For many companies, holiday season is the most important phase of the year – this time, however, it puts additional pressure on retailers and supply chains, as various industries have to deal with serious delivery delays and supply chain issues due to COVID-19. In addition to factory closures, stronger border controls and the accumulated traffic backlog, the fact that customers were spending more time at home also had a major impact on supply and demand.
For example, restricted flows of goods and reduced carrier capacities collided with the high demand for indispensable goods from the medical and food sector. At the same time, many warehouses were overstocked due to the lack of demand for consumer goods, while containers piled up in the ports. This led to the so-called bullwhip effect, which caused imbalances and fluctuations in demand. The consequence: In this year’s holiday season, not only home improvement and furniture stores, toy manufacturers or customer electronic centers are affected, but the procurement issues also mean that many Christmas gifts will not be available or will increase in price for end customers.
International Logistics
The importance of supply chains as well as the impact of globalisation on business has grown across all industries in recent years. Where decisions used to be made for the long term, markets were stable, and logistics had a rather subordinate status due to production on own facilities, this scenario has changed significantly. In an increasingly globalized world, networked production continues to take centre stage, while supply chains are confronted with disruptions such as the pandemic, extreme weather conditions or supply shortages. Global supply chains have thus become more susceptible to disruption than ever before.
Instead of minimizing the risk in the intermodal transport business through locally or nationally oriented supply chain strategies, companies should focus on digital transformation and innovative solutions. In this way, they can adapt their supply chains to new challenges in an agile and flexible manner.
Preventing Supply Chain Issues: Successful Supply Chain Management
To implement a future-oriented and sustainable supply chain management, supply chain managers should consider the following factors:
1. Transparent Supply Chains
It is mandatory to connect all supply chain participants and to guarantee them access to relevant information. Along the entire supply chain, vast amounts of structured and unstructured data are generated every day – for example from ERP and TMS systems, weather forecasts and traffic data, from various modalities or past transports. If this data is homogenized, evaluated and analyzed using AI-based solutions, companies benefit from the full potential of this information, optimize logistics processes and adapt more quickly to changing market requirements.
2. Supplier Evaluation
An assessment of current suppliers, contract manufacturers and logistics service providers is necessary to create a partner network that companies can rely on even in challenging times. A communication in real time allows the network to develop its full potential and respond to changes in supply and demand. This also benefits customers and their requirements.
3. Strategies for Risk Minimization and Inventory Optimization
The pandemic has exposed the weak points in global intermodal supply chains. Accordingly, alternative supply sources are required to significantly reduce the risk of disruptions. A stock optimization strategy is also useful to create a buffer if necessary.
4. Synchronize Planning and Execution
Planning processes are much more short-lived than they used to be. Where once a monthly planning cycle was the norm, planning is now a weekly or even daily task. This requires systems that allow companies to quickly simulate scenarios and replan based on changing market dynamics. Flexibility is also important to implement these changes quickly across manufacturing and logistics processes.
Transparent Supply Chains
A recent survey by Oracle shows the importance of building a transparent supply chain as well as improved planning processes: 84 percent of respondents said they would be more likely to buy from a company if it used artificial intelligence in managing its own supply chain. Another 73 percent would even pay a premium to ensure a smooth and timely delivery of goods. This shows that the expectation of manufacturing companies and logistics service providers continues to grow.
Synfioo’s solutions already support you in successfully facing these demands today:
- Optimize supply chain processes through data-driven analysis of your transportation operations
- Track your entire supply chain in real time on one platform
- Include all transportation modalities
- Access all arrival and departure data via the Synfioo Arrival Board
- Benefit from the smooth integration of location, delay and estimated time-of-arrival data into your IT infrastructure or access it directly via your web browser
- Ensure on-time deliveries even in tight time windows with precise ETAs
- React to disruptions at an early stage thanks to timely notifications
With the resulting knowledge boost, companies implement not only an integrated and transparent supply chain management, but also benefit from a successful holiday season without any supply chain issues.
