Supply Chain Communication during Crisis Management

Covid-19 Pandemic has hit the world economy like no other event in history and businesses across the boundaries have struggled owing to lock-downs and restrictions. Biggest responsibility has been on Supply Chain folks to make sure that businesses are kept running and don’t allow the crisis to cause major disruption. This is easier said than done, as you have scarcity of resources both internally and externally, moreover this environment poses a unique need to manage both demand shocks and supply disruptions.

Current situation is high on all counts of VUCA (volatile, uncertain, complex and ambiguous) & the scale of the impact eclipses anything most supply chain leaders will have anticipated. 

This unprecedented crisis has bought lot more limelight on Supply Chain and one of the Key differentiation for effective crisis management will be handling of "information flow" & communication. 

It is important for Supply Chain that during crisis, lines of communication are open with all Stakeholders so that all are informed of developments & challenges; this helps team to avoid scaremongering, and focus is on developing and successfully implementing action plans for risk mitigation.

Conventionally Supply Chain community has been well versed in transaction specific communication with direct partners but communicating emphatically highlighting business-related challenges with other stakeholders is critical during such crisis.. Communication that is timely, transparent and two-way is essential to manage any crisis.

Poor communication can create obstacles to collaboration, relationship building and knowledge sharing within total value chain and adversely impact crisis management

Critical communication Channels for Supply Chain during this crisis will be as below

• Engaging Suppliers & Logistics partners - Everybody in value chain is going through crisis and has limited resources at their disposal. Key differentiation for any supply chain is going to get the priority from their partners and this can be made possible by strong relationships & continuous dialogue. Business partners would like to know on business priorities and can also update on their challenges as well as ability to contribute so that activities can be planned for seamless execution
• Updating Sales & Business Development - Most difficult task is for customer facing teams as they need to assure customers on fulfillment of their requirements as well as continue to generate new business opportunities. If they understand disruptions in business, then they can apprise customers & customer priorities can be understood for optimum utilization of resources
• Aligning internal customers – Continuous update to internal functions can minimize lot of non-productive activities like downtime, changeovers, unwanted inventory & inefficient operations due to the disruptions. During discussion, user functions can update their preparedness and align their activities in line with business priorities as well as Supply Chain deliverable. This will also help in managing cash flow better which will be very crucial for sustenance of any organisation
• Channelizing team Intelligence & efforts - Most important aspect of Supply Chain communication will be with own team and ground force. Working within virtual teams and communicating from afar requires a different approach. It means new communication methodologies and techniques to be fully connected & to get the best out of each other, whilst improving organisational and personal performance.

Effective communication & information flow across all channels will help companies to respond swiftly and aggressively in collaboration with all stakeholders to counter each disruption while anticipating the next challenge.

Supply Chain community will have to adapt to this change and along with high levels of execution skills also need to develop skills which will make them perceptive, inclusive and communicative. Technological solutions & infrastructure can further facilitate the communication improvement.

This approach will also build greater responsiveness and resilience into supply chains to protect against future disruptions & managing future crisis much more effectively.

#CRISISMANAGEMENT #FIGHTAGAINSTCOVID #CORONAIMPACT #SUPPLYCHAIN #LOGISTICS #PROCUREMENT #PLANNING #COMMUNICATION #STAKEHOLDERENGAGEMENT #RESPONSIVENESS #DIGITALISATION

Everybody who is out today and putting his responsibilities ahead of his safety is Corona Warrior. I would like to thank & express gratitude to all Corona Warriors who are leading the fight against Covid-19 Pandemic and wish that we all recover from this crisis at earliest possible. Till then let’s be responsible in fulfilling our duties towards Nation, Organisation, Society & our family. Be Safe & encourage Safety.

Best Wishes,

Chandan Shirbhayye

A Proud Supply Chain Professional

https://www.dhirubhai.net/in/chandanshirbhayye