Is COVID 19 could be a black swan event that will force many companies and entire Supply Chain & Logistics Industry to prepare both short and long term strategic plans? This pandemic highlights the need to transform the supply chain & logistics models and test its resiliency to adapt while finding ways to mitigate risks.
According to Dun and Bradstreet recent data, services, wholesale, manufacturing, and retail account for more than 75 percent of businesses in the impacted region of China. On a global level-this 75 % of businesses have to serve 51,000 companies, with 938 of those being Fortune 1000 companies.
The impact on Supply Chain & Logistics is two-fold:
A. Monitor short-term and long-term demand and inventory:
This is to accommodate production loss in the wake of factory closures and economic slowdown.
B. Change of operation landscape:
As consumers stock up in preparation for potential quarantine or extended stays at home. Delivery options have also become a more appealing alternative for consumers who want to avoid making trips to the store – leaving retailers to mitigate fulfillment, while also keeping employees safe.
What changes and actions of the Retail Supply Chain amid COVID19:
Looking ahead: The importance of an advanced supply chain technology:
As new supply chain technologies are emerging that dramatically improve visibility across the end-to-end supply chain, and support companies’ ability to resist such shocks. The traditional linear supply chain model is transforming into digital supply networks (DSNs), where functional silos are broken down and organizations become connected to their complete supply network to enable end-to-end visibility, collaboration, agility, and optimization.
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Sources: McKinsey & Company, Deloitte, Duns and Bradstreet