Source | theloadstar.com | Christian Wilhelm
For as long as I can remember, those working in supply chains have largely been focused on chipping away at operating costs. Even as just-in-time manufacturing has made businesses more vulnerable to delays in the supply chain, businesses have placed an unrelenting pressure on logistics teams to make savings.
Single-sourcing, consolidated carrier networks, tighter inventory management and limited contingency planning have all contributed to hidden costs in terms of risk exposure.
Almost overnight, everything changed as the crisis revealed the shortcomings of this approach. Those that were most exposed have seen disruption ripple through their supply chain and impact profit margins, revenues and customer retention. Meanwhile those companies that coped best were those that had embraced risk management planning. According to Capgemini, two-thirds of organisations now see the need for a significant shift in their supply chain strategies post-Covid.