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One of the main lessons of COVID-19 for many manufacturers and sellers is that supply chains are at risk for disruption. We saw that firsthand with food shortages and slow shipping times.
That makes logistics and supply chain management incredibly important for meeting customer demands, and
One survey of healthcare executives showed that improvements in the supply chain lead to cost savings. The healthcare executives are making supply chain efficiencies a top priority to lower costs and improve profitability.
What needs to happen to supply chain management as the economy emerges from its pandemic slumber? How can logistics managers in every industry cut costs and make the supply chain more efficient?
Read on as we tackle those questions and help you build a supply chain management strategy.
How Did COVID-19 Impact Supply Chains?
The most obvious impact the pandemic had on the supply chain is the growth of ecommerce. Ecommerce growth went on light speed, growing at a rate that was 10 years ahead of predictions.
That was great for ecommerce retailers, but flaws in the supply chain were exposed. Shipping companies needed to cut back on staff to protect workers from COVID-19. At the same time, there were a record number of shipments.
Some shipping services are still catching up on all of the holiday orders.
American Supply Chains
The traditional supply chain is global. Raw materials are created all over the world and sent to manufacturers in Asia. These manufacturers create inexpensive products and ship them back to the U.S and other countries.
While that model served corporations for a long time, it was rendered useless during the pandemic.
Manufacturers in Asia were forced to close for months. In-demand products sold out quickly and restocks couldn’t happen for months.
It’s very possible that this model isn’t going to last. American product producers are rethinking getting goods from China and other countries in Asia. Some are actively seeking a way to bring manufacturing operations back to America.
China is rethinking its strategy, too. The Minister of the Interior recently announced that China plans to be self-reliant to make computer chips and other technologies.
Post COVID-19 Logistics and Supply Chain Management
One of the immediate challenges to the global supply chain is managing vaccine distribution. This is obviously a top priority to get the world back to normal.
For supply chain managers, you have to navigate potential shipping issues, especially if your products require refrigeration. The COVID vaccines do, and that can cause your shipments to get delayed.
What will B2B ecommerce look like after the pandemic? That’s a question most businesses are asking themselves. Some believe that ecommerce isn’t going anywhere anytime soon. Others think it may drop back as face-t0-face meetings resume.
What’s likely to happen is that there will be a shift to more ecommerce B2B sales. That’s not because of the pandemic, but because of the decision-makers. Millennials are more inclined to make purchases online and they’re responsible for many purchasing decisions in the workplace.
If you still don’t have an ecommerce platform, get one online as soon as possible. This applies to every industry, including healthcare. One medical supplier of surgical supplies built their platform, and you should check it out as an example.
Developing a Supply Chain Management Strategy
How do you develop a resilient supply chain? It starts by having a great strategy. Here are the steps that you need to take to develop your strategy.
Have a Goal
Yes, supply chains need to have goals, too. Your main goal should be to eliminate waste. Your next goal is to improve the customer experience.
How do you measure success in these areas? You can simply measure productivity and supply chain spending. You can also develop metrics that are important to your customers.
For example, if you know that product packaging and shipping times are important to your customers, you can measure the speed of shipping. You can also measure customer satisfaction through surveys and reviews.
Look at Internal Assets
Once you have your goals in mind, you need to know what your assets and liabilities are. These are tell-tale signs at where you can make adjustments to reach your objective.
Audit every part of the supply chain. Work with your suppliers, manufacturers, and anyone else involved in the supply chain. Gather input and information as to where you can make improvements.
As you look at the supply chain, look at areas where your company is exposed to the most risk. Those are areas that need to be cleaned up as soon as possible.
Tools for Logistics and Supply Chain Management
How do you manage logistics and the supply chain? You could be using the wrong tools, which leads to inefficiencies and redundancies.
Companies that use a spreadsheet to manage everything are behind the times. You should have one cloud-based system that your team members can access in real-time.
How do you choose such a solution? Start by understanding your business needs. Review your audit and see where your business needs the most help.
You should have a tool that works with your overall supply chain strategy, customer needs, and business needs.
Manage Logistics and Supply Chains in a Post-COVID World
No one knows what the future holds. What we do know is that it’s time to think about what things will look like in a post-pandemic world.
We learned that logistics and supply chain management are essential to have a profitable business and meet customer expectations.
No matter what industry you’re in, you need to have a supply chain management strategy in place. You also need to anticipate changes in customer demand and how the world adjusts to getting back to normal.
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