: Identify Resources 

What resources are required to complete the assessment?  

A cross-functional team is needed to ensure a comprehensive assessment of systems, processes, and data workflows. These participants should include: the project manager, lead facilitator, analysts, subject matter experts (SMEs), technical system owners, business process owners, and data owners for each of the key functional areas across manufacturing, laboratories, quality assurance, IT/automation, and supply chain. 

Step 3: Finalize Leadership Support 

How can we ensure leadership support? 

With this information, you will be prepared to finalize leadership support. Establish regular progress updates with leadership as the assessment progresses via your existing program management office (PMO) channels. Refine the project plan and gather participants and leadership for a kickoff event. 

Step 4: Perform the DPMM Assessment 

What is unique about your operations? What are known problem areas that need more attention during the assessment?  

The assessment itself requires thoughtful design and execution. The lead facilitator, along with business analysts, develop a set of preliminary questions as a thought-provoking exercise for participants that will be used to tailor the DPMM assessment. The participants, guided by the lead facilitator and analysts, will identify the systems currently in use, their levels of integration, the people supporting the systems, and the systems’ effectiveness in supporting the intended use. This data will be used by the lead facilitator to evaluate operations against the five maturity levels, considering whether processes are primarily manual and siloed, or if advanced predictive analytics and integration have been adopted.   

Step 5 – Evaluate and Report 

What are the next steps after the DPMM assessment is completed? 

Once the assessment is complete, the lead facilitator should prepare a detailed report that identifies actionable steps for achieving the next level of maturity. The report should highlight specific areas for improvement for each part of the organization, as well as across enterprise operations. Enterprise opportunities might include implementing a data warehouse, specific system interfaces, or adopting advanced analytics. Finally, the project sponsor and lead facilitator present leadership with the assessment results and proposed actions, including a high-level roadmap for progressing to higher maturity levels. This roadmap should include both short-term wins and long-term strategic initiatives. Ensure that the strategy aligns with broader organizational goals, such as improving supply chain resilience, enhancing quality, or scaling production capacity. 

Assessing Your Operations’ Digital Maturity 

As the life sciences industry continues its digital transformation journey, evaluating your manufacturing operations against BioPhorum’s DPMM is a strategic move. It not only highlights areas for immediate action but also ensures your technology investments align with enterprise-wide goals. 

Have you considered where your manufacturing execution system (MES), laboratory informatics, supply chain, or business intelligence systems stand on the DPMM scale? With a clear roadmap and commitment to progress, your lab can evolve into a powerhouse of efficiency, compliance, and innovation. Clarkston Consulting has the expertise and experience to help organizations meet their digital goals in a pragmatic and compliant way. Contact our team today for guidance.  

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Quality Regulations in the Beauty Industry: Exploring the Impact of MoCra https://clarkstonconsulting.com/insights/quality-regulations-in-the-beauty-industry/ Thu, 22 May 2025 12:00:57 +0000 https://clarkstonconsulting.com/?p=59325 Wellness trends and the “Clean Beauty” movement have been on the rise for several years, especially given the beauty and personal care industry’s shift toward self-care. Much of this buzz over clean beauty is driven by social media influencers who assist in marketing the overwhelming number of cosmetic products available today to a target demographic […]

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Wellness trends and the “Clean Beauty” movement have been on the rise for several years, especially given the beauty and personal care industry’s shift toward self-care. Much of this buzz over clean beauty is driven by social media influencers who assist in marketing the overwhelming number of cosmetic products available today to a target demographic — teenagers. And, there’s certainly no shortage of products being marketed to improve uneven skin tone or get stronger, smoother hair. Walking through beauty and personal care aisles today, whether in a drug store or a beauty store, can be intimidating – aisle upon aisle of carefully crafted products on display, often marketed with claims of being “eco-friendly” or with promises to “fix” imperfections. People with curly hair get drawn to products and tools that make their hair naturally straight. Those who battle acne or rosacea seek solutions that improve skin tone or hide imperfections. While these promises are intriguing, these key questions remain—are these claims truthful? Have these products been appropriately vetted to ensure they are safe for consumer use? What exactly are the quality regulations in the beauty industry? 

The FDA’s Role in Achieving Clean Beauty Standards with MoCRA 

Previously, the Food & Drug Administration (FDA) did not pre-approve cosmetic products before distribution in the U.S, nor did they specify any testing requirements for makeup or skincare brands to abide by. Essentially, cosmetic firms were solely responsible for ensuring adequate compliance, labeling and maintaining their own records to demonstrate the safety of their products. The beauty industry has historically lacked regulation and there was no standard definition for “clean.” 

The Modernization of Cosmetics Regulation Act of 2022 (MoCRA) significantly expands the FDA’s control over cosmetic products since the 1938 Federal Food, Drug, and Cosmetic (FD&C) Act. Under MoCRA, the FDA requires companies to provide a detailed ingredient description for all U.S. cosmetic products, which they further define as a product with a predetermined formula that’s designed for cosmetic purposes. Any variation of that product, like different shades or scents, will also need to be registered individually. Additionally, cosmetic firms must report any serious adverse events to the FDA within 15 business days, as well as provide an accessible contact for customers to report any issues.  

Beauty brands must prepare to adhere with the regulations the FDA plans to establish for Good Manufacturing Practice (GMP) as well. The FDA intends to revise and reissue the Draft Guidance for Industry: Cosmetic Good Manufacturing Practices and in 2024, the FDA issued updated instructions to report to MedWatch: The FDA Safety Information and Adverse Event Reporting Program. If any step in the production process fails to meet the standards set, your product can’t legally be distributed in the U.S. 

