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The “Real” Resilience Of Supply Chains

We are sailing through the pandemic conditions and it is not always sunny, thunderstorms are dominant during most of the journey, health wise, economic wise, and systems wise. Although the global health impact is not over yet, we need to act on the global economic impact of the pandemic starting yesterday. A new era is opening, and we call it “the better normal”. The better normal requires a better supply chain setup.

The better normal is asking companies: “Are your supply chains really resilient?”

We are used to the words “cost” and “optimization” in the supply chain world. Up to today our main focus was how to minimize the cost and how to optimize our processes so that we stay competitive. After so many iterations of disruptions in the world arena, as we call it “the world in flux”, today we understand that we need to take a look at the resilience of our supply chains. Cost, optimization, globalization concepts are no more enough to stay in the game. Moreover, beyond the fact that they are not enough, it is now under the discussion that we may need to reconsider globalization of supply chains.

Many Companies Are Failed

Many companies are failed by their supply chains during the turbulent times of the pandemic. Especially food retailers, FMCG companies went through heavy stress tests and so many of these companies’ supply chains were crashed under huge strokes of unprecedented fluctuations of demand. Now is the time to ask the question: “Are we resilient enough to compete in the better normal?”

“The better Normal”s resilient supply chain will require digital superpowers, namely; speed, connectivity, intelligence and design.

Absolute flexibility on responding to demand fluctuation is the key. The magnitude of the fluctuation may differ so much that you have to adopt your response in a matter of hours. This requires that you needed to be integrated to your suppliers and they also are capable of meeting your requirements. Your supply chain needs to be free from errors of all kinds such as human, document and forecasting. How you can achieve this level is totally a new set of initiatives, which can provide you ultimate elasticity. As your digital maturity levels up your resilience will enhance accordingly.

The “intelligence” superpower of your supply chain can provide you insights how to better respond to fluctuations, you can enhance your intelligence to a level that you may proactively take actions to fluctuations coming ahead. When you reach upper levels of digital maturity, digital capabilities will enable you to predict the possible outcomes of weak signals coming from all over the world.

Together we can build the “better normal”, we just need to understand the new circumstances and change our supply chains to act in accordance with nature, people, technology and the new economic rules. Digitopia is the right partner to translate the new digital world, and the right mindset to create the better normal together with the great companies of our world.

THE BETTER NORMAL SERIES 
THE BETTER NORMAL #1: “THE BETTER NORMAL” WILL BE CREATED BY US
THE BETTER NORMAL #2: NO WAY OUT!
THE BETTER NORMAL #3: SYSTEMIC CHANGE OR NUDGE FOR THE BETTER NORMAL
THE BETTER NORMAL #4: A CRITICAL APPROACH TO DIGITAL
THE BETTER NORMAL #5: A CUSTOMER EXPERIENCE PERSPECTIVE
THE BETTER NORMAL #6: The “Real” Resilience Of Supply Chains
THE BETTER NORMAL #7: Aim For Digital Greatness 
THE BETTER NORMAL #8: The Balanced Vision
THE BETTER NORMAL #9The Better Normal: Operational Excellence
THE BETTER NORMAL #10DON’T CARRY “COVID-19 IMPACT” TOO FAR
THE BETTER NORMAL #11WORKPLACE OF THE BETTER NORMAL

 

About Digitopia:

We are trusted advisors to many great companies on their digital journeys. Our passion and focus help businesses succeed. Digitopia is an objective and independent management consulting firm driven by values and delivering tangible impact.