10 reflections for the supply chain of the future

. IDENTIFYING VULNERABILITIES FOR EFFICIENT RISK MANAGEMENT

Companies of any size and segment need to be aware of internal and external threats, identify weaknesses and risks, and avoid having to deal with a supply chain disruption. To do this, it is important to conduct effective supplier management in order to identify all threats, assess them, mitigate and respond. SRM(Supplier Relationship Manager) platforms are great allies in this achievement.

2. RETHINKING THE USE OF "JUST IN CASE" AND LEAN MANUFACTURING STRATEGIES

The pandemic of COVID-19 closed the borders of several regions of the world and thus the supply chain collapsed. Faced with this, companies were forced to rethink their strategies of operating with lean manufacturing and create a middle-of-the-road alternative.

3. RESILIENT SUPPLY CHAIN, BUT WITHOUT LOSING COMPETITIVENESS

The supply chain needs to concentrate efforts to be resilient, that is, have the capacity to operate normally, even after suffering impacts. For this, it is essential to study alternatives to find diverse supply options that combine price, quality, delivery and agility. A marketplace, for example, can be very strategic for companies to find new partners.

4. KEEPING AN EYE ON ADDITIVE MANUFACTURING, TECHNOLOGY AND INNOVATION

The need to digitise supply teams is an urgency and a reality. Having a keen eye for innovations, technologies and disruptions, such as additive manufacturing, for example, helps procurement processes to be less slow and operational and more strategic and assertive. Only technology is able to help face the challenges of a fragile, anxious, non-linear and incomprehensible world.

5. DATA HAS NEVER BEEN SO VITAL

Data only gets bigger as time goes on, and it is essential that companies do not wait until they have information problems to give the issue due importance. Therefore, collecting and analysing data can be the key to achieving the much sought-after supply chain resilience.

6. SUPPLY CHAIN LEADERS HAVE NEVER HAD SO MUCH INFLUENCE WITHIN A COMPANY

With the crisis, the need to create a resilient supply chain became clear and procurement professionals gained great prominence within organisations. Chief Procurement Officers (CPOs) and their procurement teams have the opportunity, in the long term, to increase the value of the area and show that they are essential to avoid bottlenecks and maintain business continuity and competitiveness.

7. SUPPLIERS NEED TO BE TRUE PARTNERS

2020 showed that the supplier needs the buying company to function and the buying company needs the supplier to continue its operations. Therefore, establishing sustainable, transparent and collaborative partnerships are not only a matter of relationships, but of survival in the market. The relationship needs to be win-win for both parts of the chain.

8. SUSTAINABILITY IN THE SUPPLY CHAIN IS A PRIORITY STRATEGY

Increasingly, business contracts between companies will include clauses on sustainability issues and use of responsible sources of labour and natural resources. Therefore, companies must add to their strategies actions to slow down climate change, decrease carbon emissions, generate less waste and use sustainable components in the manufacturing process. This initiative brings great responsibilities to professionals and endless opportunities for innovation.

9. RESHORING AND PARALLEL SUPPLY CHAINS

Companies have started to rethink reshoring - the practice of moving business operations in-house and lowering risks of international blockages. On the other hand, this practice has a higher supply value and compromises supply chain competitiveness, especially in times of economic downturn. Therefore, creating a midstream solution - called a parallel supply chain - can be a hybrid alternative between importing and producing in-house.

10. DIVERSIFICATION OF THE SUPPLIER BASE AND FOCUS BEYOND PRICE

Nowadays, it is essential to develop strategies to diversify the supplier base. Having a strong dependence on one source, be it linked to a single factory, company or region, drastically increases the supply chain risks. In addition, it is important to bear in mind that the choice of supplier cannot be tied only to low prices. After all, for certain products, cheap can be expensive.

This article is republished under the partnership between Nova SBE Executive Education and Supply Chain Magazine " Read the original article