MoCRA also mandates these additional provisions for cosmetics manufacturers — 

  • Safety substantiation: Firms must be able to provide clear evidence or records proving the “adequate substantiation” of the products safety. 
  • Labeling requirements: Product labels must now include adverse event reporting contact information and any fragrance allergens. 
  • New enforcement powers and records access for the FDA: The FDA now has the authority to access any information regarding your product or its ingredients, as well as recall the product if they feel it is misbranded. 

Despite increased regulations, the FDA still has not explicitly defined what “clean” means in makeup or skincare. MoCRA may provide new guidelines for clean compliance, but the FDA still cannot restrict the use of toxic chemicals. The challenge for beauty brands now will be maintaining consumer trust through transparent manufacturing and marketing.  

Embracing Transparency— The Industry’s Response to Stricter Regulations 

Consumers today often raise concerns over the safety of products they wear daily, and while regulatory frameworks like MoCRA are pushing for greater accountability, it’s ultimately up to the brand to clarify their definition of clean. In a fragmented industry that is so highly unregulated, compliance and transparency can actually be seen as a source of sustainable competitive advantage.  

When clean beauty brands openly communicate with consumers and disclose ingredient sourcing, they differentiate themselves from less transparent competitors and drive stronger connections with conscious shoppers. In fact, over 70% of shoppers today check the ingredient list before purchasing a product, demonstrating this clear demand for more informed decision-making. Brands that continue to hide behind a false label or fail to provide clear data to back up their claims risk facing consumer backlash and potential legal challenges, as seen with the class-action lawsuit over the Clean at Sephora label. In response, Sephora introduced new seals like Planet Aware to place greater restrictions on harmful ingredients and product sourcing. Similarly, Kim Kardashian’s rebranding of KKW Beauty to SKKN reflects this broader industry shift for cleaner formulas and highlights the benefit of science-backed, sustainable skincare solutions.  

At its core, clean beauty is an industry regulation and consumer trust issue. Integrity in marketing must also be matched with integrity throughout the supply chain, ensuring ingredients are ethically sourced, formulas remain untampered with, and packaging aligns with sustainability goals. In reality, there’s nothing to gain by misleading your consumers. Deceptive marketing and unethical sourcing might offer short-term gains, but as regulations tighten and expectations for clean beauty continue, brands that fail to prioritize transparency will struggle to maintain credibility and relevance in the long run.  

Building a Sustainable Regulatory Framework to Maintain Compliance  

To align with MoCRA regulations and uphold credibility with consumers, companies must take a proactive approach to ensure compliance. Our consultants can help implement the following necessary frameworks to ensure product safety, quality consistency, and regulatory adherence in manufacturing.  

  • Establishing a Centralized Compliance System
    Implement a unified reporting system to track adverse events and ensure a trained response team is in place to address incidents within the 15-day requirement. 
  • Preparing for Regulatory Inspections
    Develop internal policies that align with MoCRA requirements to ensure you are inspection-ready at all times. This includes maintaining clear documentation, updating safety protocols, and conducting routine internal audits to identify compliance gaps before they become liabilities. 
  • Strengthening Supplier and Manufacturer Relationships
    Establish contractual agreements with suppliers to guarantee ethical ingredient sourcing and compliance with MoCRA standards. Also, ensure manufacturers uphold Good Manufacturing Practices (GMP) by maintaining detailed ingredient records and safeguarding product integrity from sourcing to final production. 
  • Ensuring Retail Compliance for Consumer Safety
    Retailers must prioritize sourcing MoCRA-compliant products to prevent consumer dissatisfaction and legal risks. Transparent ingredient sourcing, labeling and marketing will further reinforce consumer trust in your brand. 

By implementing these measures, companies can confidently navigate MoCRA regulations and further position themselves as leaders in the evolving clean beauty industry. 

Looking Ahead for Clean Beauty Regulation 

The introduction of MoCRA marked a transformative shift for the beauty and skincare industry, granting the FDA greater authority to regulate cosmetics and improve safety standards. With new standards set for product safety substantiation, adverse event reporting, and manufacturing processes, MoCRA establishes a robust regulatory framework for beauty brands to follow moving forward.  

Regardless, companies must take the lead in prioritizing transparency—not only in their product formulas and operations but also in how they communicate their offers to consumers. Adhering to both regulatory and consumer expectations is key to sustaining a competitive advantage in today’s saturated clean beauty landscape. 

Reach out to our quality and compliance experts to chat more. 

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Contributions from Bella Gordon  

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The Journey of Designing and Launching a Center of Excellence https://clarkstonconsulting.com/insights/launching-a-center-of-excellence/ Wed, 21 May 2025 12:00:21 +0000 https://clarkstonconsulting.com/?p=59320 In today’s rapidly changing business landscape, organizations are constantly seeking ways to stay ahead of the competition and drive innovation. One approach that has gained prominence is to leverage a Center of Excellence (CoE) to structure cross-functional initiatives. A CoE is a dedicated entity within an organization that focuses on developing expertise, best practices, and […]

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In today’s rapidly changing business landscape, organizations are constantly seeking ways to stay ahead of the competition and drive innovation. One approach that has gained prominence is to leverage a Center of Excellence (CoE) to structure cross-functional initiatives. A CoE is a dedicated entity within an organization that focuses on developing expertise, best practices, and innovation in a specific area or domain. Designing and launching a Center of Excellence (CoE) comes with its own set of challenges, but the benefits it offers can be transformational for the organization. In this blog, we explore these challenges and the remarkable benefits that await those embarking on this journey. 

