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In the midst of the pandemic, supply chain disruptions led to a decrease in manufacturing and an increase in overhead costs, as manufacturers had to pay a premium for goods and components. Every cloud has a silver lining, and the pandemic exposed supply chain and information management risks.
In this article, you’ll learn how the pandemic has revealed supply chain weaknesses and how critical business data can be integrated into a single source of truth to streamline supply chain management.
Which Supply Chain Vulnerabilities Has the Pandemic Exposed
A crucial vulnerability that the pandemic exposed is the reliability of suppliers and the volatile economic environment caused by the pandemic. Due to the pandemic, a supplier may go bankrupt, increase their prices due to a recession, or work stoppage means they’re manufacturing at a reduced capacity.
For enterprises recovering after the pandemic, the impact of having reduced inventories and a lack of materials to manufacture goods is devastating. Cash reserves to ride out the pandemic can only go so far, it’s now more important than ever to evaluate supply chain vulnerabilities to build a resilient supply chain management system.
Supply Chain Management on Paper
There are many disadvantages to a paper-based supply chain network, let’s take a look at the drawbacks of paper documents and how they affect your supply chain.
Lack of Visibility
Real-time Decision Making
Supply Chain Optimization
At the core of supply chain optimization is how data is collected, processed and distributed within a supply chain network. Emerging supply chain technologies such as automation, the Internet of Things, machine learning and AI can transform a linear supply chain model into a digital supply network (DSN). In a DSN, siloed data is broken down and the organization is given more end-to-end visibility of its supply network.
Streamlined supply chains are imperative to an organization’s success, especially when it comes to electronics or pharmaceuticals, where products are in high demand. By leveraging digital technology to collect and distribute supply chain data, a company is able to successfully meet future supply chain disruption challenges.
How to Make Your Supply Chain More Resilient to Shocks
Here are some supply chain resilience practices to consider:
- 91% of healthcare organizations saying they utilizing digital supply-chain technologies within 2021 and onwards.
To combat the remnants of the pandemic and to plan for the future, organizations need to diversify their vendors. The conventional supply chain model needs to evolve so that companies source from other Tier 1 (direct) and Tier 2 (secondary) suppliers around the world.
Automating Your Supply Chain
Real-time data across your supply chain network allows you not only to gain greater end-to-end visibility within the supply chain but also access to real-time reporting. Advanced analytics for real-time reporting enables your company to measure key performance indicators and also plan for instances where there could be stalled production lines or delays with deliveries.
It’s important to track driver workflows, to help you better understand mileage, dwell time and truck inspections, through digital automation accurate reports can be created carriers and shippers receive products and are paid on time.
Secondly, the pandemic highlighted just how essential it is to switch to an electronic bill of lading, as it contains pertinent data about the shipper, carrier and commodity of a delivery. Digitizing and automating the bill of lading leads to streamlining operations, reducing errors and creating more transparency within the organization so information can be retrieved easily.
The Future of Supply Chains
Implementing a digital system to streamline data management can help to overcome the pandemic’s challenges and help you prepare for future uncertainties.
Speak with an expert at SEAL Systems to learn how we can improve your manufacturing process to help you cut costs.