Throughout COVID, many companies have struggled to handle disruptions and changes, particularly concerning the supply chain. Because the supply chain industry is vital to all product-driven businesses, neglecting to deal with supply disruptions may cause the company to experience long-term setbacks. Businesses must work to future-proof their supply chain, buffering it against unforeseen events large and small. Below are a few expert-recommended approaches for boosting the adaptability of your supply chain.
4 Tips for Future-Proofing Your Supply Chain
Focus on Agility
Some businesses aren’t sure if the supply chain they rely on can readily react to change or take on disruptions. Furthermore, some companies don’t know if they have adequate data to support firm decisions.
The conventional supply chain approach is cumbersome, and many supply chain managers are resistant to new methods. But given the complexity of modern supply chain networks, flexibility based on modern technology and methods is becoming mandatory to stay competitive.
Increasing adaptability should be at the forefront of your current supply chain objectives. This requires looking at new technology and fostering a culture of openness to change.
Have a Risk Management Strategy
If your company doesn’t already have one, it needs to develop a risk management strategy for its supply chain operations.
A risk management strategy starts by identifying preventable, strategic, and external risks. Preventable or internal risks are those risks that can and should be prevented, such as unauthorized actions or breakdowns in operational processes. Strategic risks are risks inherent to a company’s business strategy. External risks are mainly outside the company’s control.
A comprehensive risk management strategy addresses all three categories with prevention, mitigation, and contingency plans.
Build Strong Connections
A company’s most significant competitive edge is a robust supply chain that enables a leveraged production process, from procurement to manufacturing to shipping.
If your supply chain partners aren’t on board with your methods and technologies, your efforts to future-proof your supply chain will be minimal. Supply chain partners must be on the same page, or at least in the same ballpark. A future-proof supply chain requires integrating a digital ecosystem across the entire network.
Have a Tech Company Mentality
Given how much supply chain operations rely on technology, processes need to adopt a tech company mentality. Technology evolves quickly, and one-and-done software isn’t enough to protect a business from future disruptions.
Adopting a tech company mentality means focusing on employees who actually use the technology. If the implementation of new software doesn’t include a change management plan, it won’t be used to its fullest degree.
It’s also essential to invest in technology that will grow with the company instead of using stopgap solutions. Most times, a stopgap is outdated as soon as it is implemented. Many software platforms and third-party providers offer to update software as technology evolves.
We Can Help Your Company Handle the Challenges of Today and Tomorrow
At ZDA, we help our clients adjust their talent management strategies as market conditions shift. Don’t hesitate to get in touch with us today to find out how we can support your organization.