Change is coming, what has been the norm for all of us, especially if you are working in logistics, warehousing and distribution before COVID-19 I believe we are going to be operating differently in a post COVID world.
There have been many improvements made in supply chain operations over the years and indeed recent initiatives like Outsourcing, Offshoring and LEAN, all principally driven to reduce cost, will not be the most important element in the new “ways of working”.
Supply chains as we know them will undoubtedly change, no longer will it be all about cost.
The reality is the cost of an item can be constantly reduced by operating in the environments mentioned above, but if you do not have the specified item you need because the supply chain is compromised then the cost of the item is irrelevant.
Many major players will now incur the cost and time to create end to end supplier network mapping so that they can have visibility and understanding of where their goods are in the delivery cycle at any point in time. This new way of planning is known as concurrency planning and basically means end-end connectivity.
Redundancies will be built in and added to the cost of the item as businesses potentially create dual sourcing channels for the same critical items to ensure supply.
Insourcing and near shoring will likely increase. Nearshoring brings with it significant advantages, not only product availability, but also reduced lead-times, reduced freight costs and reduced emissions as a result of less fuel used.
What are you plans to change? Lets Talk