Future-Proof the Supply Chain: Lessons Learned from COVID-19
Facebook blurb: In addition to the very human impact of this pandemic, global supply chains have suffered greatly. Companies around the world will need to adapt to survive. Read our blog to learn some ways companies can not only strengthen their current supply chains, but optimize them for increased resiliency and sustainability in the future.
In addition to the very human impact of this pandemic, global supply chains have suffered greatly. Scarcity of materials, reduced logistical services, and significantly reduced labor availability have all put incredible pressure on supply chain leaders to readdress their strategies. Countless organizations will need to adapt as their supply chains continue to be disrupted.
This pandemic, however, also provides companies with a valuable opportunity to reassess the strength of their supply chains and discover ways to reinforce them. If they do so, they’ll likely find the road to recovery – and their resilience in the future – much improved. Read on for three strategies supply chain leaders can utilize to strengthen their supply chains.
Increase Transparency of Material Planning
The crisis has emphasized the importance of better visibility for the capacity and availability of materials from a company’s various suppliers. Missing or intentionally obscured information about materials from suppliers can and has proven to be disastrous for many companies’ output, especially during these extraordinary times. Everything from delivery performance data, capacity data, and control tower solutions should be employed to better assess the risk profile for their products and services.
Refine Planning for Demand
When historical data fails to model customer demand – which is to be expected when something virtually unprecedented like the pandemic occurs – the ability to analyze demand becomes more critical than ever. COVID-19 has been highly variable in how it affects different countries, regions, and even states, necessitating a more precise and local analysis of demand.
Optimize Logistics & Supply Planning
While it may sound self-evident, organizations should aggressively optimize their supply chain networks moving forward. How can extraneous network elements be eliminated? How can transportation and logistical service providers be optimized? How can logistics lanes be minimized? While every organization is different, discovering ways to streamline these elements can also carry the benefit of reducing waste and supporting sustainability initiatives.
For the Sustainable Purchasing Leadership Council, social, economic, and environmental stewardship are paramount. To learn more about sustainability and resilience in purchasing, attend the virtual 2020 SPLC Summit taking place May 18-20th. Register today!