The Covid-19 epidemic has been a tragedy for humanity and among the multiple consequences are those that have affected the global economy and supply chain. The impact of the pandemic has extended to companies’ supply chain operations and their ability to satisfy their customers in the coming months and perhaps years.
A recent survey by the Institute for Supply Management examined the impact of Covid-19 on supply chains, and the results highlight how widespread the pandemic has been, with 95% of respondents indicating that their companies will have some type of disruption related to the Coronavirus (source).
Within a few weeks almost every stage of the supply chains suffered consequences due to the Coronavirus outbreak; despite this, some companies were able to adapt quickly, as in the case of some distilleries that converted production to hand sanitizers in a few days. Their ability to change not only provided answers to a market struggling to meet customer demand but also provided the necessary product in the early stages of the emergency. In addition, the presence on e-commerce has allowed them to distribute their products to customers through partnerships with local stores or delivery directly to the customer.
How can companies react to changes?
A question that many have asked themselves lately is: how can companies react quickly to the changes we are experiencing and how can they prepare for future disruptions?
Companies can take the opportunity to analyse whether there are inefficiencies and areas for improvement within their supply chain and improve them to emerge stronger and more competitive than before. Some key factors to consider are:
- Productivity: now more than ever it is clear that processes carried out on paper are not the solution to modern problems. Warehouse information must be digitized and readily available anytime, anywhere, and the demand for transparency and efficiency has never been higher. For example, if a company manages to increase efficiency, it can maintain a high level of service even if it has fewer workers available.
- Speed of response: Having inventory data available is critical to reacting quickly to changes. Supply chain information should be as accurate and up-to-date as possible. Having real-time information on materials, production and distribution not only allows staff to carry out their work more quickly and effectively but also to make crucial decisions for the company, able to optimise the use of materials and productivity. Companies with complete visibility into their supply chain are able to react better and sooner to changes.
- What-if analysis: Once companies are equipped with the solutions that enable real-time supply chain visibility, the entire supply chain will be more efficient and therefore more profitable. The next step that can give further visibility is that of what-if analysis. In fact, these analyses allow you to evaluate future scenarios and production plans for the weeks to come, simulating infinite possible scenarios and situations.
Companies that wish to survive and thrive despite future supply chain disruptions, now have the possibility and need to digitize their supply chain and processes for its governance, a possibility that has never been greater and full of advantages.
Improve your business and seize the opportunity
Are you trying to prepare your supply chain for the unexpected? Discover how CyberPlan is a reliable and perfectly adaptable solution to your reality, able to give you the visibility on the supply chain and the ability to do what-if analysis you’ve always needed. Increase productivity, achieve data security compliance, optimize inventory usage, and increase production planning and scheduling capabilities by calling a consultant ready to listen to your needs.