Since the COVID-19 pandemic spread, retailers have stepped up their efforts and took the assistance of supply chain management to provide consumers with necessary goods and guard the health and well-being of communities.
Retail supply chains face challenges that need extraordinary measures to ensure that they can continue to deliver essential goods to stores and consumers at their doorsteps. It is better to create transparency and build quick response capabilities with platforms like Comactivity, to alleviate the short term fallout.
The following are some essential things that you need in a supply chain management system amid COVID-19 crisis.
Adaptability to New Behaviours
Since customer behaviours and shopping patterns undergo a quick transformation, you must also rethink and rearrange your supply chain strategies and procedures to match these new requirements.
For example, in recent months, the main and the safest behavioural alteration in purchasing patterns, as witnessed from a customer’s perspective, has been to replace in-person tasks with online alternatives.
If you are a retailer, you should instantly implement a digital supply chain to manage different disruptions. A digital solution can mitigate the influence of the COVID-19 in the below-given ways:
- Proper Management of Raw Material
Use a digital supply chain platform that helps you (retailers) manage raw materials to deploy them to the right factories swiftly.
- Encourage Vendor Management and Sourcing
Expanding sourcing strategies will help you to manage a crisis like COVID-19. Here, a digital supply chain solutions platform, like Comactivity gives you a feature for vendor onboarding and management. This will allow you to handle multiple sourcing locations.
- Better Postponement
When manufacturing capacity returns, you can use Digital postponement tactics to delay crucial production decisions until the last possible minute.
End-to-end Supply Chain Risk Assessments to Prioritise Critical Focus Areas
With your supply chain management, you must conduct end-to-end risk assessments to identify the changing demand and inventory levels. This will help you locate critical gaps in supply, warehousing, production capacity, and transportation.
Also, during your assessment, do not forget to outline the common aims and practical short-term and outcome-driven strategies along with divided activities among the supply chain ecosystem. This way, you can aim to leverage additional networks effectively and efficiently among different suppliers’ pool, production, and distribution networks.
After all, a crisis can increase or decrease demand for specific products, estimating realistic final-customer demand. You should question if the demand signals you are receiving, both medium and short term, from your immediate customers, are genuine and aids in reflecting fundamental doubts in the forecast.
Assess and Adjust Procurement Strategic Priorities
Alter procurement into a value generation function through your timely reviews. Also, adjust category strategic priorities to outline new business relationships with suppliers to fulfil your company’s overall supply chain objectives.
Once you use an effective and quick procurement operations system enabled by different technologies and factoring categories, it will help you plan and prioritise variables like quality, cost, delivery, innovation, etc. It will also drive you to be resilient.
Your company can introduce digital procurement technology to take advantage of supplier social networks. Using a supplier social network in your sourcing and supplier lifecycle management, you can strengthen the sourcing ability and supplier collaboration during tough circumstances.
To sum up, the present day COVID-19 pandemic has triggered disruption through all sectors with diverse layers of impact. It is time for your company to use supply chain management solutions to be able to assess, recover, and respond swiftly through your many obstacles and challenges that still stand in your way.