Businesses plan their supply chain in a way to so the processing along the supply chain works out smoothly. This can only happen if materials from their phase of raw material to final product, flows in an undisrupted manner.
Nonetheless, this coronavirus pandemic has shown us that no matter how perfectly planned a supply chain is, its processes still can be vulnerable. Whereas, a small error can damage supply chain reliability so a deadly global pandemic can destroy it to the core.
Luckily, there are certain ways through which you can pass through economic downturns and supply chain disruption.
Supply Chain Transparency:
Now businesses can get past through supply disruption by focusing on the visibility and transparency of supply network and materials movement along the chain. Nonetheless, higher management should know about the working and operations of their supply chain. They should have a better understanding of which facility is located where and what does it produce. As a result, this help in taking decisions that are more effective. To keep a track of all the data in real time, businesses should implement ERP solutions. This solution allows getting ready beforehand for the future problems.
There is a possibility that the team is working in isolations but they are reluctant or being careless about sharing the relevant and important information between the departments. This will only add on to the damage due to digital disruption. Therefore, that being the reason, collaboration and cooperation among the team is important to surpass a global crisis. In addition, if stakeholders are engaging and operating amongst each other then everyone involved tries to minimal the contradictions and work on building a harmonious strategic relationship. Here comes the need for an ERP solution as it makes it easy to share information between departments. It also ensures that everybody is working towards the same goal.
A worldwide predicament can corrupt the capability of predicting demand. Consequently, businesses needs to closely monitor the current demand trends and their customers’ behaviour. Whereas, there are a few products that have a high demand in this critical situation. Nevertheless, as manufacturers were not ready to tackle a sudden high demand, they are facing shortages. Whereas, other businesses are trying to find the ways to cope-up with low demand. Over time, these demand fluctuations will ultimately go back to the routine demand. However, this will leave an impact on businesses strategic planning, as they will now consider on how to tackle with sudden high/low demand changes.
Try to Retain the Workforce:
Globally the companies are trying to deal with the current critical times by laying off their employees, which is not doing any good for now. Instead, worldwide there is a huge upshift to the unemployment rate. It is the time to retain people, who truly understand your supply chain processing. Moreover, it is the time in need of people to revise business strategies and align them with the ongoing pandemic situation.
In short, a worldwide pandemic can cause a supply chain disruption, which influences a company’s stability. However, it cannot seize all the manufacturing operations. The key take-away here is, to think and plan ahead for long term rather to stay strong and survive any economic, environmental or social situation, rather than just carrying out strategies just to meet short term trends and demands.