5 Changes You Might See In Supply Chains Post COVID-19
Supply Chain is a vital part of an organisation that links the entire journey of transportation of raw materials to the delivery of the actual product to the end-user. The supply chain involves not just the distributors and the customers but also the suppliers and manufacturers.
Supply chain management is a pivotal point of concern for companies. 30% of supply chain experts believe that delivery costs are the toughest challenge for business e-commerce companies. An efficient supply chain not only reduces the costs but also ensures faster delivery of goods.
Over the years, the supply chain has undergone massive changes. More and more companies have started investing in managing their supply chains. Many of these companies have also adapted to the technological reforms that the supply chain has witnessed.
However, in early 2020, almost the entire global supply chain was brought to a standstill. The whole world witnessed the outbreak of a deadly disease called COVID-19. The world had not seen a pandemic of such magnitude in decades, and clearly, it wasn’t ready for anything like it.
Due to the outbreak of the coronavirus, many countries enforced strict lockdown conditions. Thus, the economy of every nation took a big hit due to these restrictions. Economists predicted that the pandemic would reduce global economic growth by 3.0% in 2020.
Just like every other industry, COVID-19 exposed the shortcomings and weaknesses of the global supply chain. One of the main reasons behind the disruption of the global supply chain was the dependency on China and the other Asian countries.
However, many of the countries have already started functioning amidst the ongoing pandemic. Of over 200 countries that were affected by the coronavirus, most of them have lifted the lockdowns and other restrictions. Slowly and steadily, every industry is trying to adapt to these changes.
The global supply chain, too, is looking to pick up from where it was before this pandemic. However, companies across the world have learned a lot from the events of 2020. You must implement some significant changes to not only enhance the existing model of your supply chains but also cope up with any future calamities.
Here are five changes we might see in supply chains post COVID-19.
1. Automation In Supply Chains
Table of Contents
Automation is the need of the hour in almost every industry. Automation not only reduces efforts and saves time, but it also removes the risk of human errors. Automation is not unfamiliar territory for supply chains. However, it is still not a prevalent practice in supply chains.
Automating activities such as packing, consumer services, and handling data will help your employees to focus on other activities that seek manual guidance.
2. Equipment Tracking
Tracking your equipment like your fleet and other machines have more advantages than one. Countries in Europe and North America have already started using tracking devices such as ELDs. These fleet tracking methods allow you to track the real-time location of your vehicles, optimise their routes, and monitor their performance.
Equipment tracking can reduce manual labour and also reduce fuel costs. The routine maintenance checks also ensure longer life of your equipment. Additionally, they also help in creating a safer driving environment.
3. Geographical Shift In Supply Chains
As discussed above, the overdependency on China and other Asian countries was the primary reason why the global supply chain took such a huge impact. However, moving forward, we might see companies avoid making the same mistake again. It does not necessarily mean the companies will considerably reduce their ties to these countries.
Companies will look for more diversity in their supply chains. Instead of relying upon supplies from a particular region, they will want to add variety in their supply chains. The same will also promote local suppliers and manufacturers to grow.
4. Visibility In Supply Chains
Visibility in supply chains means the ability of a company to track its components in-transit. Transparency in supply chains can help you to monitor your operations much more frequently. It, however, is easier said than done.
Supply chain visibility is one of the toughest challenges for companies. 69% of the companies don’t have complete clarity of their supply chains. Supply chain visibility is very crucial for companies as it will not only help them manage their supply chain efficiently but also improve the customer experience.
5. Increase In Safety Measures For Employees
As a precaution to stop the spread of coronavirus, governments in different countries have implemented necessary safety measures. These measures have also affected the way companies operate. However, these measures are in the best concern for employees as well as customers.
As the world is on its path to recovery, the safety measures will become an integral part of the working environment. A little investment in the safety of your workers can considerably improve their health, morale, and productivity.
To Wrap Up
At this point, you must be aware of the benefits an efficient supply chain brings to the table. It also cannot be denied that technology will play a key role in supply chains moving forward. Thus, adapting to these changes faster will give you a headstart.
Samsara is an IoT company that will aid you in your cause. Samsara offers you a varied list of fleet management software, which will help you track your vehicles and their routes. With Samsara’s efficient fleet management solutions, you can optimise your supply chains and increase your productivity to a great extent.
The content on this site is posted with good intentions. If you own this content & believe your copyright was violated or infringed, make sure you contact us at [email@example.com] to file a complaint and actions will be taken immediately.