The COVID-19 pandemic largely affected the global supply chains. The nationwide lockdown slowed down or temporarily stopped the flow of finished goods and raw materials. Many organizations faced a shortage of staff and losses. While in some cases, it revealed vulnerabilities, which were not previously visible.
In short, it didn’t necessarily create new challenges for the supply chains but did amplify the ones which were already present. To overcome those challenges, supply chain leaders started implementing different strategies. However, the problem was that those strategies only addressed the challenges partly.
In order to determine the efforts you need to put into achieving greater impact, start by fairly assessing your supply chain planning function. Later, you can update your strategy to build stronger supply chain resilience with the below 3 tips.
#1. Internal Activities Matter
Most of the time, supply chain leaders are more focused on building relationships with supplier partners and external stakeholders. They pay so much attention to the external activities that they overlook the dependencies within their own organization.
However, sales, finance, operations, IT, and even engineering are equally important and can contribute to the development of a resilient supply chain solution. So, you need to break down the silos and build a bridge between the supply chain and other functions that can optimize efficiency and profitability. According to the consulting firm, Bain & Co., companies that take the cross-silo approach for cost management are likely to double their savings.
#2. Supply Chain Management Is a Team Job
The key to a more effective supply chain planning is when you plan it collaboratively along with your stakeholders. When you work closely with your suppliers and customers, you’ll get an even better chance of facilitating an exchange of requirements and capabilities. This will ensure that your resources are correctly aligned to the goal of meeting on-time market demand at the right price.
#3. Power in Planning Comes From Knowledge
Embracing cutting-edge supply chain technology enables companies to improve visibility throughout the chain. The more you can share information with your supply chain partner, the smarter and more strategic your planning will become. This information can help you to draw conclusions and recommendations.
You can also employ data mining and analytics tools to get real-time insights on marketing trends and the ever-changing supply and demand signal. It will aid your organization to plan your supply chain with more flexibility, efficiency and accuracy.
While the pandemic did disrupt many things within the supply chain, do know that all of it was inevitable. So, instead of looking at it as a concern, think of it as an opportunity. And try to make the most out of it by using the above tips for building stronger supply chain resilience.