5 Reasons why you have to keep updating the Supply Chain Design with Time

The COVID-19 pandemic has created brouhaha and shifted the way markets used to work overtime, and this includes the supply chain design too. There is no proper static design for the supply chain, and it keeps on changing with the conditions across the world. 

These kinds of supply chain altering conditions have become more familiar with time in the past two decades. However, many organizations are not up to speed when it comes to adapting the new situations at all. They are not in pace with the changing designs. The main reason why companies are lagging in this field is that they are using outdated methods.

The world is changing, and the way businesses work has been influenced drastically. But still using the same old methods to manage the business, using the old data sheets, etc. has created disruption. The shortcomings have made a fatal weakness in the fast-paced environment.

The methods that supply chain companies are using lately date the back to late 1990s. The situations, competitive demands were very different in the 90s, and these methods were suitable for companies. But it isn’t the same now, and the supply chain organizations have to know it.

Here are five reasons why companies should keep them updated with the requirements and meet their customers’ expectations.

1) Value Creation is Important than Cost Minimization

Cost minimization isn’t the first thing that the companies have to think about when it comes to customer service. They have to ensure that as an organization, they are providing excellent valued service to customers in the first place. The shift in operating environment can lead to complicated trade offs between the design objectives like cost versus the market share.

But they will help in creating an expansive design as well as a decision-making process that will be beyond the physical configuration process. This involves leasing decisions, outsourcing and go-to-market decisions. They get to think about the pros and cons of getting additional revenue by meeting customer expectations versus cutting the costs on the process and saving up money. 

The situations out there are changing suddenly, and the companies need to know whether they are going to bring in methods that are going to shift with conditions or the one that can be changed in the near term. This can be considered as a broader thing that needs to be focused on by the companies.

2) Continuous Reviewing of Policies

Disruptors such as complexity, volatility, uncertainty and ambiguity define both the market as well as the supply chains. No matter which company and how far spread its services are, it is essential for the organization to have new policies at the place now and then.

The companies should be extra agile and able to review the policies whenever they need to. Having a continuous review process in place is an essential requirement for every company out there. It is mandatory to act before a large scale disruption occurs. This way, you don’t have to look for alternate plans afterwards.

3) Local/Regional Supply Chains are Garnering More Interest

The global pandemic has proven how fragile the international shipping methods can be at times. The companies are now interested in availing services from local/regional supply chains as a risk mitigation strategy. The Brexit Controversy (trade war between America and China) had a significant impact on shipping and delivery services.

The companies that are shipping internationally should have proper design plans in place to face these kinds of disruptions so that they do not lose their customer base.

4) Artificial Intelligence, Machine Learning and Data Analytics are Important

The artificial intelligence, machine learning and data analytics are changing the way companies used to work. Machine learning tools and data analytics elucidate the structure and performance of the supply chains drastically. The supply chains are growing daily similar to the businesses, and incorporating these kinds of technologies will aid these businesses in the long run. 

The data analytics will make things easy to understand, and the visual format will become better too. Predictive and Prescriptive analytics will eventually make the entire decision-making process simple and easy.

5) The need for Multidisciplinary Processes 

The supply chain design right now needs different kinds of disciplinary processes inculcated in it with the competition that is present in the world. It is impossible to survive in such a competitive market without proper marketing. Keeping up with finances and sales is essential as they will affect how businesses work. The advanced visualization with the help of technology will help in creating multidisciplinary processes in the supply chain design without any hassle. 

The recent COVID pandemic has proven that it is essential to have a cross-functional setting so that the companies can redesign the decision-making process.

These are the five changes that companies can incorporate in their design making process so that they can maximize the benefits in the end. The supply chain design is evolving, and it will keep making significant progress with the help of different changes in their process.