The future of supply chains post-COVID-19

By Frederic Gomer
We are predicting that, there will not be a huge transformation but rather an acceleration of changes which were already expected...

As the virus began to spread out from China, Asia, as a region, provided the first lessons to their global peers on how to mitigate the impact of both supply and demand sides.

All eyes are on Asia again as it stands at the forefront of the next challenge for Supply Chains - to accelerate into recovery and rebound stronger, most likely in different ways.

In this regard, B2G Consulting, has shared their thoughts on how the future of supply chain will look like post COVID.

We explained how cash flow would be further optimised by integrating financial indicators such as cash-to-cash cycle time within supply chain operations. But companies will have to go beyond the usual inventory optimisation.

For example tools like self-billing can support to fasten time consuming transport invoices reconciliation etc…), several SC models will co-exist and will be intermediately used depending on the market condition.

Furthermore, using demand sensing approach to detect quickly unforeseen shifts, it is expected that this modelisation will enable effortless simulations of multiple scenarios.

Such simulations would enable to assess the impact of a decrease/increase of demand, a capacity excursion in a factory or distribution centre.

Lastly, distribution networks will have to be shortened, products portfolio rationalised. Sourcing strategies will focus on risk-free, nearshoring supply base with long term partnership with TCO-competitive suppliers, who value sustainability.

Digitalisation will look more like the integration of specialised, highly configurable (not customisable!) tools rather than a big bang digital transformation. With the automation of time-consuming process and low value-added activities, managers will adapt to operate at a more tactical level to influence positively to the business.

We are predicting that, there will not be a huge transformation but rather an acceleration of changes which were already expected.

It’s more about the “WHEN” than the “WHAT”, and the main challenge for most leaders will be to put those changes into new actions and seize this opportunity to embark into this demanding journey.
 

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