Supply chains were tested by COVD-19 in ways never before experienced. How companies creatively responded and improvised in the face of changing consumer behavior, intervention of health authorities and governments point to new lessons in supply chain management, including these approaches:
How Trucking and Transportation Can Act as a Buffer
Companies that have control over boosting or downgrading trucking capacity have an advantage over companies that do not. We may see this getting higher priority as things normalize post-pandemic.
How Companies Take a More Integrated Approach
Before COVID-19, companies didn’t give worse-case scenarios a lot of attention. Worse, they regarded supply chain, production planning and risk management as separate functions with different managers in charge of each. Now we know better. Companies will not only develop reality-based risk management plans, they may also entertain allocating investment into backup or insurance capabilities. They may also emphasize an expanded view of their key suppliers to better anticipate weaknesses in the chain.
How Companies Explore New Ways to Use Automation
The pandemic revealed the benefits of automation in an environment of disruption and shortage, and it’s likely companies will use automation in new ways going forward, including the very real prospect of driverless vehicles.
How Companies Used Their Local Communities
During the pandemic, companies discovered the value of using local supply chains. Local companies were often more trustworthy and reliable business partners. Local supply chains also make a difference to consumers, which makes this continuing emphasis a double benefit.
The pandemic taught us that a company’s success is decided by how effectively it manages, controls and adapts its supply chain to prevent or mitigate unforeseen interruptions.
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RESOURCES:
Entrepreneur. “Emerging Supply Chain Trends Entrepreneurs Need to Know About.” Marco Ludwig, June 16, 2021.
Entrepreneur. “Consumer Trends Demand New Supply Chain Ideas.” Philip Stoten. May 2, 2021.