Exciting Times for Global Supply Chain

Yes, I mean it. These are exciting times for Global Supply Chain. Wondering why! Let's look at:

This is a great time of Supply Chain innovations. It is said " Necessity Is The Mother Of Inventions". Supply Chain over the years have seen many innovations, which were necessary for the changing business scenario and consumer mindset. May it be the time of Industrial Revolution or very recently the phase of Digital Revolution, Supply Chain has always responded with solutions which are apt to the need of the time. We're currently going through one more such phase and I'm sure the Supply Chain thinking brains have already started thinking how the current situations can be leveraged or new methodologies can be developed to continue the engine of Supply Chain.

Below are some areas which showcase how Supply Chain is gearing up to face the new expectations from the consumers:

a) Contactless Delivery: Current situation needed a solution, where consumers can avoid the touch but still receive the product. Most of the essential services companies are providing a contactless delivery. Thanks to the massive growth of digital payments, which have acted as a catalyst to this change. I'm sure this is going to stay in the days to come even for non-essential goods as well, as consumers have become much conscious about Health & Hygiene

b) Food Delivery is into Essential Delivery: Praiseworthy innovations by Food Delivery companies to come in the forefront of service in these tough times. Companies like Swiggy and Zomato are giving special service of Home Delivery of essential goods within minutes. This in itself is going to rewrite the way e-Commerce companies were plying. We're going to see increased demand of such services from consumers in the days to come. Kudos to idea makers!!

c) Pharma Home Delivery: Although the option was available, it has become more prominent in current scenario. We are going to see an increase in home delivery of Pharma products and I'm sure more and more players will enter this phase of distribution service.

d) Rise of Local Stores: For the last few years, this part of the Distribution Channel was getting the hit of competition from large e-Commerce companies. Current scenario has reassured their importance in consumers' mind. Solutions like Jiomart in India, is going to leverage this capability to a great extent in the days to come. Such stores on their own, may also start Home Delivery service.

e) Leveraging Train Network: In India Indian Railways is doing a fantastic work in the current pandemic situation. It has come with many innovative ideas, like 2KM long Anaconda Goods Train, Annapoorna Trains, Jai Kisan special goods train etc. which got implemented in quick times, to ensure uninterrupted supply of essentials across the country. Many organisations have noticed this quick service by Railways and this gives a great possibility of leveraging Railway Cargo services in the days to come by many industries.

Few steps that Organisations can take to strengthen their Supply Chain and prepare for upcoming future:

1. Supply Chain Visibility: It's all the more important now to develop a system to have visibility of the complete supply chain flow. A digitally connected network with suppliers across the globe and a regular monitoring of supply situation will help organizations take corrective action before it's too late. Although this might not give a complete solution, but atleast companies can minimise their loss on a lost order, shipment in transit, insurance cost, overheads etc. For many companies, tracking of shipments during current situation has become a nightmare and there's an air of uncertainty and risk prevailing for the huge amount of inventory in transit across the supply chain. Track & Trace Solutions, therefore, is a must for all supply chains in the days to come. Visibility and Traceability are the key to make your supply chain more agile and resilient!
2. Use of Blockchain to Achieve Data Privacy: Many suppliers are reluctant to provide data visibility due to possible risk of information getting misused, as information and data considered to be the most valuable asset. A blockchain could be a useful system to ensure data privacy in such cases. Blockchain technology secures and authenticates transactions and data through cryptography and thereby it gives comfort and assurance to the supplier that shared information will remain between the two parties only. When created properly, suppliers can audit their data-sharing permissions directly on their own blockchain node. At the same time, their data can be securely distributed to others in the blockchain network without requiring the point-to-point integration that centralized systems do.
3. Balance between Centralized vs Decentralized Network: A Centralized distribution network design might be a cost effective solution that many Organisations were trying their hand with, however, the current situation has taught many that there has to be a fine balance between a Centralized vs Decentralized network. When Logistics services are limited, opportunities might be lost due to an inability to serve quickly.
4. Spread Supplier Base and Go Local: I'm sure many companies are seriously working on this aspect of future proofing their supply chain. Organisations have reaped the benefit of single economical sourcing option for quite sometime and have also realised the risk it brings. Now, it's time to spread the supply base and thereby reduce the risk of going out of supply. Further, going local wherever feasible, will not only make sourcing more reliable and assured, but will also challenge local suppliers to improve on quality, cost optimization and being globally competitive. This will be a positive change for the country's economy and well being.
5. Give Importance to Last-mile Channel: Although for B2B businesses, nurturing the business relationship with Distributors and Partners is important, organisations now should also give focus on last mile channel partners as well, due to their increased importance. POS data sharing from last mile partners should gain more focus with some incentive scheme for such partners. This'll make supply chain more agile and responsive to changing consumer behaviour.
6. Supply Chain Hygiene: Current situation have made it mandatory for organisations to focus on hygiene within their supply chain, to safeguard the health of their employees and also to gain customer confidence. This process should continue even when it's not guided by any Govt authorities. Companies who'll continue to focus on process and employee hygiene will be valued high in consumer mindset and will therefore have higher chances of attracting more customers. Employees will also feel at ease, to work with such organisations, which will help retaining talents.
7. Develop Employee Skills: Supply Chain Executives need to unlearn and relearn Supply Chain in the new world. Gone are the days of manual data crunching and being aversive in adopting technology. Employees will also have to learn the digital supply chain concepts and get themselves accustomed to use them on job. Employee productivity improvement will be one major area that most companies will be concentrating upon. Hence, employees should themselves focus on how to improve their per hour productivity, by working smart. I'm sure in upcoming job interviews, much focus will be given on these aspects. Ability to manage chaos by keeping emotions at control will be key to success for Supply Chain managers.

Supply Chain is geared up for the next revolution! Are you ready?

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