The Supply Chain Industry was in the throes of multiple disruptions, with the lock downs forced on us by the pandemic, and the resultant steep variations in demand for goods. Most of the players in the supply chain domain were not ready for this disruption; the evidence was, and is, all around us. Sharp variations in demand for goods, resulted in: closure of manufacturing facilities rising cost of goods drop in availability of surface transport infrastructure drop in availability of skilled workers – truck operators and factory workers shipped goods, both consumer and parts meant for further manufacture and assembly, stuck aboard ships, for lack of adequate port infrastructure The impact: Demand forecasts gone awry Production schedules not adhered to Orders not delivered Rising costs and revenue loss Customers left disappointed Although there were abstract predictions about a virus that could cause a pandemic, by wise men, most companies did not perceive the predictions as serious. They did not expect that these disruptions could snow-ball into a major supply chain catastrophe. Complacency set in – the that-can’t-happen-to-me syndrome was voiced. But the supply chain bull-whip effect caught us unprepared. Variations in demand at the retail end of the supply chain, were accentuated and traveled up the chain towards the manufacturing end. Most companies failed to plan. They imagined that they could easily pull through, and be back to normal in no time. What practices can be adopt to mitigate the bull-whip effect: Diligently forecast demand Take into account lead times – time from order placement to delivery – while ordering Order less and more frequently – create a predictable routine Desist from conducting discount sales often Maintain prices – do not offer discounts on price. This too creates variation in demand The fundamental cause for the supply chain bull-whip effect is the lack of communication and flow of information. Now what? Here’s what we can do to make the supply chain “future-proof”: Plan – the activity that starts with analysis of the supply chain and proposing an appropriate system to plug the leaks, and lower stress in all the stakeholders along the chain Increase visibility – gather all available data and provide information and insights to decision makers Connect the silos. Establish real-time communications, including configurable alerts, among the various players in the supply chain, end to end Here’s where InnoBoon Technologies comes in to provide a one-stop supply chain planning and management solution – the Supply Chain Control Tower, along with prior consulting. What’s possible: End-to-end visibility of the entire supply chain A one-of-a-kind communications module that lets stakeholders and operators communicate in real time. Faster decisions contribute to dampening any rising bull-whip effect Clear, uncluttered, intuitive user interface that is easy to learn Initial consulting by experts provide optimum solution Support through the lifetime via easy maintenance contracts Get in touch.
Almost two-thirds (63%) of senior decision-makers working for large enterprises in the UK believe the current business disruption caused by a lack of access to or availability of raw materials or component parts in the supply chain will be resolved by the end of 2022. Â (source:Â https://www.logisticsit.com/articles/2022/08/16/large-uk-enterprises-in-denial-with-many-expecting-current-supply-chain-disruption-to-be-done-with-by-year-end) How are the large enterprises in the UK perceiving the supply chain disruption that reared its head during the pandemic? Let’s see what are the issues that have been with us for the past year or two. Non-availability: of raw materials and components, for manufacturing and assembly Shortage of supply chain skilled workers Shortage of infrastructure capability Lack of demand at the beginning of the lock downs, and demand spikes that surprised all at the end A survey shows that more than 60% of enterprises are hoping that this supply chain disruption will end by the time Christmas, 2022, rolls around. But, will it? More than 70% of the businesses surveyed are applying short-term measures, more like first aid, to mitigate this supply chain disruption. They are: sourcing more material from domestic suppliers increasing the number of suppliers keeping more stock in inventory These actions will keep the supply chain grinding along at severely lower efficiencies and will adversely impact the agility required for long-term sustainability and will add a myriad of complications to supply chain and logistics operations. While these enterprises are doing their best to address the supply chain issues, they are not being realistic about how long this supply chain disruption will last, and are responding with short-term fixes. The truth is that these supply chain disruptions will last for a long time, and future disruptions will appear at a faster, more accelerated pace, that would require enhanced agility and resilience. On the other hand, a few strategic thinkers have started enhancing their capability to withstand supply chain disruptions and improving supply chain management capabilities by adopting Technologies using data analytics and AI. Given the breakthroughs technology has brought in to help businesses with big data management, business intelligence, predictive analytics, and artificial intelligence, it is time all enterprises and SMEs in the logistics and supply chain domain look to moving onto intelligent technology platforms to derive maximum value from their existing capabilities and provide delightful experiences to their customers and end-users. We, at InnoBoon, have a one-point solution that is built on data analytics and AI technologies that is aimed at allowing businesses to tide over disruptions, and overall make it easy to manage the supply chain. The solution can be implemented and configured to fit the current model of all players in the supply chain and logistics space. InnoBoon also has acute Product Engineering capabilities to engineer and build bespoke solutions for managing logistics and the supply chain for all categories of stakeholders.