The outbreak of the COVID-19 pandemic has completely disrupted the supply chain industry. Supply chain managers are trying to battle these challenges by working towards a “new normal” after the pandemic crisis hit. Managers are trying to come up with a new dynamic that they haven’t experienced prior to this pandemic – not the least of which is how the market is going to rebound, and how all their suppliers and customers are coping with the event. The question here is, will the demand be successfully recharged? Or are we just observing a sluggish beginning that grows in momentum more deliberately? Will Supply Chain Management software still help? Will SCM software make a difference? Will Supply Chain Forecasting Software be the right choice for my business?
In either way, there will be huge pressure to think instantly and dynamically in order to process those variables, as companies fight in returning and recalibrating their profitability. To get in line, planning will need great accuracy whereas; supply chain managers will be required to process the data in real-time to align their businesses and supply chain. Once the demand starts to normalize, businesses will have to be highly agile in their response to a constantly changing environment.
With multiple variables to account for, below are five important steps to achieve fluid supply chain operations, maximize profits, and optimize throughput, in the coming days as the doors to enhanced economy reopen.
Kickstart your supply chain planning Initially, evaluate both inbound and outbound supply chains and get hands-on with your inventory planning. Are you certain that your tracking data is accurate, or do you feel that you need to run a check on your physical inventory? Think about the state of your business 2 weeks after COVID hit, when you may have found out that a package hadn’t been processed or entered into the system before a lockdown. If your work was in progress prior to the lockdown, did it get through the QC before the end of your shift that day? Secondly, do not contemplate just the material range of effect, but also consider the cost and time of international shipments as there is a high chance that they might not be the same as before VOCID hit. Since numerous parts of the world are experiencing the effect of COVID at various times and rates, every service could potentially experience a whiplash as reserves of raw materials head to new business sectors.
Correspondingly, make sure you set aside some extra time for developing 100% transparency in tracking your supply-chain. Once this approach has been developed, assess risk through a series of relevant questions. Questions such as “What would happen if China and the United States create new tariffs?” “What would be the possible financial risks I may face with currency translations?” Etc.
Recognize anticipated talent Determine all the roles and skills required in your manufacturing process and similarly contemplate on reevaluating the jobs whose roles were redefined after the pandemic hit. Come up with a detailed description for those roles and reassess their weak points. Secondly, develop a training program to fill in gaps and, at the same time, support your current team members with individuals that have proven expertise and that match your business needs.
Company recruiters should understand skills that match your ultimate requirements and that can enhance the overall strength of the team. For a head start, look for support roles, supply-chain leaders, and programming managers. Expansion of staff can be a great boost to your bottom line.
Connect with your supply chain Aiming for 100% transparency when it comes to your supply chain is a challenging task, yet you can come up with a smart strategy by improving by improving your daily process. With the introduction of unknown crises arising every day, it’s sensible to add new tools and strategies to improve your demand. Working together with your upstream suppliers and downstream clients is also important; they are facing similar challenges and would likely benefit from your suggestions. On a regular basis, communicate with them, and guarantee that the whole cycle works consistently toward building up a reachable timetable.
Emphasize safety A successful recovery is all that you need to adapt your inventory-management and production practices to the effects of social distancing, barriers and guards, as well as sanitizing tools, finished goods, people, inventory, and the entire workplace. Check out new areas and traffic patterns where work-in-progress stocks are created. Lastly, understand what will happen to the supply and demand of PPE kits as industries around the world being to recover.
Understand the impact that investment-tradeoff has on supply chain Finally, consider all the risk associated with capital debt vs. reinvestment. Will your post-pandemic supply chain grow in order to meet this incremental addition of capacity? Can SCM software improve your process? Some businesses leverage great methods and tools with detailed playbooks. Tools like Supply Chain Demand Planning Software would surely help your team, not just battling COVID-19 challenges, but also in improving the overall success of your business.
As all businesses plan to restart their work-process with a great comeback, they have just one chance to get it right. Consider leveraging the right Supply Chain Management Software in order to streamline your business and start of the new year well. To learn more, connect our expert at Avercast today!