How to manage the supply chain and procurement in challenging times
Immediate action is key to stabilize your supply chain and procurement activities during a global health and economic crisis. For those responsible for operations, the focus must lie on all activities with a positive impact on sourcing, supplier management, and material availability to reduce supply chain disruptions. These levers create positive effects on balancing supply and demandand on optimized inventory management along the entire value chain.
Essential levers – Actions to be taken by business leaders
The focus must be on speed, agility, and stabilization, which means:
- Get transparency on your supply chain risks by heat mapping
- Identify and manage critical suppliers - Shift production plan to available parts
- Monitor relevant developments
- Take immediate actions
Success factors for resetting the course
We can point out three main success factors:
- Consider both immediate actions to organize survival mode and mid-term actions to stabilize the supply chain based on critical suppliers, sourcing volumes, and logistic capacities.
- Create supply chain visibility to focus on relevant supply risks and shortages.
- Respond quickly to any critical supply situations.