Can a pandemic be beneficial? I did not know until I read this

  • Amidst the pandemic, manufacturers need a superior perceptibility into the supply chains of their suppliers, a practice worth lasting
  • The most robust firms might use a “control tower,” or a supervisory platform, which governs a real-time, integrated and well-informed supply chain through end-to-end visibility and analytics
  • Procter & Gamble, applied cloud-based platform to provide instantaneous information on production and outward demand to its supply chain control tower
  • The deployment aided minimalize the fallout when Hurricane Sandy knocked New Jersey in 2012, unsystematic production at a factory producing 91% of its perfumes
  • The first impact started with manufacturing shutdown in China, followed by downfall in local demand. As the virus spread, the same jolts hit other Asian countries, including South Korea and Japan
  • The second wave moved into Europe. First, supply scarcities from Asia (resulting from the first wave) and then local production cessations hit European companies
  • The third impact was taken by North America. Alike to the pattern in Europe, US companies were primarily hit by the impact of the Asian and European supply-chain commotion shock waves before domestic effects started to reveal themselves
  • Achieve endwise pellucidity on its supply chain and cope with the instantaneous situation by implementing indispensable ad-hoc actions
  • Setting up of a dedicated task force working towards development and assessment of manifold demand situations for the next six to eighteen months
  • Determination of available supply options in Asia. The companies might need to meet the requirements of new suppliers, thoughtful deployment of spot buys, or possibly protect strategic supply chain control by obtaining precarious access to secure sufficient supply until complete reclamation
  • Supply chains are in dire need to advance. Until now, most have been based on incremental trade-offs between cost and service.
  • Supply chains are sensitive, uncompromising, and at best responsive. As service demands have amplified, companies looked to elevate efficiency. This was somewhat accomplished by reducing the flexibility and resiliency of the supply chain.
  • Supply chains provide services the same way they did 10 years ago. A cost-center outlook slowed down the adoption of much-needed innovations.
  • Assess component shortages: Companies with wide-ranging international supply chains should carefully judge the shortage of constituents required for production
  • Increase communication and visibility: Enhance visibility of the supply chain. Improve communication lines for better coordination between vendors, suppliers and the companies receiving the requisite components or products
  • Make contingency plans: Companies must seriously consider implementing contingency plans to mitigate the impact due to supply-chain disruption
  • Consult among departments: Demand planners should consult sales departments and data analysts to meet demand
  • Centralise processes: Centralise all buying, inventory management and distribution to leverage distributors
  • Devise new solutions: Proactively implement predictive data models and business intelligence solutions
  • Capacity: Identify and secure logistics capacity. Prearrange logistics capacity to minimise exposure to potential cost increases
  • Transportation: Adopt flexible transportation methods where possible
  • Inventory and consumption monitoring: Develop an interactive dashboard to monitor inventory consumption behaviour
  • Fleet redeployment: Reallocate taskforces and inventory to high-demand sites and customer segments
  • Retort to the e-Commerce surge: Go All-Out to meet the raised customer anticipations as e-Commerce providers upsurge market share and logistics competences

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Acuity Knowledge Partners

Acuity Knowledge Partners

We write about financial industry trends, the impact of regulatory changes and opinions on industry inflection points. https://www.acuitykp.com/