How to Build a Resilient Supply Chain during COVID-19?

The COVID-19 crisis has deeply affected supply chain management across the globe. Increased border controls have put restrictions on moving goods from one place to another freely. Also, growing customer expectations have made it mandatory for companies to incorporate new technological measures – real-time order monitoring, inventory visibility – and ensuring super-fast deliveries. Although inclination towards the adoption of digital tools has seen a rise in the past few years, it has often been limited to the likes of Walmart, Alibaba, Amazon, etc. The pandemic has acted as a catalyst for small businesses and start-ups to increase their reliance on digitization instead of brick and mortar. This article describes 3 key actions that businesses should take to effectively respond to supply chain management issues during the COVID-19 pandemic.

1. Refine your vision

For leaders to make effective decisions, it is important for companies to device logistics control towers that can collect real-time information. This includes end-to-end inventory levels, bottlenecks, technology restrictions, capacity limitations, demand forecasts, and market information for both – warehouses and third-party vendors.

Also Read: How to Maintain a Healthy Supply Chain during the COVID-19 Crisis?

2. Make your processes flexible

To make it through such uncertain times, your supply chain management processes must be flexible. Companies should formulate different plans for serving at micro and macro scales according to customer demand. They should devise new load-sharing mechanisms on the lines of the Uber-model or seek help from communities or individuals who would like to take up freight jobs at affordable rates. Also, when governments have put a restriction on the number of people who can be out on the streets, companies must sign contracts with freight companies to increase their load capacity. Moreover, companies should decrease their reliance on cash and check transactions and instead allow customers to pay through online modes – OTP, mobile wallets, etc. This will make deliveries completely touch-free and minimize the spread of the infection.

3. Step-up your communication

The world is going through a rough phase. Companies need not only devise new ways of working but also empathize with agents – employees, departments, and third-party vendors – that help better the supply chain management process. This requires companies to engage proactively by making their communication clear and precise. The following points show how they can do so:

• Engage with different departments such as customer service and procurement in the supply chain management process to understand what customers are looking for and to gain deep knowledge about service level agreements respectively.
• Revise your service level agreements from time to time and update your customers and vendors about it.
• Be a lighthouse of knowledge and share important articles and information based on facts, figures, and statistics released by world-renowned institutions (such as WHO) to alert your customers about the imminent danger of the infection.

The COVID-19 pandemic has bought the entire world economy to a standstill. Among other affected systems, supply chains have been facing a tough time. This is where we can help. At Sage, we have a world-class ERP for supply chain management that will take care of all your needs – providing a solid vision, making your processes flexible, stepping up your communication, and helping you set a remote working team without any difficulties. To know more about it, SMS SAGE to 56767. You can also write to us at sales@sagesoftware.co.in.

Disclaimer: All the information, views and opinions expressed in this blog are those of the authors and their respective web sources and in no way reflect the principles, views or objectives of Sage Software Solutions (P) Ltd.