Top 5 Supply Chain Strategies of 2021

It’s no secret that today’s Supply Chain has become more complex than ever, especially because of the pandemic that has affected major businesses across the globe by greatly affecting the Supply Chain networks.

As we look back and review the impact of COVID-19 on the flow of goods and services, we see how organizations and Supply Chain Management have responded to the changes. There are several observations, best practices and lessons learned from the previous year.

Many learnings from 2020 are worth exploring as they are likely to continue throughout the pandemic and even beyond. Manufacturers are looking to incorporate the learning into strengthening supply chain resilience. Here, we will know about the top 5 Supply Chain Strategies for 2021. Let’s have a look.

Global Supply Chains are here to stay:

 At the beginning of the pandemic, many voices were calling for the shortening of supply chains. But on the other hand, others were calling for the reshoring of products. This strategy is considered to be a viable solution. It is because there will be some shortening of supply chains moving forward. It is not realistic for us to expect that a vast global supply chain network will disappear. This has become obvious why the supply chain strategies have changed in this manner. 

Supply Chain Resilience VS Low-cost supply chain:

With the prospect of reshoring, many organizations have come up with new supply strategies to mitigate the impact of another disruption. This is apparent in the transformation of the strategy from a low-cost strategy to a resilience model.

Stalwarts of business planning showing cracks

Efficiency concepts like using lean initiatives and just-in-time delivery to manage inventory have become a go-to thing for many years. During the pandemic, these concepts have “hamstrung” many organizations bonding them to re-evaluate these strategies

Managing risk across the supply chain remains challenging

 Organizations should map their supply chain, to get an insight about their  suppliers and where key logistic hubs are located. Tthe pandemic has made more difficult than it sounds. Many organizations could only identify their Tier 1 suppliers. Organizations find it hard to foresee disruptions or even adequately identify mitigation strategies. This is because they had difficulty identifying the source of the disruption.

Adopt emerging technologies to ensure a reliable and predictable supply.

There are sometimes unexpected changes in the business. To deal with unexpected shifts in demand, business need a buffer.When demand accuracy is improved, it will help new technology to reduce inventory requirements and speed reaction times. This will also help in creating a nimbler and more reliable supply network.

With today’s condition, it’s essential to make the right decisions about where to source materials, make products, and deliver goods to minimize costs and ensure compliance.

One of the best ways to learn and master in the domain of Supply Chain Management and Logistics is by enrolling in courses that helps in enhancing skills and knowledge. The Advanced Programme in Supply Chain Management (APSCM) by IIM Calcutta. The course train the new age supply chain managers to flourish and survive through all the changes and challenges that take place in the business world.