In the wake of the pandemic, we have seen the supply chain consistently challenged, sending ripples of effects felt across the entire world. Too often have we seen products being delayed, with supermarkets missing entire sections, people’s packages being delayed and product based businesses taking the full brunt of this. The pandemic shut down ports, causing products and their route to be disrupted. With the pandemic largely been put behind in western countries, the supply chain is picking up again, and life is slowly returning to normal. However, challenges still remain, even before the pandemic, and these challenges can significantly affect the way a business operates and sends and receives products to customers. Productivity and profitability are two key areas which have seen the most impact, and both are vital to the operational ability of a business. With this being said, this blog will outline some challenges to the supply chain that remain to this day, and how these can be overcome to ensure success.
Not Enough Materials
During the pandemic, demand for online products increased dramatically. With more people than ever stuck indoors, online shopping became a favourite pastime for many of the population. This caused a significant increase in demand, and put strain on the supply chain. Having enough materials to keep up with production which correlated to the high demand was and still is in some cases a serious issue. One of the best ways to combat this is to ensure you have enough working capital ready in your supply chain in the case of spikes in demand. This way, you can continually purchase materials from suppliers to keep up with increasing demand for products. Having a ready amount of capital at all times is crucial to ensure this.
Difficulty In Forecasting Demand
Initially, businesses had data sets ready to gain insights on the supply chain, and how demand may increase or decrease. With the pandemic, these data sets were disrupted, leaving many businesses in the dark as to how demand may fluctuate. This of course caused serious issues, and businesses were unsure as to how to treat their supply chain. They didn’t know whether to increase production or decrease it, and so on. Now, with the pandemic mostly over and business returning to normal, new data sets should be continually developed. Data should be collected and formed into these sets to allow businesses to gain insights through forecasting. Much like they did before the pandemic, businesses should turn to data centered decision making, and new data sets should be collected to reflect current conditions.
The world is changing, and all businesses know that unless you are keeping up with technological change, you will be left behind. Digital transformation applies directly to the supply chain. The adoption of technologies such as drones, smart robots, software for management and Internet of Things (IoT) products can bring a myriad of benefits to any supply chain. By looking into these technologies and how they can be integrated into your operation can ensure that you increase productivity and efficiency, while staying relevant in the new world of technology.
How Can We Help?
Here at BCR, we are experts at all things to do with the supply chain. We are well educated and experienced in the challenges that your business operation faces, both during the pandemic and in its wake. Our team of experts can provide qualified advice and manage your supply chain to overcome any challenges that it may be facing. With a wealth of resources available at our disposal, we are able to transform your business operation into one brimming with high end technology, and ensure success and relevance in the new world.