Tips for Quick Wins
When experiencing exceptional situations, where supply chains are interrupted, the value of maximum supply chain transparency becomes apparent.
That is if they make better use of digital channels during the COVID-19 outbreak. Due to quarantine and border closures, the supply of primary products, goods and even labor was suddenly at risk without warning: according to a survey by the Institute for Supply Management (ISM), more than three-quarters of the companies reported supply chain impacts, for example on supplier capacity and inbound raw materials and parts, needed time to research alternative sources to balance out supply and demand.
Using the insights from their COVID-19 survey and their analysis of the Chinese market, who has recovered quickly after the initial crisis, Gartner analysts have listed specific recommendations on how supply chain leaders can use technical support to provide rapid crisis management.
Supplier portals create transparency
Our LEA Reply™ Supplier Portal is the cloud-based tool which enables real-time visibility of incoming goods from your supplier network. The solution networks suppliers, retail markets, and production and takes into account the actual conditions at the local supplier's – be it fruit growers, butchers or manufacturers of protective equipment.
A sensible supplier portal does not place great demands on a company in terms of hardware: a PC, a printer, and a barcode scanner, for which a consumer device can be used, are sufficient. Also, connecting new suppliers via such a portal, including staff training, is not very time-consuming and does not require in-depth IT knowledge.
The delivery labels that are printed out are scanned with the mobile device and the information on upcoming delivery quantities is immediately available to the retail markets; this makes it possible to react on time with regard to smaller or excess quantities and to replan accordingly.
Fast response times despite lengthy digitization processes
Fast response times despite lengthy digitization processesA digital supply chain provides decisive advantages: on one hand, the transmission of information on the status of deliveries is immediately available to all parties involved. On the other hand, the amount of work involved in recording and transferring data to different systems is drastically reduced. Last but not least, social distancing is easier to practice because digital information does not require any physical contact.
The current crisis has shown that the challenge facing retailers (especially in areas such as protective and medical equipment) is enormous and can have serious consequences if major disruptions occur. Greater transparency and predictability as well as a smooth flow of information can make a decisive contribution towards keeping the supply chains between manufacturers and consumers intact to a significant extent. The current exceptional situation calls for supply chains to be made more agile, robust, and generally more efficient for the future.
However introducing a new tool does not mean the digitization of the supply chain is complete: comprehensive, long-term digital planning is also required, during the crisis and beyond.