Challenges in Designing and Launching a Center of Excellence for Change Leaders 

  1. Define the Scope and Focus: One of the initial challenges faced by clients is defining the scope and focus of the CoE. Selecting the right domain or function that aligns with the organization’s strategic goals and offers the most significant potential for improvement is crucial. A company may launch a CoE to support “all change initiatives;” however, without prioritization, it becomes overwhelmed and unable to effectively support any single initiative.  
  2. Establish Resource Allocation: Allocating resources, including budget, talent, and infrastructure, is a critical challenge. The CoE requires skilled professionals, technology tools, and ongoing investments to drive excellence. High-potential change professionals are tapped to work in the CoE, but their managers are reluctant to release them for cross-functional work, creating staffing gaps.  
  3. Ensure Cultural Integration: Integrating the CoE’s expertise into the existing organizational culture can be challenging. Resistance to change and siloed mindsets may hinder the CoE’s ability to collaborate and influence across departments. The CoE provides best practice playbooks, but some business units may prefer “the way we’ve always done it,” ignoring centralized guidance.  
  4. Gather Leadership Buy-In and Support: Gaining leadership buy-in and support is essential for the success of the CoE. Convincing leaders of the long-term benefits and demonstrating a clear return on investment, however, can be a hurdle as after the initial approval, executive sponsors may rarely attend steering committee meetings or advocate for the CoE across the business.  
  5. Focus on Change Management and Adoption: Implementing a CoE necessitates change in processes and work methods. Change management efforts are essential to ensure smooth adoption and minimize resistance. Teams receiving CoE support may perceive it as added work rather than support because they aren’t trained in its tools or methods.  

Benefits of Designing and Launching a Center of Excellence 

There are a number of benefits that come from launching a Center of Excellence, including: 

  1. Enhanced Efficiency and Productivity: The CoE optimizes processes and shares best practices across the organization. This leads to increased efficiency, reduced redundancy, and improved overall productivity.  
  2. Strategic Alignment: By aligning the CoE’s focus with the organization’s strategic goals, clients benefit from targeted efforts that directly impact the bottom line and long-term success.  
  3. Cross-Functional Collaboration: The CoE facilitates cross-functional collaboration by breaking down silos, promoting knowledge sharing, and fostering an environment for innovative thinking. It creates a unified platform for departments to work together towards common objectives.  
  4. Talent Development and Retention: The CoE attracts top talent due to its reputation as a center of expertise. Employees value the opportunity to grow professionally within a knowledge-rich environment, leading to increased retention.  
  5. Informed Decision-Making: The insights generated by the CoE provide data-driven decision-making for leadership. Well-informed decisions are crucial for steering the organization in the right direction.  

Final Thoughts 

At the end of the day, designing and launching a CoE requires overcoming several challenges, but the benefits it offers are unparalleled. From harnessing expertise and fostering innovation to driving cross-functional collaboration and strategic alignment, a CoE can be the catalyst for transformative change within an organization 

By addressing the challenges proactively and leveraging the many benefits, organizations thrive in an increasingly competitive landscape. Discover how Clarkston Consulting’s Strategic Innovation Consulting Services can help your organization design and launch a successful Center of Excellence.   

 

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What You Need to Know Before Upgrading to SAP S/4HANA https://clarkstonconsulting.com/insights/upgrading-to-sap-s-4hana/ Tue, 20 May 2025 12:00:00 +0000 https://clarkstonconsulting.com/?p=57664 As your organization considers upgrading to SAP S/4HANA from SAP ECC, you face a critical decision that will shape your digital transformation journey. This migration represents more than a technical upgrade; it’s a strategic move to position your business for future success. SAP S/4HANA offers significant advantages that can drive productivity and innovation across your […]

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As your organization considers upgrading to SAP S/4HANA from SAP ECC, you face a critical decision that will shape your digital transformation journey. This migration represents more than a technical upgrade; it’s a strategic move to position your business for future success. SAP S/4HANA offers significant advantages that can drive productivity and innovation across your enterprise. However, the transition to S/4HANA also presents challenges that require careful planning and execution.

Below, we explore the key benefits of upgrading to SAP S/4HANA and examine essential considerations to ensure a smooth transition. By understanding the opportunities and potential hurdles, you’ll be better equipped to navigate the upgrade process. 

Understanding SAP S/4HANA 

SAP S/HANA represents a significant leap forward in ERP technology. As the next-generation business suite, it offers a simplified data model and a powerful in-memory database that can process vast amounts of information in real-time.  

Key features and capabilities include: 

  • A user-friendly interface, SAP Fiori, that provides a consistent experience across devices. This intuitive design enhances user productivity and adoption rates, with embedded analytics capabilities that allow for real-time insights to enable faster decision-making processes. 
  • A single, unified platform that consolidates multiple systems and streamlines IT infrastructure. This reduces maintenance costs and improves system stability, while allowing your IT team to focus on innovation rather than maintaining legacy systems. 
  • An in-memory database, dramatically accelerating data processing speeds. This enables businesses to run complex queries and generate reports in seconds rather than hours or days. 

Incentives from SAP     

SAP offers several incentives to encourage organizations to transition from SAP ECC to SAP S/4HANA. These incentives are designed to ease the transition and reduce the overall cost and complexity of the migration process. Here are some key incentives and programs SAP provides: 

  • SAP S/4HANA Movement Program 
  • Financial Incentives and Credits 
  • Conversion Credits 
  • SAP S/4HANA Adoption Starter Engagement 
  • Extended Maintenance and Support 
  • Tools and Accelerators 

Potential Challenges to Consider 

As with any migration, there are significant considerations and challenges that may arise. We break some of these down below: 

Technical Complexity  

Migrating from SAP ECC to S/HANA is a complex undertaking. The transition involves significant changes to data structures, business processes, and system architecture. To determine the scope of the migration, you’ll need to assess your current ECC landscape, including custom code and integrations. This process can be time-consuming and may require specialized expertise to navigate successfully. 

Resource Allocation  

The migration process demands substantial resources, both personnel and budget. You’ll need to allocate dedicated teams to manage the project, potentially diverting them from other business-critical tasks. Staff training on the new S/4HANA system is also essential, which can be costly and time-consuming. Resource planning and management are also crucial to ensure a smooth transition without disrupting ongoing operations. 

