Amrita Angappa
Do you know that the value of the global supply chain market was on a rough basis 16 billion U.S. dollars as of 2020. From this statistic, it is evident that the supply chain and procurement management software has expanded twice in the last decade.
Every industry across the globe has faced the heat of this pandemic. The COVID-19 pandemic has thrown significant challenges in the case of the supply chain industry. Continuous lockdowns, unexpected political disruptions and the changing demands of the consumers have led to voluminous change in the supply chain industry. They have halted down the finished goods and raw materials flow. On a lighter note, this pandemic has brought many previously ignored concerns to the attention of the people. Many organisations have faced vulnerabilities including losses and staff shortages owing to COVID-19 pandemic.
Eventhough the problems may have been pre-exisiting, all those issues were amplified due to the pandemic. To tackle this, many organisations in the UK and US are planning to groom their supply chain strategies to collaborate and network with suppliers, stakeholders and customers. For that to happen, they have planned to increase their investment in supply chain technology investment in areas such as AI, RPA and so on. This initiative can also help every business retain their workers.
Unpredictable and vulnerability due to lack of awareness
This pandemic has posed setbacks among the supply chain industry which they haven’t witnesses in the last 100 years. Very few companies have responded positively with all-ready attitude. Majority of them turned out to be the victims of negative effects of the pandemic.
Investments were loomed
When the market is in an uncertain phase, companies would start pulling down their tech investment. Industries such as automotive and industrial product-based companies were the worst hit. But many industries such as healthcare have also seen investors betting high.
New-age requirements for employee safety
Due to pandemic, many employees started working from home. But it wasn’t possible for a few factory workers. Hence the management had to make arrangements for physical spacing, personal protective equipment (PPE) and contract-tracing. Many labor-intensive industries are investing a huge amount of money to protect their employees.
Reskilling existing employees
The supply chain industry is gearing up to reskill their in-house employees in the upcoming years. Since the primary focus of businesses lies upon cost-optimisation, it is inevitable that they have to retain their workforce to spend less on new hires.
IoT on the go
Businesses are in need of increased visibility. To make this happen, IoT sensors and devices are in need for products where we require high-end temperature monitoring such as medicines, frozen foods and vaccines. The rate of automation, AI in machine learning and other technologies have increased to the next level. Many companies are now turning their focus on environmental and sustainability goals (ESG). This is to maintain regulation policies of various companies by bringing in sustainable supply chain practices.
Digital transformation on the go
Digitization is rising. You can connect various horizons such as procurement, planning, logistics and manufacturing digitally to automate your workforce.
Redefining your supply chain strategy is a must. Consider omnichannel acceleration, global trade flows and trade agreements.
Perform simulations and scenario planning. Look for alternate supply sources.
Focus on SKU rationalisation, reduce your procurement spend, warehouse and logistics optimisation to increase your productivity.
Reduce your work capital through supply chain segmentation and new inventory plans while changing payment terms.
In the future, the supply chain industry is going to depend upon digitization. Many new supply chain businesses would start depending upon digital practices to stay a step ahead of their competitors.
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