COVID-19 pandemic outbreak has created disturbances in the global supply chains. Additionally, it has also been an essential lifeline for keeping vital food, medical supplies, and various other necessities flowing in as and when needed. The pandemic has challenged the resilience, flexibility, and ingenuity of the supply chain leaders worldwide. That aside, it has also put to the test the corporate objective and values. The governments, customers, communities, and investors might judge the organizations on the way to respond to supply chain disruptions.
Michael Giannulis discusses the impact on global supply chains
The COVID-19 virus is a threat to date, and various communities and countries are following lockdowns depending on the need. And that has made the supply chain disruption severe. And currently, as the economy is attempting a restart, the supply chain will have a crucial role to play in supplying services and goods securely. Michael Giannulis says that it is essential for business leaders to make quick decisions and take instant actions for sustaining business operations to cater to the communities, customers, and clients. It is also essential to support and secure their workers.
The reshaped and repurposed futuristic supply chains should get characterized by both responsibility and resilience. It will help the communities monitor the short-run crisis and allow the companies to build their business and customer base.
Importance of supply chain planning
The massive supply chain disruption because of the pandemic led to severe financial and operational consequences. Hence, business houses in their supply chain planning should address the following:
- The supply shortages
- Demand surge and drop
- Minimized productivity
- Challenges in inventory placement
And to add more complications to this challenge, companies during the pandemic phase could not depend on any steady-state models. Instead, they had to make decisions depending on real-time data, which acted as the central nerve center for supply chain data flow. Do you want to focus on the remedy? If yes, you need to focus on the five supply chain priorities for instant action:
- Place your people first
It is essential to have healthy workforce planning and develop new ways of working and resume closed operations.
- Make use of data for enhancing visibility
It would be best to maximize the visibility into inventory, demand, supply, capacity, and finances all through the ecosystem.
- Outline segmentation for prioritizing demand
You need to carefully assess the demand as well as outline the essential micro-segments.
- Create an operation and sales team
It would be best to mobilize the dedicated planning and the implementation teams to undertake several interventions and arrange an adequate response.
- Assess the supply chain scenario
It would be best if you ran simulations to forecast where and when shortages and excesses might occur. It is also essential to run ongoing scenarios to get actionable insights that will help optimize operational metrics.
Businesses should navigate the operational and financial challenges of the COVID-19 pandemic and its impact on the supply chain. Companies should also address the requirements of suppliers, consumers, and people at large. Hence, by executing the correct strategies, the supply chain leaders can use the supply chain disruptions and its challenges into a useful predicament in the days to come.