Data Migration and Cleansing  

One of the most challenging aspects of migration is data transfer and cleansing. SAP S/4HANA’s simplified data model means your existing ECC data may need significant restructuring and cleaning before migration. This process can be complex, especially for organizations with large volumes of historical data or multiple ECC instances. Data integrity and consistency throughout the migration is critical to avoid disruptions in business processes post-implementation. 

Keys to a Successful Upgrade 

Once you’ve assessed your business needs and considered all potential challenges, take these four steps to ensure a successful upgrade: 

Plan Meticulously 

Upgrading to SAP S/4HANA requires careful planning and execution. Start by thoroughly assessing your current ECC system, identifying customizations, and determining which processes need to be redesigned. From there, develop a comprehensive roadmap that outlines the migration steps and timeline, as well as resource requirements and responsibilities. Remember to engage stakeholders early and often to ensure buy-in, and address concerns proactively. 

Prepare Your Data  

Data cleansing and harmonization are crucial for a smooth migration, so analyze existing data to identify redundancies and eliminate obsolete information. Simultaneously, implement data governance practices to maintain data quality throughout the transition. It may be helpful to use SAP’s data migration tools to streamline the process and further ensure data integrity. 

Invest in Training and Change Management 

The shift to SAP S/4HANA introduces new interfaces and functionalities. As such, organizations must invest in comprehensive training programs for IT teams and end-users to maximize adoption and productivity. Develop a robust change management strategy to address resistance and ensure a smooth cultural transition and communicate the benefits of S/4HANA clearly to all stakeholders to foster enthusiasm and support for the new system. 

Leverage Expert Support  

Finally, consider partnering with experienced SAP consultants or system integrators to guide you through the migration process. Their expertise can help you avoid common pitfalls, optimize your new system configuration, and ensure a successful go-live.  

Upgrading to SAP S/4HANA 

As you consider upgrading to SAP S/4HANA, weigh the substantial benefits against the challenges carefully before making the jump. While the challenges may seem daunting, taking the recommended steps outlined above and working with an experienced SAP partner can make all the difference. We’ve helped clients across industries manage their upgrade from SAP ECC to SAP S/4HANA, and we know what it takes.

Contact our SAP experts today to learn how we can help.

 

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Contributions from Katya Berd and Nadeem Killedar

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The Value of a Retail PMO https://clarkstonconsulting.com/insights/value-of-a-retail-pmo/ Thu, 15 May 2025 12:00:56 +0000 https://clarkstonconsulting.com/?p=59302 The retail industry faces many unique challenges today, juggling a rapidly changing environment, omnichannel integrations, and a need for a customized and seamless customer experience. In an industry that demands innovation and efficiency to achieve long-term success, a Project Management Office can be a key factor in project success. Retailers can look to a PMO […]

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The retail industry faces many unique challenges today, juggling a rapidly changing environment, omnichannel integrations, and a need for a customized and seamless customer experience. In an industry that demands innovation and efficiency to achieve long-term success, a Project Management Office can be a key factor in project success. Retailers can look to a PMO to build standardized project processes and streamline collaboration between project teams. Below, we dive deeper into the value of a retail PMO for any business in today’s retail landscape. 

Purpose of a PMO in Retail Businesses 

A PMO plays a critical role across all retail organizations. It provides structure, governance, and alignment with business goals by implementing project management best practices, ensuring that projects adhere to those practices and aligning with overall strategic goals of the business.  

Key Benefits of a Retail PMO 

What are some of the key benefits of a PMO? Below are some examples that demonstrate the value of a PMO to a retail organization.  

  1. Improved Strategic Alignment
    Retail organizations manage complex projects that span across many platforms as part of their omnichannel strategies. PMOs ensure strategic alignment through implementing standardized methodologies, status reporting, and project roadmapping sessions. 
  2. Increased Flexibility and Visibility
    A source of frustration for retailers is a lack of flexibility and visibility within their organization. A PMO has enterprise-wide visibility to the projects within an organization and can assist with resource management, budgeting, and identifying projects where there may be either synergies or conflicting priorities.
  3. Risk Management
    Retail companies face risks that can cause significant business impacts, such as IT system or supply chain disruptions. Project management offices help organizations to embrace the potential for failure so that teams can work together collaboratively to anticipate and mitigate risks.
  4. Improved Collaboration Across Departments
    A well-structured PMO can optimize resource effectiveness and enhance operational efficiency by increasing stakeholder engagement and proactively planning for project demands through the development of a project roadmap. Our case study on Designing a Retail Organization for Future Growth highlights this, where we developed a roadmap for implementation and a framework for scaling operations.

These are just a few key examples of how a PMO can benefit a retail organization. However, to fully take advantage of these benefits, an organization needs to build and support their PMO with intentionality. When building a properly optimized PMO, business may face challenges along the way. 

Additionally, it’s important to mention how AI will begin to play a prominent role within PMOs, streamlining tasks such as resource allocation, project planning, feedback gathering, and project monitoring. This will  transform the PMO, allowing the project teams to focus on meeting high-level project goals and delivery. (To learn more about how you can use AI within your PMO, read our article Implementing AI into Your PMO.) 

Key Challenges in Implementing a PMO in Retail 

While they can enable greater optimization and efficiency for retailers, PMO implementations can come with many challenges and difficulties. As such, they can require substantial support and planning to achieve success. We outline some of those challenges below: 

  1. Resistance to Change
    Retail organizations may face resistance when implementing new systems and methodologies, particularly when employees are accustomed to a particular project management style. A PMO implementation may require thoughtful change management strategies to overcome resistance to change. 
  2. Balancing Standardization with Agility
    Retailers need to remain agile to adapt to changing customer preferences, market trends, and business technologies. A PMO should strike a balance between standardizing business processes while allowing flexibility for teams to pivot when necessary. To combat rigidity while maintaining a governance structure, organizations can implement agile or hybrid project methodologies, helping them remain adaptable in a constantly changing business environment.
  3. Securing Executive Buy-In
    Securing support from senior leadership can be challenging, especially when the value of a PMO isn’t clearly defined. Demonstrating the ROI of a PMO through KPIs such as improved project delivery times or cost savings is essential for getting buy-in from top executives. The true value of the PMO is seen when properly implemented and optimized for a specific business. PMOs are best optimized when industry best practices are combined with organization-specific priorities.  

