The COVID-19 pandemic has posed important challenges for supply chains globally. Multiple national lockdowns continue to slow or even for the time being stop the flow of raw materials and finished goods, disrupting manufacturing as a result. However, the pandemic has not necessarily generated any new dares for supply chains. In certain areas, it brought to light previously unseen vulnerabilities, and undoubtedly, many organizations have suffered staff shortages and losses due to COVID-19. But overall, it has accelerated and magnified issues that already existed within the supply chain.

Impacts of COVID-19 on supply chain management practices

1. Supply and demand

The immediate & most obvious impact of COVID-19 on these supply chains was that of supply. There were clear increases in demand for many products because of consumer concern about supply. This exacerbated real issues that were arising throughout the supply chain and led to actual supply stress, resulting in a positive feedback loop that deepened the problem.

2. Supplier resilience

Similarly, applicable across all sectors was the significance of supplier resilience. This pertains to multiple areas of a supplier’s business, ranging from financial stability and governance to the type of service or good they provide, and where that is itself created and delivered. This is why the link between good sustainability, ESG performance, and resilience has been made.

3. Behaviour change in supplier and supply change management

As already mentioned, resolving instant supply chain shocks has required creativity. For instance, we have seen clients placing their own employees into supplier businesses to ensure continued production at their required levels. However, it has additionally involved the extension and embedding of responsible supply chain practices which have been evolving over the past few years.

4. The importance of supplier diversification

A vital focus for organizations is to carry out some type of supply chain mapping. This helps to provide transparency across the supplier base, ensuring that organizations simply understand who their suppliers are and where their goods and services are coming from. The greater the visibility that can be achieved over the tiers of the supply chain the higher the potential there is to de-risk.

5. Increased supplier engagement

The other large shift in supplier management we have viewed as an outcome of COVID-19 is in terms of both the way in which suppliers are assessed and the way in which they are continually occupied with. The width of assessment has evolved from perceived business-critical requirements, for example, insurance documentation and information security, to become more holistic. Labor practices, sustainability programs, environmental targets, and emissions are covered in both qualification assessments and ongoing management indicators for suppliers.

Conclusion

Though some sectors were hit hard by disruption, there were some winners, notably life sciences. But throughout the board, protecting, retraining, and reskilling the workforce is an important priority, along with investing to make the autonomous supply chain a real possibility. 13SQFT.COM helps to streamline processes in the supply chain. 

Get in touch with us today to ensure your warehouse plays a main role in supply chain management.