Building a Resilient Supply Chain
Many manufacturers are still struggling with the labor shortage, add in delays in raw materials and other supply chain issues, businesses can really take a hit with slowed down production lines. To offset these potential issues, a business needs to build a resilient supply chain.
The first crucial step in building a resilient supply chain is deploying your ERP system in the cloud. Once you have that, the next step is building out a strategy. There are a couple different strategies your organization should consider:
- Focus on Structural Resilience. The pandemic and other surprise issues can force a business into reactive decision-making. To help get your business out of that cycle, you need to build a strong structure for your supply chain. Key areas to focus on are modeling and testing. Simulate how your products and processes will need to change if your suppliers experience disruption. Improved data collection and analysis can improve the entire material flow up and down the supply chain. Developing “what if” scenarios promote data sharing among suppliers. It can help identify weakness and vulnerabilities, but it can also help develop end-to-end structural resilience and strengthens every link in the entire chain.
- Stay Agile with Advanced Analytics. A supply chain is a complex web of interactions, not just one single path. Because of its complexity, advanced analytics can provide your business with actionable insights. Modern supply chain resilience emerges out of AI capabilities like machine learning (ML), where data solutions move beyond descriptive analytics to predictive analytics. The ability of ML to spot patterns in massive datasets can make your forecasting more accurate and increase your confidence in planning and logistics. This strategy can help you remain agile, but processing data quickly and automatically.
- Weigh Long-Term Considerations. Having success one time or in one period, can tempt a business to grow indefinitely and can stress the supply chain. In building supply chain resilience, there is no magic solution, but you can get out ahead of the changes by leveraging tools that help you make the most informed decisions about how to create and manage success now and in the future. To appropriately build supply chain resilience, you must focus on long-term.
No matter what strategy you adopt, having visibility into your supply chain, can make you more confident about managing any situation that comes your way. If your organization needs help with this process, give 2W Tech a call today. We are a technology solutions provider specializing in solutions for the manufacturing industry.