Clarkston’s team of experts has hands-on experience navigating these challenges and has implemented successful PMOs across many top retail organizations. Having this experience with past projects, while also staying up to date on future trends, allows our PMO team to deliver the best outcomes for our clients.  

Key Takeaways 

With the increasing challenges faced by the retail industry today, a well-structured PMO is critical for overcoming resistance and being agile in the face of change. PMOs improve efficiency and collaboration across departments, leading to long-term operational success. This is further driven by the PMOs ability to ensure projects are optimized, risk-managed and aligned with strategic goals.  

If you’d like to understand how Clarkston can help your business achieve a strategic and well-optimized PMO, reach out to us today.   

 

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Contributions by Griffin Brown, Sahab Grover, Ralph Webb  

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Establishing a Data Foundation for AI in Laboratories https://clarkstonconsulting.com/insights/data-foundation-for-ai-in-laboratories/ Mon, 12 May 2025 12:00:41 +0000 https://clarkstonconsulting.com/?p=59287 Artificial Intelligence (AI) and Machine Learning (ML) have fully cemented themselves as cornerstone technologies in the building of the future pharmaceutical workspace. Success stories are now readily available, including speeding up research & development (R&D), faster turnaround times and release of drug products, and identifying previously unidentifiable trends. New solutions are coming at a rapid pace, […]

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Artificial Intelligence (AI) and Machine Learning (ML) have fully cemented themselves as cornerstone technologies in the building of the future pharmaceutical workspace. Success stories are now readily available, including speeding up research & development (R&D), faster turnaround times and release of drug products, and identifying previously unidentifiable trends. New solutions are coming at a rapid pace, and the life sciences industry is making significant investments to try to build competitive advantages. As your organization continues to plan for the technological revolution, learn how you can establish a data foundation for AI in laboratories. 

An Increasing Amount of Data 

AI and ML require a large amount of reliable, accurate, and clean data to be successful tools for an organization to have a positive impact on predictability, such as catching results before they fall out of specification. Organizations are trending towards creating more data than in years past, which is why AI and ML have become the leading technologies in life sciences 

It was quickly recognized that all this data has tremendous value, and organizations started digitalizing as much as possible. The problem with this, however, is it often creates a disjointed portfolio of software and databases woven together through processes and manual collation. This results in the difficult problem of extracting true value from the large amount of data collected due to a potential lack of accuracy and reliability.   

Having the Right Resources in Place 

To start a foundation for AI and ML, it’s crucial to have an established team focused on the data strategy and empowering them with the resources needed to implement this strategy will be vital. This team should span the organization and be representative with specializations in the enterprise-level tools you will use to collate and assess your data.  

Most organizations have some form of this, however, here are some additional considerations:  

  • Does my organization have an empowered data strategy team?  
  • Is my organization’s data strategy clear in how it applies to my responsibilities?  
  • Does my methodology/process include clear actions and responsibilities for the data strategy team’s involvement?  
  • Is there a clear roadmap for how I will get my systems and data aligned?  

Data Strategy 

Data in the laboratory is often highly segmented because of the numerous specialized tools and software required to meet a wide variety of needs. Consistency and streamlined data are key in turning that segmented data into actionable knowledge that AI and ML can use to provide accurate returns. Achieving this involves input from your data strategy team in new implementations and larger enhancement work.  

Ensuring prioritization of these items in your methodology can create immediate new opportunities as well as future-proof your architecture and systems. Already having prioritized enterprise systems and process harmonization will provide a huge advantage, as their data structures are likely dependable. Organizations that are not yet at that stage should carefully define data standards and enforcement of them.  

It’s essential to have all data follow the same data strategy, which may result in the need to repair existing data where strategies may not be aligned. It is recommended to begin evaluating already existing data hubs in your labs, such as a Laboratory Information Management System (LIMS) and Quality Management System (QMS). These will often make the largest impact and open new opportunities for you to leverage the data within. Aligning your existing data with your new data strategy will ensure that it can be leveraged in perpetuity.   

Leveraging the Data 

Once data is reliable, consistent, clean, and accurate, it’s then time to compile the data in useful and meaningful ways. One way to do so is with the increased ability to analyze data within your individual larger data hubs, such as a LIMS. This results in existing tools and metrics becoming more effective, accurate, and actionable.  

Another way is by leveraging the wider view of data lakes, which have been and still are the primary tool for accomplishing this, particularly in the often-disjointed laboratory space. Understanding your reporting and AI use cases will help you select and prioritize data sets that need to be transferred to your data lake. Data lakes can be extremely powerful with the right tools, providing you insights across previously disjointed areas.   

Looking Ahead 

As AI and ML become more prominent in the laboratory, organizations must remember that data is the foundation for these technologies. Predictive and generative outputs are only as good as the data being evaluated. Clarkston can help establish a data strategy and fundamentals to ensure your AI and ML data is actionable and valuable. Contact our Lab Informatics experts today to learn more. 

