Priorities in Supply Chain Management for the Second Wave of the Pandemic!

Priorities in Supply Chain Management for the Second Wave of the Pandemic!

As the world grapples with the ongoing Coronavirus pandemic, the focus has shifted towards preparing for a potential second wave. With over 35 million cases and over 1 million deaths reported as of October 2020, the pandemic has brought to light the importance of robust and adaptable supply chains.

Disaster Planning

Creating or shoring up disaster plans, stress-testing them to assume the second wave will be worse than the first, and conducting honest and pragmatic reviews of readiness and action plans are crucial. The pandemic has exposed the fragility of many supply chains, and it is essential to learn from the past to prepare for the future.

Supply Chain Priorities

To deal with the second wave, supply chain priorities center on building resilience, enhancing flexibility, and accelerating digital transformation. Key priorities include diversifying suppliers and supply routes, localizing or near-shoring production, adopting a balanced inventory strategy, investing in digital technologies, implementing strong Business Continuity Plans (BCPs), focusing on supply risk management, cooperating with governments and multi-stakeholder systems, and assuring continuity of supply.

Diversifying Suppliers and Supply Routes

Reducing dependency on single sources or regions is crucial for mitigating risks from localized disruptions. This can be achieved by diversifying suppliers and supply routes, ensuring a more resilient and adaptable supply chain.

Localizing or Near-shoring Production

Improving responsiveness, reducing shipping costs, and limiting exposure to global logistics disruptions can be achieved by localizing or near-shoring production closer to core markets. This strategy can help to ensure a more reliable and swift supply of goods during times of crisis.

Adopting a Balanced Inventory Strategy

Combining just-in-time with just-in-case approaches can help to maintain safety stocks and ensure continuity during shocks. This strategy can help to strike a balance between efficiency and preparedness, ensuring a more resilient supply chain.

Investing in Digital Technologies

Real-time data visibility, automation, remote monitoring, and improved decision-making are all benefits of investing in digital technologies. Pre-pandemic digitization accelerated rapid response capabilities, and further transformation is expected to enhance supply chain agility and risk management.

Implementing Strong Business Continuity Plans (BCPs)

Ensuring continuity with minimal service outage and supporting resilience at the firm level can be achieved by institutionalizing strategic supplier relationships through strong Business Continuity Plans (BCPs). This strategy can help to ensure a more reliable and swift supply of goods during times of crisis.

Focusing on Supply Risk Management

Balancing efficiency with preparedness and innovation in supplier management is crucial for future crises. Procurement leaders must focus on supply risk management alongside cost savings to ensure a more resilient and adaptable supply chain.

Cooperating with Governments and Multi-stakeholder Systems

Enhancing overall supply chain robustness, especially in regions like Asia, can be achieved by cooperating with governments and multi-stakeholder systems for early warning, information sharing, and capacity building. This strategy can help to ensure a more coordinated and effective response to future crises.

Assuming the New Normal

Assuming that the pandemic-induced reality will continue for the foreseeable future is necessary for reassessing organizations, policies, processes, talent, supply chain design, and investments. The pandemic has exposed the fragility of many supply chains, and it is essential to learn from the past to prepare for the future.

Assuring Continuity of Supply

Supply chain professionals should implement sourcing strategies that virtually guarantee supply, such as insourcing, outsourcing, dual sourcing, or parallel supply chains. This strategy can help to ensure a more reliable and swift supply of goods during times of crisis.

Digital Supply Chain Visibility

Real-time visibility to what is going on in a supply chain is essential for making decisions. Investing in Digital Supply Chain technologies is critical for future success.

Skills Development

Investing in higher-level skills development in employees, such as holistic end-to-end supply chain oversight and management, is more important for long-term survival and growth. The pandemic has exposed the importance of having a skilled and adaptable workforce.

Supply Chain Simplification

Reducing waste, nodes, modes, handling, processes, and steps, and implementing a "Don't Touch" strategy are important for improving supply chain robustness. This strategy can help to ensure a more efficient and adaptable supply chain.

The Inevitability of Future Disasters

The inevitability of future disasters, whether natural or man-made, means that supply chain robustness will continue to be a critical issue. The pandemic has exposed the fragility of many supply chains, and it is essential to learn from the past to prepare for the future.

The Lack of Robustness in Many Supply Chains

The lack of robustness in many supply chains was exposed during the first wave, and a second wave will likely further test the robustness of supply chains. It is essential to learn from the past to prepare for the future and ensure a more resilient and adaptable supply chain.

Unprecedented Levels of Personal and Business Disruption

Unprecedented levels of personal and business disruption were experienced during the first wave. It is essential to learn from the past to prepare for the future and ensure a more resilient and adaptable supply chain.

In conclusion, the Coronavirus pandemic has exposed the fragility of many supply chains, and it is essential to learn from the past to prepare for the future. Prioritizing resilience, flexibility, and digital transformation in supply chains is crucial for ensuring a more robust and adaptable supply chain that can withstand ongoing COVID-19-related disruptions and future crises.

1. Enhancing real-time visibility across the digital supply chain is vital for making informed decisions about supply chain management.
2. Addressing the lack of robustness in many medical-condition supply chains is crucial for ensuring a reliable and swift supply of healthcare-related goods during times of crisis.
3. In the health-and-wellness sector, implementing digital technologies can lead to benefits such as automation, remote monitoring, and improved decision-making.
4. To prepare for a potential second wave of the Coronavirus pandemic, supply chain professionals should focus on supply chain management strategies that prioritize resilience, such as localizing or near-shoring production, diversifying suppliers, and adopting a balanced inventory strategy.

Read also: