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Industry Updates

How to Prepare Your Supply Chain for What Comes Next

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The pandemic exposed glaring weaknesses in supply chains. To prepare for the next disruption, organizations need to prepare now.

Alexander Jatscha, a communications manager for INFORM software, recently outlined 4 best practices in All Things Supply Chain to help you get your supply chain into fighting shape. They are:

  1. Turn affected people into stakeholders — “It is important that all departments relevant to supply chain management cooperate closely,” Jatscha wrote. “The prerequisite is a common platform so that the departments are not obliged to utilize different systems to display individual components of the supply chain.”
  2. Perform intelligent analyses — “In times of crisis, circumstances change particularly quickly,” he said. “Intelligent algorithms can quickly capture and analyse the data volumes generated in supply chains and logistics processes to perform recalculations for planning purposes. In this way, they greatly enhance the ability of supply chain managers to act.”
  3. Utilize simulation — Prepare for a variety of scenarios and determine which actions the organization might need to take for each.
  4. Encourage digitalization and automation — This could result in a competitive edge for your company.

Jatscha said organizations need to start planning for a post-COVID-19 world. “Above all, such a planning system must provide intelligent forecasts for optimal stock levels for the period after the crisis,” he said. “Typically, the planning of future sales and also the subsequent production and procurement strategy is based on past data. However, it is likely that sales data from 2020 will not provide a solid basis for calculations for 2021, due to the exceptional circumstances of this crisis. Planning systems must therefore be able to calculate sales forecasts based on reliable values.”

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