Strategies for Readying Your Logistics Network for Future Catastrophes
In the ever-evolving landscape of business, organizations are increasingly recognizing the importance of data in shaping their supply chain strategies. Led by Bill FitzPatrick, the Group Senior Vice President and Global Industry Lead for Supply Chain & Logistics, companies are turning raw data into actionable insights to prepare for unpredictable crises.
To achieve this, organizations are reviewing external data for specific markets, focusing on patterns in hiring and retaining talent, wage rates, and reasons for resignations. This comprehensive analysis includes pre- and post-COVID-19 data, as well as data based on demographics that the organization is trying to attract and retain.
The conversation around human talent in the supply chain is expected to change in the next three to six months due to external forces such as elections, the war in Ukraine, inflation concerns, and technology advancements. In response, human capital is being prepared to support supply chain needs, with discussions focusing on the placement, frequency, and roles of assets.
Staffing agencies are presented with opportunities to re-skill and upskill workers to adapt to technology changes in the supply chain industry. Similarly, workers may need to be certified to use certain equipment in warehouses, and companies are considering reskilling and upskilling their workforce to incorporate technology.
Data is crucial in this process. It can be gathered internally and externally, and it's essential to organize and structure it effectively to ask relevant questions and consider time horizons. Companies should place inventory in the most heavily utilized areas to de-risk potential backlogs and have access to it on an as-needed basis. Strategically planning to move inventory closer to their end customers can also mitigate risks.
To effectively use data for decision-making, organizations can employ several key strategies. These include continuous tracking and analysis of key performance indicators (KPIs), integrating data across functions, evaluating supplier risk using predictive tools, balancing reactive and proactive metrics, treating inventory as contingency or insurance, conducting scenario planning using comprehensive real-world data, and building digital twins of supply chain networks and stress testing them at scale.
The C-Suite and overall supply chain leadership team should form a committee with data feeds from marketing and analytics. This committee should meet more frequently than monthly to analyze trends and make informed decisions. Teams should consider different scenarios for the C strategy, including moving from one supply chain to another, changing geographies, and rebuilding the supply chain from sourcing raw goods in-country.
The committee should also consider alternative plans (Plan B or C) for the supply chain, such as shifting from ocean freight to air freight and adding more suppliers to the network. If one situation occurs, companies should be able to pivot to another plan with minimal risk, such as shifting inventory from the west coast to the east coast.
Finally, companies should strategize a Plan A, B, and C for their supply chain, considering the current state and potential risks. This proactive approach, coupled with continuous analytics, benchmarking, and risk evaluation, can help organizations move from reactive crisis management towards proactive, resilient supply chain design and operation.
- To stay competitive in today's technology-driven world, many organizations are integrating data analysis into their general-news strategies, specifically focusing on supply chain and logistics, aiming to predict and adapt to lifestyle changes.
- In light of upcoming elections, the war in Ukraine, and advances in technology, staffing agencies are exploring reskilling and upskilling opportunities for workers, ensuring they are equipped with the necessary skills to handle changes in the lifestyle and technology sectors.
