3 predictions on the future of the supply chain
Ask yourself: is it time to dance or is it ‘hammer time’?
As part of the CeMAT Supply Chain Pandemic Response Discussions series, Lora Cecere, founder of Supply Chain Insights made some bold predictions about the lasting ramifications of this pandemic on the supply chain.
You can access the full webinar recording to find out her views on what agility will look like, sensing demand, supplier relationships and bidding good riddance to certain technologies.
Here are 3 of her key predictions:
1. Supply chain patterns will be determined by ‘the hammer and the dance’
A year from now we will still be living according to the COVID 19 pandemic. Infection rates will drop and so restrictions will relax and people will socially interact more (i.e. dance). This will be followed by another wave of rising cases of the virus, resulting in reintroduction of restrictions (ie. the hammer will fall). And repeat. Each time restrictions are relaxed and reinstated, buying trends will change and companies in the supply chain will become very good at adapting quickly to either scenario.
2. Methods of demand prediction will change
The traditional definition of demand will go out the window. True demand is defined by consumption. Empty shelves and how long they are empty is currently a true indication of demand. Previous methods of demand planning and collaborative forecasting based on past trends are now obsolete.
Current and real time consumption data is more important than ever – current demand prediction involves evaluating data on the last 30-days of shipments or shipments during conditions similar to COVID 19 activity. Promisingly there are a number of data scientists developing new forms of analytics to provide this kind of modelling.
3. Supplier relationships are crucial
A third of companies have supplier development programs – and building these relationships should be a key take away from the pandemic.
- Helping the supplier should be a focus. Start with identifying where the supplier is located and map lead times.
- Make sharing information across the supply chain a priority. Aim to align manufacturing, supply and logistics as a synchronised – rather than integrated - supply chain.
- Don’t take logistics for granted.
Hear Laura expand on these predictions: