Amid COVID-19: What is the "NEW NORMAL" in the Supply Chain Industry?
In a survey conducted by Oxford Economics, 94% of the Fortune 1000 companies are experiencing a disruption in their supply chains as a result of COVID-19. Aside from worrying about the effects of the pandemic, people around the world are thinking about different scenarios. And it seems like the majority of people are thinking that there will be a “new normal" in the Supply Chain Industry.
DISRUPTION IS THE NEW NORMAL
With recent events currently impacting day-to-day life across the globe, no country or business is immune to the disruption that COVID-19 continues to cause across the globe. Deeply worrying as COVID-19 is, epidemics are just one of the few disruptive events that can hit supply chains unexpectedly. Other threats to supply chains in recent years have included cyber-attacks, trade barriers, and suppliers of commodities falling into distress.
In short, supply chain disruption is a great risk to companies, especially in the highly globalized age. The supply chain industry needs to transform its business model to a more proactive and holistic response to future disruptions.
BUILDING THE NEW NORMAL
Businesses are now the middle of transforming the supply chain to a “new normal” – with these three key areas.
Automated Supply Chain Focus on digitization and implement technology platforms that support end-to-end supply chain visibility. Having an end-to-end supply chain solution builds resilience and flexibility in the business operations to manage future challenges by providing overall visibility to identify, assess, and mitigate risk across the business, partners, and suppliers.
Be data-driven. Leverage data and analyze various supply chain disruptions and make timely adjustments to help prioritize your supply chain challenges and risks.
Major Crisis Management
Create a crisis management framework for major events where predefined responses will be inadequate. Put in place a Plan B for disruptive events, covering operating procedures and responses to predefined supply disruption triggers.
An automated supply chain works smarter, not harder
At present, both the timeframe and extent of the COVID-19 impact are uncertain, but the effect of this pandemic will continue to be felt even after the spread of the virus is contained. Nevertheless, it has served as a reminder for businesses that the risk of an unexpected disruptive event is present and the need for proactive planning is now important more than ever. To build resilient supply chains, enterprises should focus on building capabilities to help them prepare, sense and respond to future disruptive events.