2020 was definitely not a year for amateurs. Even the most reactive companies to change had to adapt – resilience and innovation were the key words – and several sectors were forced to transform, including the supply chain.
With the growth of competitiveness and market fragility, the Supply Chain has come to play an even more essential role in business strategy. This transformation was motivated mainly by the need for organizations to reduce costs. The delicate moment worldwide has forced companies to take a closer look at their entire supply chain.
To understand this scenario, Mercado Eletrônico has prepared special content with important reflections on the subject.
Below, check out a summary of the main points and do the following: download the complete material here.
1. Identify vulnerabilities for efficient risk management
Companies of any size and segment need to be alert to internal and external threats, identify weaknesses and risks, and avoid having to deal with disruption in the supply chain. To do this, it is important to carry out effective supplier management in order to identify, assess, mitigate and respond to all threats. SRM (Supplier Relationship Manager) are great allies in this achievement.
2. Rethink the use of “just in case” and lean manufacturing strategies
The Covid-19 pandemic has closed the borders of several regions around the world, and the supply chain has collapsed. In light of this, companies have been forced to rethink their lean manufacturing operating strategies and create an alternative in the meantime.
3. Resilient supply chain, but without losing competitiveness
The supply chain needs to focus its efforts on being resilient, that is, having the capacity to operate normally, even after suffering impacts. To do this, it is essential to study alternatives to find different supply options that combine price, quality, delivery and agility. Marketplace, for example, can be quite strategic for companies to find new partners.
4. Keep an eye on additive manufacturing, technology and innovation
The need to digitize supply teams is urgent and a reality. Keeping a close eye on innovations, technologies and disruptions, such as additive manufacturing, for example, helps to make purchasing processes less slow and operational, and more strategic and assertive. Only technology can help us face the challenges of a fragile, anxious, non-linear and incomprehensible world.
5. Data has never been more vital
Data only increases over time and it is essential that companies do not wait until they are drowning in information to give due importance to the topic. Therefore, collecting and analyzing data can be the secret to achieving the much desired resilience of the supply chain.
6. Supply chain leaders have never had so much influence within a company
With the crisis, the need to create a resilient supply chain has become clear and purchasing professionals have gained great prominence within organizations. Chief Procurement Officers (CPOs) and their purchasing teams have the opportunity to increase the long-term 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 has shown that the supplier needs the purchasing company to remain in operation and the purchasing company needs the supplier to continue its operations. Therefore, establish sustainable partnerships, transparent and collaborative are not just a matter of relationships, but of survival in the market. The relationship needs to be a “win-win” for both parties in the chain.
8. Sustainability in the supply chain is a priority strategy
Increasingly, business contracts between companies will include clauses on matters of sustainability process and the use of responsible sources of labor and natural resources. Therefore, companies must include actions to slow climate change, eliminate carbon emissions, generate less waste and use sustainable components in the manufacturing process in their strategies. 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 to reduce the risk of international blockades. On the other hand, this practice has a higher supply cost and compromises the competitiveness of the supply chain, especially in times of economic recession. Therefore, creating a solution in the middle – 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 a single source, whether linked to a single factory, company or region, drastically increases the risks in the supply chain. In addition, it is important to take into account that the choice of supplier cannot be tied solely to low prices. After all, for certain products, cheap can end up being expensive.
These 10 reflections help to reaffirm the dynamism we live in today – everything happens very quickly and we need to be aware. Therefore, professionals in the Supply Chain area increasingly need to stay connected with future trends.
We recently published here on the blog The Key Skills Every Successful Buyer Needs in 2021. Now is the time to boost your skills and acquire new knowledge!
Do you like the content of the blog? Subscribe to newsletter of the Electronic Market and stay up to date with our news.