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Some Basic Questions About Supply Chain Answered

The supply chain is like a circulatory system for a business. It is the only way that facilitates the process of transformation of time, labour and raw materials into finished and market-ready products that consumers can buy. Although the processes involved are complex, putting the right strategy in place can help reduce costs and increase production speed. The key to developing an efficient and well-oiled supply chain machine is putting the right people in the right places. This begins with identifying the right talent and hiring them. Below are some key interview questions that will help you in your journey to build a strong supply chain team.

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The Just-In-Case Revolution

The just-in-time revolution of the ’80s brought demand-driven, agile, and lean processes to manufacturers. It resulted in over four decades of economic prosperity for the global manufacturing and distribution sectors. However, this success was based on many factors: reliable demand data, a strong buyer market, ample raw material, and dependable transportation. The world we live in today, however, has changed. Every day, we hear of supply chain disruptions, new consumer behavior, geo and political events that are changing the conditions under which supply chains operate. I see a new upheaval coming, the just-in-case revolution, where supply chain leaders must understand uncertainty better, build more options, sense and respond faster.

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US Gov Reports Progress in Resolving Supply Chain Issues

Outsourcing production to other countries where products such as clothes, computer chips, medicine and computer chips was once a simple thing to do. It led to value through design capabilities in other countries and low cost of production. Many businesses used inexpensive labour abroad to assemble products and global distributors who would manufacture and deliver materials for American firms. However, since the beginning of the COVID-19 pandemic, we have seen massive challenges in the supply chain, which have stressed the movement of products to unprecedented levels. With other challenges such as high levels of supplies coming to the US, geopolitical disruptions, the pandemic itself and the aging infrastructure, there have been unprecedented challenges in global markets, most of which are caused by disruption of supply routes.

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Build More Resilience into Your Supply Chain  

Risk management is one of the critical areas in supply chain and procurement. At the heart of this is the development of resilience of strategies to safeguard supply chains, ensuring business continuity. With the ongoing coronavirus pandemic, it is clear that the lack of a comprehensive resilience plan can lead to challenges of high magnitude for businesses. As such, it is crucial to have a plan that comes into play if a problem, such as a disaster, occurs. Supply chain resilience is the ability of a supply chain to prepare for and adapt to unexpected events. The resilience plan, therefore, leads to the adjustment of the company to sudden disruptive events that adversely affect the supply chain’s performance. To continue functioning during and after disruption, an organization needs a resilience plan that has the following characteristics:

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China's Heat Wave and Zero-Covid Policy Felt World Wide in the Supply Chain Industry

Jin Zhuanglong, China’s new Minister for Industry and Information Technology is creating a plan that (if successful) will stabilize the country’s supply chain as Chinese economic growth slows. It’s no secret that China has faced their share of supply chain woes over the past few years. It started with the Covid-19 pandemic in 2020 as many countries became frustrated with the manufacturing powerhouse as they were unable to keep up with the supply and demand of Personal Protective Equipment (PPE) like N95 masks and gloves.

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Planning Your Supply Chain Strategy

The beginning of a new year is always the start of new challenges. It can be not easy to know where you want to go and the efforts that you need to put in for success. In the supply chain, it is difficult to put things in order and start a new year on a high note considering the events of the end year. As such, you need to develop concrete plans that will help you out of the confusion you are in and assist you make better decisions. Here is how you can build a strategic plan to propel your supply chain strategy.

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Organizational Structures of Supply Chains Matter

The alignment of an organization is a crucial factor that organizations need to consider for success in their supply chain operations. When the right organizational model is matched to the business model, culture, operations, strategy and management, great benefits will be attained by the organization. The supply chain structure should highlight the groups, processes and functions needed to move products from production facilities to end users. Effective supply chain management is crucial in allowing an organization a competitive advantage, especially with high competition.

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Supply Chain Issues Bring Manufacturers Back to the US

The Covid 19 pandemic has changed the way we look at the supply chain industry. Prior to the pandemic many organizations headquartered in America opted to manufacture products overseas as both materials and labors were cheaper.

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Your Supply Chain May Just Recover This Year

In 2020 and 2021, supply chains reached their breaking point due to the pandemic. However, in 2022, there is some semblance of recovery as most services come to their pre-pandemic levels. Despite the challenging times in the past two years, there are many lessons that businesses can take from the occurrences. Businesses need to rethink their approaches to material sourcing and logistics. Businesses can capitalize on the problems they faced last year to ensure that their supply chains recover fully and are resilient enough to face the potential problems they encountered in the past year. This comes down to investing in artificial intelligence (AI), Machine Learning (ML) and automation, all of which are critical in the digitization of the supply chain and diversification of manufacturing.

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How Are You Dealing With These Supply Chain Trends?

COVID-19 has created a significant imbalance between the supply and demand of goods, affecting global supply chains. At the height of the pandemic and lockdowns, every part of the value chain was put under stress, from raw material sourcing to the end customer. Furthermore, areas like commercial, operational, financial and even organizational resilience were put under an unexpected test. The stress on the value chain during the COVID-19 period highlighted risks and gaps in the resilience of every company, including the bigger ones. As CEOs look to make things better to avoid large-scale disruptions in the future, some believe that innovation is the only route to resilience, while others believe that increasing investment in disruption detection will bear good fruits.

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