When the news was only about the local outbreak of a pandemic in the remote Chinese city of Wuhan, we didn’t take it seriously. However, in an extremely short period of time, the corona virus became a pandemic, paralyzing most of the countries and causing drastic restrictions. We, at Strapa-Pack, have also had a first-hand experience of the negative consequences; we had to make a lot of tough decisions…
But it’s time to get back on our feet and look to the future!
The negative impact on businesses has affected almost all industries and demand has decreased as air puffs out of a balloon.
At the beginning of the crisis, the focus regarding the supply chain was on finding alternatives: rethinking distribution and, to some extent, think about which supply chain should be changed or made redundant.
As the disease spread across Europe and later North America, Latin America and Africa, suddenly the focus shifted to survival. At the moment, Covid-19 is mostly about dealing with consequences and fighting off punches.
However, it is time to get on our feet and follow the example of strong leaders and companies: we must start living in the now while transforming tomorrow. It’s the best we can do, isn’t it? There’s no other direction but going forward.
The next item on the agenda: supply chain risk management
Life goes on! As the world’s countries ease on restrictions allowing travel and as consumers start to buy again, supply chains will be under increasing pressure. We are almost certain that the supply chain and its risk management will occupy a prominent position on the lists of corporate strategic plans.
Unfortunately, this topic appears too often, but it is only on the agenda of corporate governance and the board of directors in times of crisis. However, risk management of the supply chain does not cover only the functions necessary for operation and implementation. A large part of the supply structure is placed on the planning table in the form of technical solutions, materials and components and often implicitly selecting a particular supplier. This is where successful leadership plays a very important role in managing supply chains during a possible crisis.
Operational conditions for risk management of the supply chain should be established
For effective risk management and redundant supply chains, the organization of the supply chain should be involved in the early stages of the product development process. And to do well at this stage, you need impeccable organizational skills.
To establish the operating conditions of the supply chain, it is also essential to ensure that employees are aware of the commercial/consumer needs and that they consider creating and maintaining a competitive advantage and the needs of consumers important.
The supply chain has never played a more complex and demanding role than it does today.
So it’s time to get off the ground and make things right. 😉