Should you be rethinking your supply chain strategy? Absolutely! There is so much volatility going on in the world that you must reevaluate your supply chain.
- Should you expand your supplier base? Yes, think about diversifying geographically, ensuring backup sources of supply, reevaluate if you have enough support in friendly countries.
- Should you reshore, nearshore, friendly-shore, and produce “for the region in the region?” – Yes, in most situations, positioning close to customers in regional clusters is the name of the game to service customers and proactively position your company for success.
- Should you move suppliers? Yes, in many situations, you must reevaluate whether your suppliers will meet your needs and your customers’ needs.
- Should you advance your use of technology? Yes, there is no doubt that only those companies investing in the appropriate technology to better serve customers’ needs, improve efficiencies, and innovating will thrive.
- Should you utilize big data/ business intelligence? Yes, sifting through the overload of data to what is meaningful, incorporating it into your strategy and taking action is key.
- Should you reevaluate your inventory strategy? Yes, this should be a continual review process. Cash will be critical as we navigate inflation, recession, disruption and more.
- Should you build capacity? Yes, there will be vast opportunity to expand market share as owners retire, companies merge, firms struggle, and those that have built flexible capacity will be able to ramp up rapidly and grow.
- Should you focus on energy? Yes, energy powers the supply chain.
- Should you focus on talent? Yes, there is no doubt only the companies with talent will be thinking ahead and ready to take advantage of the opportunities.
- Should you evaluate site selection & network optimization? Yes, there are significant changes occurring and your supply chain needs to get in front of them. Why not be the disrupter? It is no longer sufficient to be resilient as changes occur.
- Should you utilize a SIOP process? Yes, assuming you’d like to stay ahead of the curve with changing conditions and leapfrog your competition, you must rollout a SIOP process to align supply and demand and constantly engage your team with an operational rhythm.
Who Should You Engage?
The supply chain is a system of systems. You are only as strong as your weakest link.
- Your core suppliers and the next few tiers of core suppliers: Do you know who is in your end-to-end supply chain? Find out!
- Your go-forward customers: Don’t model your supply chain after a large volume customer you are losing money with on a consistent basis. Find your target customers.
- Your internal team: Involve key people in delivering a superior customer experience.
- Your colleagues: Collaborate with Finance, Sales and other key functions. Gain their input.
- Your technology partners: Utilizing the appropriate technologies will be critical, and so you need the “A” team to devise a path forward.
- Your trusted advisors: No client has the resources to accomplish objectives quickly enough. Leverage your trusted advisors (consultants, attorneys, CPAs, commercial bankers etc.). If you would like a referral, contact me.
Perform a quick assessment so that you know which moves will drive the most value for your customers and your business, engage your teams and TAKE ACTION. The next few years will not be for the faint of heart. Take control of your future.
Please keep us in the loop of your situation and how we can help your organization thrive during these times of volatility and disruption. There will be more winners created than at any other time than since emerging from the Great Depression. To gain additional ideas and insights on how to best navigate these volatile times and thrive, read our new eBook Thriving in 2022. Learning from Supply Chain Chaos. Download your complimentary copy.