Now, many companies are taking a close look at their supply chains to see what they can do to reduce the impact of future disruptions. There is no 100% foolproof solution, but examining data, introducing new technology, and identifying alternate supply sources are a few ways companies are taking charge of this critical aspect of their operations. Here, we’ll explain this process in detail.
Ideal Supply Chain Conditions
An ideal supply chain scenario for a company country email list involves an agile system that allows operators to get what they need when they need it. For example, manufacturing businesses must be able to get the components they need to build their products so they can quickly respond to orders. Anything less puts them at risk of customer defection to competitors that can deliver.
The ideal system allows such companies to switch to new suppliers when their regular ones slow or stop. A reliable and flexible supply chain is even more critical for businesses that operate on a just-in-time model to avoid the cost of unnecessary storage space and the potential for unused inventory. No backup materials or inventory means no Plan B when supply chains are disrupted.
Another component of an ideal supply chain is the right technology, which can help operators understand the status of their shipments at any given moment and quickly identify alternatives when problems occur. Powerful analytics can give operators information much faster — sometimes even predicting issues before they happen — and in much more detail than human analysis alone.
Supply Chain Issues
During the pandemic, businesses had focus on your business goals problems getting everything from toilet paper to personal protective equipment (PPE) to food to parts to build automobiles and renewable power generation equipment. In turn, their customers — other companies and consumers — suffered.
Second only to revenue, global supply chain operation has been the most seriously impacted area of business during the pandemic. As companies have dealt with this issue, they’ve become more aware of supply chain risks than they were prior to 2020.
Yet, rampant worker shortages due to widespread illness and the need for social distancing aren’t the only circumstances that can cause supply chain problems. Natural disasters are becoming both more frequent and more extreme, leading to supply chain disruptions lasting up to weeks at a time. Cyberattacks are another increasingly common cause of supply chain interruption.
How to Adapt
In response to supply chain issues gambling data experienced during the pandemic, many companies are shifting their supply chain investment goals to reduce disruption. According to global consultancy Bain & Company, the current focus has shifted away from customer-centric concerns and toward things like flexibility, increased resilience, and business continuity. Part of that effort includes changing where manufacturing takes place to reduce supply chain risk.
