What doesn’t kill you will make you stronger.
At the height of the COVID-19 pandemic, bare supermarket shelves and worldwide shortages of critical PPE made supply chain headlines. Across industries, companies had little time to address logistics disruptions, shortages of parts and materials, and sudden swings in demand.
If we’ve learned anything from 2020, it’s that businesses must take action to boost resilience, lock-in business continuity, and achieve operational readiness. In order to stay competitive in today’s markets, the new “power triad” strategy – Resiliency, Continuity, Operational Readiness – must be in place in order to compete and thrive.
Supply Chain Disruptions are Inevitable
Two things are certain – there will always be continued consumer demand, and supply chain disruptions are inevitable. You need a plan to meet your consumer’s needs while in the midst of unplanned events, whether it be an unstable market or mother nature.
In a recent McKinsey industry sector survey, the majority of respondents said that the COVID crises had revealed weaknesses in their supply chains. Weaknesses that they are now actively trying to address.
100% of respondents had experienced production and distribution problems, 91% had problems with suppliers, and a whopping 85% of respondents struggled with inefficient digital technologies in their supply chains.
The path to Supply Chain Recovery –
Resilience, Continuity, Operational Readiness
In order to stay in business during the pandemic, many organizations had to rewire their supply chains at short notice. Now, as businesses embark on the journey to recovery, supply-chain leaders are telling us that they have no intention of returning to the previous status quo.
The core power triad – Resilience, Continuity, Operational Readiness – topped executive’s plans for recovery and future sustainability in an unstable business climate.
1. Increase the Level of Resilience Across Supply Chains
Using a variety of mechanisms, including dual sourcing of raw materials, increasing inventories of critical products and by near-shoring, dual-sourcing, or regionalizing supply chains, executives plan on increasing supply chain resilience in 2022.
Increasing the level of resilience reduces the impact of sudden disruption to demand, delivery, and labor, leaving businesses with more than a makeshift plan and allows more time to strategize through unique crisis.
2. Supply Chain Continuity Management
To ensure uninterrupted flow of products and services from suppliers to customers within an acceptable level and time frame, businesses must safeguard the prioritized activities of the organization and interested parties.
Real time data and transparency will drive supply chain transformation as businesses strike the balance between continuity and survival. Executives are looking into secured permission frameworks where all involved within the network of operations share real-time data. This framework of live data eliminates latency and staleness while optimizing asset leverage, customer service, and least landed cost.
3. Operational Readiness with Predictive Analysis
Intelligent technology that powers predictive and prescriptive analytics will allow businesses to draw on all available planning and execution data in the network to make better decisions.
With the power of network technology, businesses can create new and more influential roles that cut across organizational boundaries and engage in collaborative problem-solving. With a digital supply chain network and the power of automated AI-based technology, businesses can make better decisions, and solve more problems than previously thought possible.
Take proactive steps to remain competitive into 2022 and beyond. We’ll help you ease into operating smarter and preparing for future success.
Contact IndPro specialists to help you navigate your own path to supply chain recovery.
IndPro Services, a leader in U.S. Federal Government and commercial systems procurement, provides efficient, innovative, and results-driven solutions. Dedicated to improving efficiency in warehouse and distribution center operations, we work on the same side of the table with you to help you procure the best possible solution for your specific application.