 

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Navigating Supply Chain Uncertainty: Recapping the 2025 Gartner Supply Chain Symposium/Xpo™ https://clarkstonconsulting.com/insights/navigating-supply-chain-uncertainty/ Fri, 09 May 2025 12:30:57 +0000 https://clarkstonconsulting.com/?p=59284 Clarkston’s Wesley Ange and Sebastian Valencia attended the Gartner Supply Chain Symposium/Xpo™ earlier this week, joining industry peers, chief supply chain officers (CSCOs), and supply chain executives to discuss navigating supply chain uncertainty and driving future readiness. At this year’s expo, topics revolved heavily around volatility in today’s supply chain and how to prepare for (and […]

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Clarkston’s Wesley Ange and Sebastian Valencia attended the Gartner Supply Chain Symposium/Xpo™ earlier this week, joining industry peers, chief supply chain officers (CSCOs), and supply chain executives to discuss navigating supply chain uncertainty and driving future readiness. At this year’s expo, topics revolved heavily around volatility in today’s supply chain and how to prepare for (and navigate) disruptions. It was shared that there’s an average of 17 unfamiliar high-impact risk events each year, some costing leaders more than $1M due to those disruptions. How can supply chain leaders ensure future readiness with a measured and strategic response? How does that affect decision-making for supply chain leaders? Our team heard from industry peers and leaders about how to keep supply chain strategies on track despite everything going on in today’s volatile landscape. Below, we share our thoughts on navigating supply chain uncertainty and dive into other key themes from this year’s Gartner Supply Chain Symposium/Xpo™. 

3 Key Themes for Navigating Supply Chain Uncertainty 

1. Optionality & Scenario Planning: Traditional Forecasting Isn’t Enough 

The pace of disruption in today’s economy is relentless. With an average of 2.5 major shocks per month shaking U.S. markets, rigid supply chain strategies are quickly becoming liabilities. CEOs no longer want fixed solutions; they expect CSCOs to present multiple, viable paths forward that align with short- and long-term business realities. Traditional forecasting based on historical data is no longer sufficient; now, the new standard is modeling extremes and identifying persistent truths across scenarios.  

Businesses can gain a competitive edge through advanced visibility and scenario planning. According to Gartner, 88% of supply chain leaders agree that operational scenario planning is valuable, but only 19% are actually doing it. CSCOs and their teams must shift their approach from reactive problem-solving to proactive scenario planning, “bringing the future to the present” by mapping multiple potential futures, not just optimizing one, and finding the supply chain that works the best across various scenarios. One session used the term “extensive experimenting” to describe this. 

Clarkston’s “Bring the Future to the Present” (BF2P) methodology supports scenario-based strategies, helping design plausible features and anchor strategies in common threads. Rather than chasing false certainty, this approach recognizes that businesses must prepare for a spectrum of possible futures. By examining extremes and pinpointing key elements that remain true across all scenarios, organizations can develop core capabilities that ensure long-term viability.  

2. Building Resilience Through Agility and Flexibility 

Another key topic was building resilience. Resilient supply chains aren’t static. Rather, they adapt through people, flexible processes, and modular systems that enable quick pivots. With resilience being the #1 CSCO priority for the next two years (Gartner), supply chains have to shift from rigid models to adaptable ones. 

During Ken Chadwick’s keynote, he mentioned that people are the key to enabling that agility and flexibility – remember, assets can’t improvise, but people can. Bring people along for the journey was a theme in almost every session. Projects rolling out new technology must have an organizational change management approach. The way of operating is changing, and without a strategy, change will be met with resistance. On top of an OCM strategy, the continued success will be dependent on sustaining the culture change and a well-thought through learning management approach, which also must include the how and the why for all employees. 

CSCOs who thrive will be those who plan effectively, have the right people along for the journey, and adapt a flexible, forward-thinking mindset – not those who just “guess right.” 

3. Technology Enablement and Data 

Supply chain innovation has a high impact on business outcomes — enhancing supply chain resilience, cost reduction, service level, productivity, and revenue growth.  But innovation isn’t about adopting tech for tech’s sake. And it is not just about the tech. In many cases, focusing on improved business processes is the right place to begin, as this is often a faster way to positively impact the business. Updated business processes will also support your search for enabling technology. 

The other consideration that comes with technology is data cleanliness and accuracy. Every technology project shared at the conference emphasized the importance of good data to enable better decision-making. Without accurate data, your company is set up to make the same (or possibly worse) decisions faster, instead of gaining new insights. It doesn’t stop with the project; this isn’t a one-time effort. Maintaining clean and accurate data must become part of business as usual. 

With good process and accurate data, CSCOs are prepared to invest in targeted, high-impact use cases that enable greater agility and decision-making. 

Final Thoughts 

Today’s marketplace volatility and uncertainty mean that supply chain leaders must take a flexible and adaptable approach to supply chain strategy. If you’re looking for a partner to help you on this journey – or if you’re interested in chatting about any of the above themes from this year’s Gartner Symposium/Xpo, connect with us today.   

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Benefits of Supply Chain as a Service in Retail https://clarkstonconsulting.com/insights/benefits-of-supply-chain-as-a-service/ Fri, 09 May 2025 12:00:27 +0000 https://clarkstonconsulting.com/?p=53115 Retail is a vital industry that sustains communities around the world, and retail supply chain management is the heartbeat of this industry. For retailers, time is money, making supply chain management a priority for any company. Recently, we’ve begun to see supply chain as a service (SCaas) emerge as the next big trend for effective […]

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Retail is a vital industry that sustains communities around the world, and retail supply chain management is the heartbeat of this industry. For retailers, time is money, making supply chain management a priority for any company. Recently, we’ve begun to see supply chain as a service (SCaas) emerge as the next big trend for effective and efficient supply chain management within the retail industry. In this piece, we’ll dive into the benefits of supply chain as a service in retail and tips to assess whether your business should consider pursuing this avenue for operations. 

What is Supply Chain as a Service?  

