How Value is defined in Modern Supply Chains

When Szabolcs Balázs (Szabi) discusses supply chain value, he doesn’t begin with cost savings. He starts with something deeper: the very definition of value, which he says is shifting. “Many organizations still associate value with the traditional financial indicators such as fewer kilometers per ton, more efficient routes, shorter planning time or fewer hours lost in congestion. Those metrics still matter because they’re directly measurable. But they represent only one dimension.”

Over the last few years, he has seen a clear transition. Value is becoming multidimensional, integrating not only performance outcomes but also experience for both customers and employees. “We increasingly hear companies ask whether their people feel supported, whether the operation feels predictable instead of reactive, and whether customers consistently experience reliability. Ten years ago these questions rarely appeared in logistics discussions. Today, they are essential.”

ORTEC Performance Audits Optimize Your Solution

Executives should ask one question more often: what are our targets for the next three years, and who can help us achieve them?

Szabolcs Balázs, SVP Retail and Wholesale Europe at ORTEC

In retail, three priorities keep surfacing. Not because they are buzzwords, but because they shape the quality and longevity of any partnership: Optimization Capabilities, Support and Services Quality and Total Cost of Ownership (TCO).

Together, they form what Szabi sees as the structural foundation of lasting value. “Optimization delivers the measurable improvements. Strong support ensures that those improvements remain stable as the business evolves. And TCO prevents short-term gains from turning into long-term surprises. These three together determine how resilient value ultimately becomes.”

This moves the focus away from dashboards and technical features and toward the practical realities of running a supply chain: the decisions people make, the processes they follow and the routines that help improvements last.

From Business Case to Reality: Turning Analysis into Financial Impact

Even with a clear definition, value only becomes real when an organization turns intent into measurable performance. Many companies can articulate what value should look like, but far fewer manage to deliver it consistently. “We’re good at identifying value. Everyone can build a business case. The hard part is turning KPI movement into actual financial impact and maintaining that impact over time.”

According to Szabi, this gap doesn’t exist because people lack expertise or motivation. It exists because the translation from improvement to financial value requires discipline that often fades once the initial project is finished.

His approach relies on a simple, structured sequence that keeps the discipline intact. It starts with a concrete project, then links that project to specific KPIs. Those KPIs are monitored closely as performance shifts, and only then is that movement translated into financial outcomes, the point at which potential value becomes measurable value.

Zt_GKxoQrfVKl4Z6

Szabolcs Balázs, SVP Retail and Wholesale Europe at ORTEC

"Value erosion is invisible. It happens slowly, quietly, inside daily decisions. Great companies track their KPIs relentlessly and protect value like an asset."

But this translation depends on something many organizations still struggle with: real transparency in cost structures. “This is where partnership truly begins. To quantify value, we need real numbers, shared at the right time, not six months later. If something drifts, you want to spot it immediately and correct it right away, not when the year is already gone.”

Real-time data enables rapid course correction. Small deviations become visible early, long before they turn into structural losses. And this, according to Szabi, is exactly where strong organizations distinguish themselves. “Good companies stay focused during implementation. Great companies maintain that same focus long after go-live. They keep reviewing, keep translating, keep adjusting. That discipline is what protects value over time.”

Strategic Levers to Enhance Supply Chain Value

The companies that outperform the market treat value as a leadership discipline rather than a project outcome. Their approach reveals several patterns:

  • Value remains traceable from strategy to daily execution. Leaders insist on a clean line between strategic objectives and operational KPIs.
  • Maturity shapes ROI. Organizations select solutions that fit their readiness, protecting investments from misalignment.
  • Transparency is non-negotiable. Real cost insight enables accurate business cases and immediate corrective action.
  • Continuous improvement outperforms big transformations. Small monthly adjustments often drive more sustainable gains than large one-off programs.
  • AI accelerates time-to-value. Not as hype, but as a tool that automates monitoring, speeds up scenario evaluation and shortens implementation cycles.

Value becomes durable only when it is governed with the same rigor as cost, revenue and risk.

Preventing Supply Chain Value Erosion

Value erosion is one of the most underappreciated dynamics in supply chains. It is rarely dramatic. Instead, it unfolds gradually through small deviations, quiet workarounds and shifting business realities. “Once the initial project ends, the excitement naturally settles,” says Szabi. “New challenges emerge, the business continues to evolve, and teams begin to improvise to keep up. None of this is malicious; it’s simply what happens when operations are under pressure.”

This is why ORTEC performs yearly operational reviews for its clients, framed not as audits but as forward-looking evaluations. “The goal is not to check whether someone did something wrong. It’s to understand where value is weakening, where processes no longer match reality, and where teams need support. These reviews give clients a roadmap, not a report card.”

Supply Chain Planning GenAI

Implementations used to take years. With AI and cloud-native planning, we’re talking months. The speed of impact is changing.

Szabolcs Balázs, SVP Retail and Wholesale Europe at ORTEC

When needed, organizations ask ORTEC’s customer success teams to own parts of the process. “Some clients tell us: help keep these KPIs at the agreed level. And then it becomes a shared responsibility. This removes friction and keeps value stable, month after month.”

