The emergence of COVID-19 cast a revealing spotlight on our global supply chains, exposing their vulnerabilities and the dire need for a dependable and adaptable system. Despite the lessons learned, a staggering 62% of organizations still grapple with incomplete supply chain visibility. It's time to heed the call for reliability and resilience by embracing a new approach.
In this blog, we unravel the strategies that can help us construct a more resilient supply chain for the future.
Supply chains rest on three pillars: people, processes, and technology. The pandemic thrust two of these pillars into disarray: a workforce grappling with layoffs and lockdowns and pre-COVID processes that wobbled in the face of unprecedented disruption.
Enter technology. According to Ernst & Young, 64% of supply chain executives anticipate an accelerated shift toward digital automation due to the pandemic. By 2035, nearly half of all supply chains are projected to embrace autonomy—driven by robots, driverless vehicles, delivery drones, and automated planning.
Resilience demands adaptation. Procter & Gamble's real-time cloud-based platform showcased the power of technology in times of crisis. To ensure robustness, forward-looking companies invest in supply chain resilience to mitigate risks and enhance efficiencies. Today, the focus is on tech-driven recovery and proactive preparation for future disruptions.
The pandemic spotlighted the significance of agile manufacturing and the flexibility of multi-sourcing. Shockingly, only 31% of companies have explored alternate sources for 70% or more of their tier 1 suppliers, as revealed by APQC data.
Embracing change is a critical move. The US grocery company Albertsons serves as a prime example—adopting multi-sourcing, collaborating with suppliers, and optimizing SKU management to ensure stocked shelves. This agile approach proves vital for DTC companies, enabling them to pivot quickly, transform challenges into opportunities, and establish a robust supply chain foundation.
The pandemic starkly exposed a deficiency in collaboration within supply chains—a deficiency that drove decisions, risks, and response times astray. McKinsey's research uncovered a striking correlation: companies fostering regular collaboration with suppliers experienced greater growth, lower operating costs, and elevated profitability compared to sector peers.
Collaboration is the foundation of supply chain prosperity. Breaking down silos becomes paramount. Divisional synergy ensures products and businesses are future-proofed. For instance, close alignment between designers, engineers, and supply chain leaders aligns product design with trends and consumer demands.
Integrating cross-divisional cooperation as an integral part of daily operations can preempt disruptions and production halts, laying the groundwork for resilient, adaptable, and thriving supply chains.
Portless: Pioneering Resilient Supply Chains
In the pursuit of a supply chain that stands resilient in the face of challenges, Portless emerges as your steadfast partner. We don't just adapt; we revolutionize. With the potential to reduce lead times by 10x and elevate profit margins by a remarkable 30%, Portless is the bridge to a future of supply chain triumph.
COVID-19 altered our landscape, but it also gifted us insights into fortifying our foundations. It's time to evolve, learn, and build. Explore how Portless can redefine your supply chain resilience. Contact us today.
The journey toward a resilient supply chain begins now.