A balance between flexibility, resilience and cost efficient supply chain

In a restricted supply chain operation, the organization should identify, carefully analyze and ascertain the “real” need of the raw material /products etc. Short and medium term planning is advisable as long term strategic planning should only be done if the Supply Chain Managers properly foresee the future of markets. What to order, when to order and How much to order should be determined by MRP using the basic principles of procurement such as future demand, stock in hand with safety stock, on way stocks, lead times prevailing during pandemic, production delays if any, port congestion and possible delays, transport availability etc.

The top management of organizations should take control of the Supply Chain during the pandemic and needs to manage and control the supply chain at every stage or phase ensuring the smooth flow towards the end customer. Supply Chain Management is key to the success and increased performance of a supply chain. Companies looking to change their supply chains should consider how to integrate elements and practices around environmental protection, product sustainability and ethical business practices.

Radically changing an existing supply chain is not as easy as it may sound as creating a robust and secure supply chain will need to balance the demands for cost efficiency. At the same time, new logistics considerations may also have an impact on supply chains and the changes thereto. In the short and medium term, it is expected that companies will begin to search for more diversified supplier base while looking to develop a flexible and a resilient but cost efficient supply chain.

Source: http://island.lk/debottlenecking-the-strained-supply-chain-during-covid-19-pandemic-and-beyond/