Unveiling the Critical Importance of Transparent Supply Chains!
Amid the ongoing Coronavirus pandemic, supply chain visibility has become vital!
Empty store shelves filled with essential items like toilet paper, food, and household goods highlighted the dire need for end-to-end visibility right from the get-go. People panicked, leading to mass purchasing, creating a chaotic situation globally.
As more countries enforced lockdowns, healthcare systems were strained because hospitals received inadequate resources - masks, personal protective equipment (PPE), ventilators - despite knowing the heightened demand. This glaring visibility gap caused concern, as projections for the increased demand weren't matched with broad knowledge of inventory.
"Supply chain visibility" and the "Digital Supply Chain" has taken center stage like never before!
Technology's got this game figured out...
Technology capable of providing end-to-end supply chain visibility has existed for quite a while. Solutions like Transportation Management Systems (TMS), Blockchain, the Internet of Things (IoT), Cloud Computing, Bar coding and RFID identification, GPS tracking, and more are all at our disposal.
Truth be told, most people are already hooked up, with smartphones, tablets, or computers tracking their daily habits. Take a moment and think about the last time you searched for something online, only to have advertisements pop up on your phone concerning that very topic. Or how you're offered store specials once you walk inside a retail outlet. Or how you track your online orders until it hits your doorstep.
The same visibility exists for goods. Transportation Management System (TMS) technology has long been utilized to track the movement of products in real-time. There are even companies offering their TMS for free! Electronic sensors, GPS, and online cameras can track products through manufacturing facilities, distribution centers, and retail channels.
While the widespread adoption varies by company and industry, the technology's available, and off-the-shelf solutions are flourishing, so companies no longer need to develop their software and support infrastructure from scratch. All this can be outsourced.
So, with all these tools at our disposal, how come we're still struggling to keep essential items stocked? Wouldn't improved visibility allow us to alert sources of supply as well as inform consumers about availability in real-time? If we had true electronic visibility, we would potentially curb both panic buying and stockouts.
What went wrong?
The absence of total supply chain visibility has been the root cause of the apparent shortages we've seen. Companies and governments, generally, have been slow to respond to sudden demand shifts and adjust supply lines accordingly.
As the Coronavirus pandemic surged exponentially across the globe, more people changed their tune, recognizing the severity of the situation. Shelves were left barren of food and a host of supply items. This buying activity wasn't a reflection of actual daily consumption but shifting buying patterns.
Stores were slow to react and establish buying limits because they failed to read the warning signs on the market. As shelves emptied of popular items like toilet paper, people panicked even more, triggering a buying frenzy for other products too. If stores had responded earlier, the predictable and adequate levels of supply would have kept shelves stocked.
Larger retailers may have electronic connectivity, tracking store sales at a sku level in real-time. However, they often lack electronic tracking of goods at their suppliers or in transit, limiting their visibility to the first tier supplier only. Smaller retailers usually lack any sophisticated visibility tools, making it impossible for them to gauge the availability of alternate suppliers they're not currently doing business with.
The same situation's happening in healthcare. Healthcare institutions are straining under the weight of the growing number of confirmed Coronavirus cases. Modelling indicates a lack of medical supplies and equipment to cope with the anticipated surge in cases.
It's the ad-hoc modelling and its projected outcomes that have highlighted the shortfalls. If we had full, real-time, end-to-end electronic visibility, then demand patterns and forecasts would have signaled suppliers (of all tiers) to ramp up production instantly.
Our healthcare professionals are already up against it; they shouldn't have to worry about whether they have the tools and equipment to protect themselves and their patients.
Conclusion
While full end-to-end supply chain visibility won't solve all the challenges faced in a pandemic, it would provide the fastest availability of information, allowing us to make quicker decisions and better handle supply and demand fluctuations. We need to embrace the foundation of the Digital Supply Chain of the future, end-to-end electronic visibility, and equip ourselves for the next disaster or pandemic.
It's a crucial Supply Chain lesson from the Coronavirus pandemic. Electronic Supply Chain visibility is mandatory for our most critical Supply Chains.
- The ongoing Coronavirus pandemic has underscored the importance of end-to-end supply chain visibility, as seen in the empty store shelves filled with essential items.
- Technology, such as Transportation Management Systems (TMS), Blockchain, IoT, Cloud Computing, Bar coding and RFID identification, GPS tracking, and more, offers solutions to provide this visibility.
- Companies and governments, overall, have been slow to adapt and adjust supply lines to sudden demand shifts, leading to apparent shortages.
- If stores had responded earlier to the changing market conditions, predictable and adequate levels of supply would have kept shelves stocked, potentially curbing both panic buying and stockouts.
- In healthcare, the growing number of confirmed Coronavirus cases is straining healthcare institutions, indicating a lack of medical supplies and equipment.
- Full, real-time, end-to-end electronic visibility would allow demand patterns and forecasts to signal suppliers to ramp up production instantly, ensuring healthcare professionals are equipped to protect themselves and their patients.
