In the face of global supply chain disruptions, a combination of emerging technologies and growing impetus for change offers a promising path forward for global supply chains.
Years of cost optimization, vendor consolidation and just-in-time inventory management left businesses ill-prepared for the supply and demand shocks that we are experiencing in a VUCA world. Increased natural disaster events and complex geopolitical scenario, it is anticipated that the supply chain vulnerabilities will continue, and organisations need to be mindful of it and create supply chain strategies that are forward looking.
Supply Chain disruptions are not “risks” anymore, but “reality”. Rather than trying to mitigate individual risks for a particular disruption, Value Chain based System Thinking approach is required to become resilient. We strongly believe that organisations who are well prepared for these events are likely to be successful in the future and emerge as market leaders.
The supply chain of the future will be built around the three critical components of people, process and technology (see Figure 1, below). The enormity of the task ahead can seem overwhelming, but the cost of inaction will be far worse.
In a supply chain context, retailers are closest to the consumers and furthest from the production. Supply chain disruptions manifests in out-of-stock scenario for retailers which in-turn impact retailers brand and market perception. It is of paramount importance for retailers to understand the challenges and take preventative measures to protect its business. Retail supply chain managers need to focus on resilience, sustainability and collaborative opportunities by means of leveraging people, process and technology in order design a supply chain that’s fit for the future.