How supply chain teams can prepare for the future
With all of this disruption in the past, supply chain teams simply have to pivot and address the market at where it stands. However, there are some lessons for supply chain teams in how they may navigate the next set of challenges that hit their industry.
Ensure high levels of visibility: Without a high level of visibility across your entire supply chain with your suppliers, any disruption like what we’ve seen the last 12 months would be crippling to any supply chain. Major issues like siloed systems and information bottlenecks can make any small change become massively disruptive. Functionality like aggregated data across the entire supply chain and automated reporting can make organizations more responsive and able to navigate challenges.
Create contingency plans in advance: When one supplier is hit hard by disruption, the companies that can quickly pivot to another supplier are the ones who will best serve customers and have a competitive advantage. PSG Dover, for example, was stuck with major production delays if a sourced part was missing or delayed for their technical production processes.
Once they built a streamlined dual-sourcing program optimized with citizen development capabilities, PSG Dover could source and approve parts quickly, and react to change immediately. And even before any change comes, PSG Dover can better work with its suppliers and solve major sourcing and procurement challenges.
Build an agility layer: Lastly, teams that rely solely on ERP systems to house data and manage digital transformation will be missing real-time insights. Also, being reliant on an IT schedule to make any needed changes doesn’t fit with the pace of business. While a major part of supply chain management, ERP systems can be difficult to navigate and lack actionable real-time data. By building an agility layer, teams can eliminate information sprawl and build the capabilities to make a reactive supply chain.