Have global disruptions, like COVID-19, continued to shape our supply chains’ future? Being in the eye of the storm has impulsed innovative solutions to respond with agility and the pandemic has tested each link’s vulnerabilities, especially for essential operations such as health care.
As rapid decisions are made, resiliency is valued to manage short-term crises. What insight can we have on the supply chain crises for future COVID spikes and other global obstacles?
- 94% of Fortune 1000 companies are seeing supply chain disruptions from COVID-19.
- 75% of companies have had negative or strongly negative impacts on their businesses.
- 55% of companies plan to downgrade their growth outlooks (or have already done so).
Considering the pandemic changes that have shaped consumer behavior, supply chain response, and route to new markets the need for agility has accelerated by end-to-end visibility, optimization, fast escalation, and monitoring. As a result, costs and losses can be mitigated with a flexible plan of action. Does your supply chain have the IT infrastructure to host and process historical data? Breaking down the complexity of an unforeseen vulnerability starts with having all the statistical input available to decide on the best course of action. Why is this so crucial? Disruptions are costly for businesses and sustainability. Being able to rely on a tech-led capability while providing transparency to your supply chain response.
The course to a Disruption Response Plan
Transforming disruptions into a competitive advantage or even an opportunity can be challenging, but it’s possible having in mind the following:
- Setting in motion the initial response set of actions and policies
- Reevaluating risks according to a new scenario of disruption
- Analyze potential outcomes to provide further insight
- Tailor your internal networks to guarantee efficient flow
Unprecedented supply chain disruption has given us all a lesson and a chance to rise up to the occasion to understand and see the impact of supply chain planning in a new light:
- demand drops and surges by segment in a short period of time
- supply shortages and collateral damage
- inventory placement challenges and solutions
- reduced productivity consequences
Planners went beyond steady-state models to make decisions with real-time information while allowing to define supply chain priorities that required immediate action. In summary, your data and IT infrastructure will leverage agile decision-making. Constant evaluation of your operation with KPI metrics will help you respond and having simulations or pilots to project. Investing in your workforce will allow productive and fruitful results.
Need a strategic logistics partner to create a flexible and responsive supply chain?