Are there specific areas your organization is focused on or undertaking that are directly related to creating supply chain resiliency? If so, what advice do you have for others tackling the same challenges and solutions?
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VP of Supply Chain in Transportation3 months ago
We work with clients across multiple industries and companies of varying sizes, providing a fresh perspective to answering this question. Here are some things we see in the marketplace.1) Investments in predictive analytic tools to do scenario modeling and complete "what-if" analysis.
2) Cost optimization by re-evaluating tier supplier contracts and sourcing costs by applying supplier diversity initiatives.
3) Logistics and transportation route optimization studies to reduce operating overhead, improve asset utilization, enhance customer service levels, and engineer routes to reduce empty miles and downtime.
4) Capital investments in mobility and automation within warehousing and distribution facilities.
5) Automation of procurement processes with RPA tools and systems integration.
The best advice is that regardless of the areas the company focuses on, it is critical to include the right stakeholders and leaders in the conversation. Buy-in at multiple levels in strategy formation and the execution roadmap is essential.
Most importantly, having presented and spoken to professional groups on this topic -- the main thing is to pursue supply chain resiliency as an organizational initiative, not just a supply chain transformation project.
VP of Supply Chain3 months ago
Identify back up suppliers for critical raw materials - key is establishing relationships prior to the actual need. Assess ability to produce material at other non-traditional facilities within the network - having some standardized mfg practices might be of benefit here as it makes it easier to transition
are there third-party companies that could assist if needed
Ability to move people around as needed - from place A to place B. Cross-training
Build safety stock in advance
Ask yourself - what is the biggest event that would cause us a major issue and then ask yourself how to address it?
Have a prioritized plan (most important customers?) that you can execute in short order in the event that an issue arises
If there is a major event, develop a regular cadence of meetings that will provide status updates, next steps, issues and planned actions as a result. Involve cross functional team members to ensure that all are invested in the plan and actively support the path forward in aligned fashion.
It depends on where you are and where you want to be when it comes to setting the goals for supply chain resiliency. It should start with clients demand, you have to know what is the ideal stage of your supply chain resilience look like before, during, and after the disruptions. This helps setting the scope of work and areas to focus on.
When it comes to areas that are directly related to creating supply chain resiliency, cash and profitability that organization have organically earned (not loans) still be the most crucial part, without enough cushion, it is difficult to be resilient.
If your company is product based, inventory, strategic sourcing & procurement of crucial components might have to consider taking ownership or strategic contracting that can ensure the regular needed inventory, raw materials but it can also mean buffer manufacturing capacity, distribution network and logistics capacity as well.
Mapping your supply chains that include more than just tier 1 suppliers. This is not an easy task but it serves as a fundamental blue print of your supply chains. It can help organizations be more flexible and adaptive with facing the disruptions. Keeping your suppliers fluid and maintain trust is important, be fair and the old days to pressuring the suppliers to the last cent is no longer work to maintain the strong relationship. Your company can't be resilient if your (key) suppliers went out of business.
And so much more you can do when it comes to supply chain resilience. Please let me know if you have any questions. Good luck with your journey with supply chain resilience.
Have a great day.