When the COVID crisis hit, organizations had no choice but to respond to the challenges they faced by leveraging the resources they and their suppliers had at their disposal. Clearly, some were better prepared and responded with more resilience than others. Now we are many months into the crisis, and it's time to look at what went wrong and what organizations should change going forward.
Enterprise risk has never been a higher priority for businesses, executives and procurement practitioners than right now in light of the COVID-19 crisis. The coronavirus disruption has only accelerated many enterprise risks — from cyberthreats, employee health and safety, and most certainly, to supply risks affecting suppliers in complex value chains.
The COVID-19 pandemic has led to a surge in the required virtual supply chain work across companies. Aside from the pandemic, teams workingvirtually is a macro trend that newer generations making up a growing portion of the workforce expect. Looking ahead, if supply chain leaders want to attract and retain the best and brightest talent, they will need to facilitate work in new and different ways.
Having a sound tail spend management strategy has never been more important than it is today. It’s a key differentiator – and competitive advantage – in a down economy in which cash is king and cutting costs is a high priority. Procurement teams can no longer rely on direct materials for savings—those costs have been negotiated to death.
2020 has been quite a year for global businesses and especially for supply chains.
Just in the first six months of the year, the world has already witnessed some defining moments. Looming trade wars between the U.S. and China, preparations for the post-Brexit economy in the Euro zone, and an increasing focus on sustainability and environmental consciousness are all ongoing.
Though one can argue that none of these moments took the world by surprise, they did push global supply chains to review and re-engineer their operating models.
A Wall Street Journal article recently posed an interesting question: “Is the world likely to become less flat because of the pandemic?” According to the article, while globalization was the growing trend in the early part of the new century, key drivers such as rising offshore costs, localization and a shift toward services delivery has begun to take some steam out of it.
Well, many companies adopt automation in only one department of their business, while the rest of the department will rely on legacy systems. An automation platform cannot perform to its ultimate capabilities if the whole company is not on the same system. When you talk about company-wide automation, many companies are hesitant to deploy automation company-wide because it can require a lot of training and the system may not be user-friendly.
There is no shortage of analysis and predictions today regarding COVID-19 and our future. While experts of all walks of life weigh in via global news channels, healthcare organizations are still left addressing the here and now as well as surges that could happen tomorrow, next week or in a few months. For those supporting the front lines securing necessary supplies and resources, it is paramount to be able to deliver what is urgently needed.
There’s not likely to be a lot of business travel happening within most of your companies right now. There hasn’t been, globally, for a few months, as corporations introduced blanket travel restrictions from March onwards for all but business-critical or key worker travel.
COVID-19 not only wreaked havoc on public health, but it also began a cycle of disruption in sourcing and fulfillment that may never return to any semblance of “normal.” In fact, for both the short and long term, supply chain executives will need to focus on “flexible” in their job descriptions.