But the most powerful mechanism for preventing erosion is far simpler: continuous improvement. “You don’t need massive new implementations. It’s the small, steady adjustments that protect and grow value. Small tweaks compound fast when KPIs are monitored closely.”

What Operational Value Looks Like

Where executives think in targets and board commitments, planners and dispatch teams recognize value in different terms:

  • A day with fewer exceptions and surprises.
  • KPIs that match real conditions rather than idealized versions.
  • Tools that reduce manual corrections instead of adding work.
  • Continuous small improvements that make tomorrow’s shift easier.
  • Support teams that respond quickly during disruptions or seasonal peaks.

Operational value is delivered by a planning environment that is stable, predictable and supported, not one that relies on heroics to function.

Logistics Maturity: The Compass for Success

As ORTEC renewed its packaging strategy (Essential, Premium and Enterprise), logistics maturity became central. This reflects a truth that many organizations underestimate, says Szabi: not all companies should start at the same level. “You can be a global enterprise with low logistics maturity, and then the essential package is the best fit. You can be a small operator with excellent processes and data discipline. Then the enterprise-level capabilities make sense. Size has nothing to do with readiness.”

To explain, Szabi uses a simple analogy: “It’s like running a marathon. You don’t begin with 42 kilometers; you start with shorter distances and build endurance over time. Logistics maturity works the same way.” This maturity-based model helps clients avoid the frustration of deploying high-end capabilities in environments not yet equipped to benefit from them, and it protects ROI.

Just as importantly, the packages combine software and consulting, which Szabi sees as essential. “We’ve always been both. We leave tools behind, but the knowledge we bring is just as important. Some components are services-only. It’s all about delivering value, not about selling features.”

Beyond Benchmarks: Why Supply Chain Maturity Isn't Linear

Although Szabi now focuses primarily on retail, he avoids labels that rank industries from mature to immature. “There are great companies everywhere, and companies that are just starting their journey. What matters is where they invest: in processes, in data, in customer experience, in procurement. But everyone understands one thing: logistics is the backbone.  If you invest in it, you’re predictable, on time and delivering the right goods to the right people at the right moment.” That’s not just good marketing, it also ties maturity directly to customer experience and long-term value creation.

The Future: AI as the Ultimate Value Accelerator

Artificial Intelligence (AI) is not simply an add-on; it is getting woven into the fabric of how value is measured and protected. “Our company was built on operations research,” says Szabi. “That already is a form of AI. Generative AI takes it further.”

In practice, this means AI assistants being embedded into the control tower and planning environment. “You don’t have to search for which trucks are late or where the exceptions are. You’ll simply ask the assistant. And you won’t track KPI movements by building complex dashboards; the assistant will surface them automatically. Monitoring becomes effortless.”

This will shorten the time between insight and corrective action dramatically. “Correcting an issue two weeks earlier can protect months of value. AI gives us that speed.” And this speed, he notes, will define the next competitive frontier in supply chains.

Szabolcs Balázs, SVP Retail and Wholesale Europe at ORTEC
"The best organizations turn logistics into a competitive edge: predictable, efficient and deeply aligned with customer expectations."

At the end of our talk, Szabi reminds us of the challenge he posed at the start of the conversation: “Make sure you know where the value in your supply chain is coming from and where it is leaking. Knowing that gives you a clear advantage.”

In a world where logistics defines brand experience, where continuous improvement compounds and where AI accelerates everything, the leaders who win will be those who treat value not as an outcome but as a discipline. Their edge won’t come from technology alone, but from how consistently they protect and grow the value it creates.

Matching Capabilities to Readiness

ORTEC aligns its optimization and planning capabilities to an organization’s operational and data maturity. Three adoption tiers ensure that companies deploy the right level of capability at the right moment.

  • Essential: Core optimization and operational stability.
  • Premium: Deeper efficiencies, better forecasting, stronger cross-functional alignment.
  • Enterprise: Full-scale optimization across regions with predictive analytics and continuous improvement frameworks.

This model ensures:

  • Capability fit to maturity, not to company size.
  • Predictable value realization through guided adoption.
  • A blend of tools and expertise that reinforces long-term performance.

About Szabolcs Balázs - SVP Retail and Wholesale Europe at ORTEC

Szabolcs Balázs serves as the SVP Retail and Wholesale Europe at ORTEC, bringing over 18 years of experience within the company to his current role. Throughout his career, he has held various leadership positions at ORTEC, building deep expertise across supply chain planning, optimization, and customer success. His academic background includes both a Bachelor's and a Master's degree in Economics from the Bucharest University of Economic Studies. In his current role, Szabolcs works closely with executive teams to align strategy, operations, and technology to deliver measurable and sustainable value.

Connect with Szabolcs
Connect with Szabolcs Balázs

Smart Decisions Start with the Right Insights

Stay informed with expert insights, industry trends, and practical strategies that help you stay ahead. Subscribe now to get the latest updates straight to your inbox.