Why Covid 19 Pandemic made us to rethink & reimagine about our Supply Chain Strategy?
Covid 19 pandemic the black swan has adversely affected global supply chain on both demand & supply side, increasing the supplier risk, revenue leakage, SCM visibility challenges, demand vs. supply matching, customer behavior changed which affected buying patterns with logistics challenges occurred due to lockdown and social distancing.
The Pandemic has taught most of the companies across the globe that no strategy is permanent and made them rethink and reimagine on how to build tradeoff between risk and growth.
Hence efficient Supply chain is key to the running of profitable enterprise Covid 19 has forced most of the Companies and businesses to take a hard look at the collective supply chain data and realize the obvious. Many were predominantly dependent on a single country as a source of supply and there was excessive dependence on the model.
The pause of covid-19 exposed the weaknesses and many competing firms were left wondering on the very basis of their competition if all products were manufactured in the same place.
Before the pandemic the major focus of big and medium size conglomerates was to contain cost with high customer satisfaction, but very few of them realistically worked on Supply Chain risk & mitigants.
The covid 19 pandemic has taught us that how robust and efficient supply chain can create a positive impact on the performance of the business. Hence to mitigate such challenges the global firms have to start investing in blockchain, artificial intelligence and advance warning systems that will help highlight the pain points. These pain points could be over dependence on a single region or supplier, pricing pressures, transportation bottlenecks and even quality issues. This visibility will help firms resist shocks that can derail business completely.
Next generation digital solutions are now becoming a immediacy to deal with future issues and they are being built to adapt and work in situations that are yet to be predicted.
Author:
Sushil Lohia
Sushil Lohia leads the Supply Chain Practice at Tech Mahindra and has built his expertise in the practice by being a professional who has worked on the ground. He understands supply chain as a user and this provides a solid foundation to his knowledge and how to apply the same to solve business challenges. You can contact him at sl00655910@techmahindra.com.
