SUPPLY CHAIN
Headache : Global Supply Chains In Hyper-Uncertain Times
By Michael Nzule
Headache , Full Stop .
In a world that is ever changing , I choose to define the current business trends as a Headache . You see , the pains come in different intensities . The reaction to the pain determines whether the cure is just a band aid ; sustainable or preventive in nature .
Disruption is a real headache . It brings discomfort . Discomfort can determine levels of comfort … it is contradictory , but true . When one is comfortable , or too comfortable , they should clearly be preparing for some discomfort sometime , unpredicted , and their time for a pain point . The real headache . Managing in hyperchanging times for corporate leadership teams is their headache , which I choose to explore , and relate it closely to the logistics world - post Covid-19 .
In post Covid-19 times , more than ever , the logistics ecosystems are challenged to the core . The logistics strategy must now create room for uncertainty and disruption - a lesson from Covid . Every professional , in the total logistics chain , must create flexibilities and alternatives , that support the final goal of delivering cargo , as and where and when required , for the person who requires it . This takes into consideration all the attendant services and regulatory compliance requirements , like customs and clearance , being as efficient as possible . Globally , the flow of cargo enables production and delivery of finished goods to consumers . Any disruption to this is somebody ’ s headache .
Disruption has tested the very existence of lives , and seen deterioration of the quality of lives too . The movement of cargo either on multimodal transport systems , sea , air , rail or road , impacts the availability of cargo . Availability is enabled by freight forwarding , warehousing capabilities to improve challenges on achieving multi-locational manufacturing . The key challenge now , is to balance and manage working capital financing to avoid unnecessary stock holding as systems such as just-in-time concepts get reworked .
These systems ( e . g . JIT manufacturing ) have been tested , and questions of their validity during times of global restrictions put on to scale . How then , do we create safety nets for the unforeseen turbulence ?
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Disruption is a real headache . It brings discomfort . Discomfort can determine levels of comfort … it is contradictory , but true . When one is comfortable , or too comfortable , they should clearly be preparing for some discomfort sometime , unpredicted , and their time for a pain point .
The turbulence also may imply that redundancies and losses arising from slow moving goods become so real as well . Global supply chain visibility for sourcing and in-bound and out-bound logistics then becomes more strategic in managing these uncertainties . This is another form of headache and possibly pounding as a migraine to the supply chain professionals … and not just the musings of the writer .
Then there comes in technology . This is a fundamental enabler for tracing , managing quality of cargo , speed of movement , delivery times , stock holding levels and turnarounds too . The global supply chains must now more than ever , provide visibility and traceability in real times . Cargo parameters like quality , location , expected times of arrivals , and any alternative re-routing options available in the event of unforeseen route closures or route unavailability , are key in managing uncertain global cargo movements .
In addition to this , technology solutions have to be deployed in managing and modeling complex customer behavior and trends ( e . g block chain ), that can predict what will be ordered , when , how and for what purpose . This can be extended to post purchase support to customers and consumers .
The logistics industry has been forced into new trends , in managing post Covid times . The trends expected include more partnerships among industry services providers . The driver of this trend being the ability to remove the challenge of location , for end-to-end service delivery . It is anticipated that logistics service providers will enhance virtual communities as the norm in doing business . This must of essence include regulators , e . g . government agencies - who can facilitate or provide bottlenecks in the cargo movement . Such
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