In recent times, the landscape of supply chain management has undergone a significant transformation, emerging as a pivotal business function across various industries, particularly since the onset of the global pandemic in February 2020. Understanding the factors contributing to this shift is crucial in comprehending the evolving roles and responsibilities of supply chain managers.
The COVID-19 outbreak unleashed unprecedented disruptions, impacting both local and international supply chains. From March 2020 to the fall of 2021, the effects of this crisis persisted, leading to uncertainties, increased costs, supply delays, and operational challenges across multiple sectors.
This imbalance between demand and supply in global markets presented unparalleled hurdles for managers and operational personnel involved in diverse facets of the supply chain – encompassing procurement, manufacturing, logistics, warehousing, transportation, customer service, import/export, sales, and support services. Service providers, carriers, technology firms, distributors, and other key stakeholders were equally affected.
While historically relegated to a secondary role in many companies, the pandemic catapulted the significance of supply chain management to the forefront. The adverse implications of underperformance or failure in this domain highlighted its profound impact on a business’s profitability, growth, and sustainability.
The spotlight on this sector underscored the pivotal role of individuals in charge, referred to by various titles such as Supply Chain Managers, Procurement Leads, Logistics Coordinators, and others within organizational hierarchies. This increased attention and recognition signify a fundamental shift in the organizational dynamics toward acknowledging the critical importance of supply chain functions.
Throughout our consulting practice, we’ve observed a notable shift in engagement, with a substantial increase in interactions with CEOs within the last 20 months compared to the previous decade, emphasizing the heightened attention on supply chain issues at the highest echelons of companies.
The challenges faced by supply chain managers in navigating disruptions caused by the pandemic have necessitated an unparalleled level of resourcefulness and adaptability. Unlike past crises, such as natural disasters or economic downturns, the global scope and prolonged duration of the COVID-19 pandemic have introduced a unique set of challenges:
- Universal impact across countries, industries, and individuals
- Shift to remote work altering communication, teamwork, and productivity
- Unprecedented duration of the crisis, surpassing 20 months
- Complexity in demand planning and unpredictability in supply chain functions
- Reevaluation of established lean manufacturing and inventory management systems
- Adaptation and restructuring of business models to counter challenges
- Increased workload and risk of burnout among managers and staff
- Impediments in hiring and workforce management
- Ongoing pressure on margins, profits, growth, and sustainability
Despite these formidable challenges, organizations, in collaboration with supply chain managers, have actively sought innovative solutions to mitigate the pandemic’s impact. At Blue Tiger International, we’ve worked closely with supply chain professionals to develop and implement 14 solutions tailored to address these unprecedented challenges.
The role of a Pandemic Supply Chain Manager demands a departure from conventional approaches, requiring creative problem-solving and the exploration of uncharted territories. We at Blue Tiger International aim to supplement the resources of supply chain managers, offering a framework to evaluate and apply innovative solutions tailored to individual business models and supply chains.
Our approach entails a comprehensive four-step process, commencing with a thorough assessment of both domestic and global supply chains. This evaluation informs strategic solutions that are then subjected to rigorous financial scrutiny to define their return on investment (ROI).
Subsequently, an operational review identifies necessary modifications in the company’s supply chain and business model to align with the chosen solutions. Implementation involves collaborative efforts to execute these solutions effectively for the benefit of the business.
Amidst these challenges, we’ve witnessed a commendable response from supply chain personnel, showcasing resilience and adaptability in managing the requisite changes. While they may not entirely eradicate the issues, their efforts have been instrumental in devising strategies to safeguard market share, margins, and sustainability.
Supply chain managers have emerged as frontline heroes amidst this crisis, exhibiting unwavering dedication and deserve substantial recognition for their instrumental role in sustaining functional supply chains. This paradigm shift has elevated the profile and importance of supply chain management in the overall business models of companies. Senior management’s acknowledgment of their value marks a long-overdue recognition of their indispensable contributions to organizational success.
Get the latest supply chain report news insights at The Supply Chain Report. For international trade resources, visit ADAMftd.com.
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