One of the challenges among the many that prevent an instantaneous re-start to an economy that has been artificially interrupted on a worldwide scale is maintaining (or indeed recreating) supply chains. This article in Forbes is an interesting overview of several retailers and how they have, and are, coping with that very issue. The gist of the piece is basically how to turn supply chain management into an advantage.
‘While we may not know when this crisis will be over or what the new normal will look like, the COVID-19 Pandemic has drastically changed how retail companies function. With technology playing an ever-increasing role in how businesses adapt, I asked Gina Claxton, General Manager U.S. Distribution Market, IBM for some perspective. “Supply chains have always been complex because of the involvement of so many parties and variables. But, they can also be a competitive advantage when organized effectively and infused with technology that remove traditional blind spots which were exacerbated in the past few months. The ability to share real-time information with partners and more accurately forecast demand is changing supply chains, enabling new business models and better business outcomes.” ‘
The article reviews three businesses associated with retails products or services. Not surprisingly, the use of data and analytics is high on the list of best practices for supply chains. The precipitous rise in e-commerce is also addressed. One executive said that his 80 year-old mother, who still has a flip phone, is ordering groceries online and that will not change after the pandemic. Being flexible to change how one does business is also critical. One characterization was interesting:
‘In describing how the company adapted to the pandemic, Tharp explained, “we are used to dealing with supply chain interruptions, like cyclones, political event, tariffs. We have a fairly agile supply chain. But COVID-19 was a bit different. COVID-19 was like having a hurricane hit the entire planet.’
The article is a good, quick read for those who have interest.
Overview by Steve Murphy, Director, Commercial and Enterprise Payments Advisory Service at Mercator Advisory Group