The digital transformation of supply chains has been evolving since 2010, but COVID-19 has accelerated the process noticeably. The pandemic has shown clear disadvantages of almost complete dependence on only one supplier for certain categories of products and raw materials. Companies were not prepared for such challenges, which led to supply delays due to production closures. At the same time, the demand for some categories of goods fell sharply, while for others it unexpectedly increased. The latter include antiseptics, cleaning products, and toilet paper. Thus, the already completely unstable supply chain was broken by extremely unpredictable demand. The lack of complete and up-to-date data has knocked off the demand model. Including those that worked on the basis of artificial intelligence and machine learning.
Current steps
In response to volatile realities, companies are taking the following actions:
Diversification of suppliers. Companies are looking for alternative suppliers around the world, trying new approaches in production, trying to reduce the number of component parts in mechanisms and find replacements.
Investment in alternative materials and manufacturing processes. To reduce risk, companies interact with international suppliers, find potentially scarce components, and improve production and distribution. Everything to reduce risks in the supply chain.
The answer to the trade wars. International trade tensions have led to a shrinking supply chain. At the same time, suppliers who have had stable demand for many years are forced to look for new markets for trade. This trend complements the list of supply chain challenges: from production to final delivery.
The opening of an e-commerce channel is forcing logistics to change and complicate their processes. The transformation affects operations both within the warehouse and in the delivery service. For more efficient implementation or construction of e-com logistics, companies can start with “boxed” IT solutions, and further develop their systems as the business develops. For example, in such a strategy, you can pay attention to a starter package for automating a warehouse from https://unicsoft.com/blockchain-development/supply-chain/, designed to organize an online trade order fulfillment.
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