Before we get too far into the logistics, let’s level set and define what we mean by supply chain as a service. SCaaS allows companies to generate another revenue stream on existing resources, ranging from warehouse space utilization and shipping, to supply chain management planning capabilities. In this piece, we’re referring to SCaaS as traditional outsourcing areas, such as 3PL services (i.e., warehouse and transportation and contract manufacturing services), as well as management functions like planning and purchasing. This also includes the systems and IT infrastructure that support these functions. Any or all of these can be provided under the umbrella of SCaaS.  

Some industry experts agree that SCaaS refers to outsourcing several or all supply chain management functions to a service provider. Others, like industry-leading experts at Gartner, modify that definition to exclude physical, operational activities provided by service providers such as 3PLs, distributors, and external manufacturing providers. For alignment, we will explore SCaaS with the perspective that it includes physical and operational activities. So, what does this look like within the retail industry? 

Benefits of Supply Chain as a Service in Retail  

Offering parts of an existing supply chain functionality as a service is becoming an emerging trend in the retail space. Over the next several years, SCaaS in North America is expected to grow at a CAGR of 7.5% to $7.85 billion. The effects of the pandemic have undoubtedly encouraged businesses to be creative in utilizing their assets and maintaining profit opportunities. 

There are two major categories of Supply Chain as a Service: assets, and business processes. Assets refer to the parts of your existing supply chain process, such as warehouses, trucks, production, delivery, etc. The business processes aspect involves the utilization of individuals as well as technology to oversee elements of the supply chain process for clients

Companies that have been pioneers in adopting SCaaS are Amazon, Gap, and American Eagle Outfitters. These companies have capitalized on the chance to innovate new solutions to mitigate profit loss due to the unpredictability and supply shortages during the pandemic. Amazon does this well by allowing third-party retailers to utilize its warehouses and shipping services to manage their flow of goods.Gap and American Eagle Outfitters have followed Amazon’s strategy by launching their logistics and delivery services, allowing retailers to focus on other value-add areas of their business. 

Is SCaaS Right for You? 

Although investing in your existing supply chain to expand services to third-party retailers can benefit your overall profit margin, how do you assess the market to ensure this is a viable option for your business?

  1. Choose a supply chain focus area: First and foremost, retailers must decide which areas of the supply chain they want to focus on. Picking a focus area where you already possess expertise will help minimize the learning curve. Consider your core supply chain competencies – should you focus on demand forecasting, manufacturing, inventory optimization, warehouse management, etc.? A lack of focus on core areas of strength can lead to underperforming as a SCaaS provider. The supply chain comprises of complex and distinct processes, so ensuring a level of expertise in various focus areas can be challenging. As such, evaluating your capabilities is a critical initial step. 
  2. Know your competitive landscape: It’s also critical to assess your competitors’ strengths and weaknesses. Once you’ve accurately identified what the market has to offer and what is most needed, compare your capabilities with other SCaaS providers within your market. This will ensure your offerings are in alignment with the market expectations and allows you to gauge your strategy appropriately.
  3. Define your tech platform: Finally, you’ll also need to choose an ideal technology architecture that will allow you to scale and attain profitable growth. A cloud-based infrastructure is perfect to accomplish this because it offers flexibility and scalability for digital services.  

Exploring your SCaaS Opportunities 

For retail clients who are looking to relinquish parts of their supply chain to a third-party provider, there are some concerns, such as maintaining data privacy or perhaps losing what they perceive to be a competitive advantage – controlling their end-to-end processes. However, there are also a number of benefits in this space. Retail clients seeking out SCaaS providers for their supply chain needs allow them to focus on other aspects of their growing business without the complexity and overhead of building their own supply chain network.  

If you want to explore your SCaaS opportunities in retail, our supply chain experts can advise you on the best approach and solution to meet your unique business needs. 

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5 Considerations for Selecting a LIMS Vendor https://clarkstonconsulting.com/insights/selecting-a-lims-vendor/ Wed, 07 May 2025 12:00:41 +0000 https://clarkstonconsulting.com/?p=59263 Selecting the right Laboratory Information Management System (LIMS) vendor for your organization can be an intimidating task. It can seem overwhelming to effectively narrow it down from a full market scan to a few top choices in vendors to ensure that the needs of the organization are met; however, it can be less daunting when […]

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Selecting the right Laboratory Information Management System (LIMS) vendor for your organization can be an intimidating task. It can seem overwhelming to effectively narrow it down from a full market scan to a few top choices in vendors to ensure that the needs of the organization are met; however, it can be less daunting when your business needs are carefully considered and adherence to a strategic vendor selection process is maintained. In a previous article, we describe six key considerations for a LIMS vendor selection; in this piece we build on some of those points to bring you the latest guidance for selecting a LIMS vendor. 

Selecting a LIMS Vendor: 5 Considerations  

1. Industry 

Start by narrowing down the list of possible vendors based on what your lab does from a high level. Starting with industry requirements could greatly reduce the number of viable LIMS vendors for your organization, thus easing the decision-making process. Some LIMS providers have a core industry that they consider their specialty with solutions likely developed with that industry in mind, while others may specialize across multiple industries. In either scenario, it’s important to consider the advantages of working with a LIMS provider that is knowledgeable about the industry you serve and has the best tools for your laboratory operations. This can also help clarify the support the vendor may be able to offer for any customized workflows.  

2. Scalability 

Scalability has always been a key consideration for LIMS vendor selection and is becoming increasingly important as laboratories are shifting to Lab 4.0, or the Lab of The Future, landscape. When considering scalability needs for your organization, it’s important to be clear in the expectations of your laboratory operations to future-proof your solution. Some changes to workflows are inevitable, possibly due to regulatory changes, new research focuses, or the removal or addition of products tested in the lab. These changes may impact your LIMS requirements, and it’s vital to have a system that can adapt to these changes.  

