The global supply chain experienced a seismic shift in 2020 due to the COVID-19 pandemic. Three years later, the supply chain remains in flux. And businesses must continue to adapt and find solutions for challenges in their new operating reality.
While the post-pandemic world may look different from what we used to know in the supply chain logistics industry, there are clear opportunities for global supply chain companies to find success.
Our supply chain experts have identified solutions to common vulnerabilities for global supply chains in a post-pandemic world. Take a look at our guide to help you form an action plan that fits your supply chain.
The Problem: Common Global Supply Chain Challenges
Uncertainty has become the new normal for supply chain companies that do business worldwide, and it’s driven by many factors. For instance, companies must cope with longer lead times due to the following reasons:
- Economic instability in certain regions.
- Reduction of transportation options in some trade lanes.
- Increased costs due to supply shock.
- Geopolitical issues resulting from wars and labor strikes.
At the same time, customer expectations remain high – they want orders to be fulfilled faster and more accurately than ever before. This situation makes finding solutions that balance customer needs with operational realities a top priority.
Next Step: Know Your Starting Point
Understanding how vulnerabilities in the supply chain are affecting your business is key to developing a strategy for success. Take time to assess the current state of your logistics strategies and production strategies and determine where inefficiencies and vulnerabilities exist.
A great starting point is to understand the cash-to-cash cycle of your organization.
Optimize Cash Flow
Cash flow is the lifeblood that allows a company to thrive and build a resilient supply chain. By understanding where cash is coming in and where it’s going out, you can identify areas to optimize and increase efficiency.
In addition, your company must examine its lead time on both the supply and demand chain sides. Lead time can change for numerous reasons, including the following:
- Changes to customer orders.
- Supplier performance.
- Working with new shipping and logistics providers.
- Government regulations.
Learning how lead times affect your cash flow can help you to prioritize improvements throughout your company.
Do You Know Your Safety Stock?
Examining your business’s safety stock requirement is also essential. Safety stock allows companies to continue operating in the event of a disruption and provides a buffer against sudden shifts in demand.
Knowing how much safety stock is necessary for each product and having a system in place to monitor it can help ensure that your company has enough inventory on hand at all times.
Do You Have Visibility?
Finally, you should have visibility into suppliers and carriers. Real-time visibility will allow your business to measure performance metrics and drive continuous improvement.
For example, you can compare the performance of each supplier to gauge which supplier is performing best for your needs.
Take Action: Strategies and Supply Chains
Now that you understand your starting point, it’s time to increase supply chain resilience and become more agile. One way to do that is to evaluate the cost/risk factors associated with all of your trading partners.
There is a delicate balance in managing the cost/risk that is heightened by the recent disruption in the global supply chain. Flexibility with those partners has become increasingly important as demand has seen some significant swings in specific industries.
The key is to increase visibility and accountability with suppliers and carriers. Then, you will have information at your fingertips to drive toward improvements, increase resilience, and become more agile.
Your company can also benefit from embracing supply chain innovation, using automation, and streamlining processes. Automation can help reduce costs, increase efficiency, and improve accuracy. Artificial intelligence (AI) can be used to provide real-time insights, monitor supplier performance, and predict future demand.
Expert Support: Optimize Global Supply Chains in a Post-Pandemic World
CloudLogix merges the power of automation and centralization to help companies build resilient global supply chains. Our platform increases visibility with both suppliers and carriers by centralizing and socializing data. The system can be used internally and externally and is configured to allow access to a wide range of interested parties as designated.
Using CloudLogix, our clients have the power to designate business rules and parameters for compliance, creating an environment that gives flexibility to managing the supply chain.
Companies can also monitor risk and performance metrics in real-time, allowing you to make more informed decisions and move from a reactive to a proactive response. Plus, our robust reporting capabilities allow you to execute specific actions:
- Create performance metrics.
- Analyze the data.
- Create deliverable feedback against goals.
Let CloudLogix be your partner in driving positive change for your global supply chains in a post-pandemic world. Contact us today to learn more about CloudLogix and schedule a demo with our team!