Some things to consider when thinking of scalability: 

  • Will my organization have multiple sites for a global system? 
  • Will my organization be adding new functionality/automation/robotics to the laboratories? 
  • Will my laboratory benefit from the use of Artificial Intelligence (AI) or Business Intelligence (BI), and should it be considered? 
  • What are my architecture landscape goals (i.e. Cloud Hosted, On-Premises), and who will support the architecture? 

Increasing the capacity of your LIMS may require updates, upgrades, customization, or additional licensing. Different LIMS providers will have different options and different costs, so it’s helpful to narrow down the list based on your needs and goals. 

3. Interoperability 

In any technology implementation project, it’s important to consider how well the proposed solution will fit into your existing and future infrastructure. Your laboratory already has instruments and systems in use to support testing of samples, and it’s important to consider the ability to interface these tools with a LIMS. At the same time, you may also have plans to add additional instrumentation or external systems that it would be beneficial to have interfaced with LIMS.  Additionally, you may have Extract, Transform, and Load tools as well as data warehousing capabilities that can be leveraged during the data migration process. So, it will be important to ensure that LIMS providers you are considering are compatible with these instruments, systems, and tools.  

4. Leveraging Out-of-Box Functionality 

Many LIMS providers offer all-encompassing solutions, such as Software as a Service (SaaS), or flexible packages that are easy to configure. While these options can be advantageous depending on needs, it’s recommended to focus on finding a solution that works best with minimal changes to the out-of-the-box (OOB) solution. Identifying a solution with high OOB functionality will prevent the need for extensive customization and avoid high-level solutions with unnecessary features that may incur additional costs. 

5. Vendor Roadmaps 

Selecting a LIMS is a long-term commitment with a vendor, so it’s imperative to understand the roadmap of the vendor and future capabilities to ensure their investments in their product will be aligned with your laboratory goals and needs. For example, if data analytics and AI are focuses within your lab, it may be beneficial to consider this a priority for your LIMS solution and focus on vendors who are already established in AI or are currently making it a focus of their future releases. Understanding vendor roadmaps will help you eliminate vendor options that aren’t aligned with the growth you see for your laboratory and prioritize those with shared goals. 

Selecting the Right LIMS Vendor for Your Organization 

An overarching theme within LIMS vendor selection is the importance of being clear with intentions and prioritizing accordingly. There are a handful of ways to effectively narrow down a list of potential LIMS providers including based on industry, scalability, compatibility with existing systems, out-of-the-box functionality, and the future of the vendor. Keeping these things in mind will help you make an informed decision about the right LIMS vendor for your organization 

If you’re interested in learning more about effective LIMS vendor selection, our team of experienced LIMS consultants at Clarkston can help. 

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Contributions by Rick Curtis and Brad Creamer

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Decision-Making During Times of Uncertainty: What Leaders Need to Know https://clarkstonconsulting.com/insights/decision-making-during-times-of-uncertainty/ Mon, 05 May 2025 12:00:11 +0000 https://clarkstonconsulting.com/?p=59234 The environment today harkens back to COVID, when consumers and businesses were dealing with a tremendous amount of uncertainty. Today it is not a pandemic, but rather ever-changing tariffs, declining consumer sentiment, inflationary pressures mounting, and economic growth forecasts being revised downwards. Leaders in today’s world are tasked with acting amid tremendous amounts of risk […]

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The environment today harkens back to COVID, when consumers and businesses were dealing with a tremendous amount of uncertainty. Today it is not a pandemic, but rather ever-changing tariffs, declining consumer sentiment, inflationary pressures mounting, and economic growth forecasts being revised downwards. Leaders in today’s world are tasked with acting amid tremendous amounts of risk and uncertainty, which can make decision-making and strategic planning increasingly difficult. In times of unpredictability, studies show that leaders either make short-term based decisions, leaving billions of dollars of untapped potential, or they look to past experiences to inform the present. But effective judgement is hard to come by when our present circumstances don’t resemble anything we’ve experienced in the past. Staying focused on core values and communication both internally and externally while also using the future to inform the present will help move businesses forward. Below, we highlight a few fundamentals to inform decision-making in times of uncertainty.

A Focus on the Fundamentals

With a commitment to volume growth, companies have a renewed focus on innovation – not just in product but in experiences that drive consumer engagement and loyalty. Look for opportunities in chaos, as constraints can often drive innovation. Reframe issues as possibilities and encourage nimbleness and creativity within your team. Empower leaders with flexible solutions. Being able to pivot will be paramount, as change is a certainty right now, and communication and trust in your teams are key.

Do not lose the focus you may have generated on key initiatives such as Revenue Growth Management (RGM). Balancing the right mix of pricing complexity vs. simplification, companies are deploying a more integrated RGM strategy, avoiding siloed solutions and driving cross-functional collaboration.  Along with RGM initiatives, leaning into core competencies such as Category Management is key during these times. Making sure the right products are on shelf to meet consumer needs will build loyalty as consumers rely on trusted brands during difficult times.

Global supply chains are being rattled with uncertainty, so companies are focusing on efficiency, agility, and operational excellence as part of their supply chain transformationsNew tariffs have resulted in sudden cost increases for manufacturers and consumers, which makes forecasting challenging. Similar to COVID, manufacturers need to shift their sourcing strategies. By diversifying their supplier base, manufacturers are better able to mitigate risk.  Agriculture and Technology have been hit especially hard, and this has highlighted the need to adjust single source supply from tariff-affected countries wherever possible.

A Focus on the Future

In times of uncertainty, it’s critical for leaders to have a future-based strategy to foster organizational growth and transformation.

Clarkston has developed a scenario planning methodology that assists organizations, using strategic foresight as a key factor to future achievements. By not solely relying on past experiences, Clarkston holistically integrates forward thinking and strategic excellence for sustainable growth.

With today’s unprecedented change, it is critical for leaders to pivot to a future-based strategy with a laser focus on core values and connection with consumers to help drive growth. Reach out to us today to chat more.

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