Rethinking Your Supply Chain in a Post – COVID 19 World

Rethinking Your Supply Chain in a Post – COVID 19 World

Every Supply Chain is distinct in its own way and the management of the organizations is transfixed to counter the altered future in innovative ways post – COVID pandemic. The interconnected global chains have suffered immensely during the pandemic. It is high time for the Supply Chain leaders to amend the way they look at their supply chains in order to build greater resiliency to forthcoming obstacles.

Construct Resilience:

It is crucial to obtain in-depth visibility into their own facilities, direct suppliers, and logistics partners as the organizations anticipate a speedy economic recovery post the pandemic. Having real-time detailed information at hand helps the companies be more resilient and make better-informed decisions to mitigate the costs of supply chain disruptions.

Key Factors for evaluating Near-shoring and Re-shoring:

Assessing near-shoring and re-shoring options is one of the integral parts to build enhanced resilience. Shippers are now compelled to re-evaluate their strategy and taking a comprehensive approach while the conventional approach was more focused on cost-savings. However, the expensive tariffs and the pandemic have proven the fact the there are other vital factors for shippers to consider when it comes to their supply chain. Minimizing the risk has become more important, leading the shippers to assort their supplier base to ensure they have a contingency place in place.

Revitalized interest in near-shoring is driven not just by the pandemic, but other factors such as the increased expense to ship from a distant source. For instance, shipping from Mexico is an enticing option for U.S. shippers from a cost point of view and also helps to control the supply chains more efficiently. The ability to expedite a shipment from a nearby location, compared to ship it from a distant one and wait for a longer time for it to arrive, or bear the cost of expensive air freight which has its own capacity issues, the benefit is clear and a lot of companies are looking to cash on it.

Tackle the E-commerce Challenge:

Users in the current situation are more inclined to e-commerce purchasing and their number has grown exponentially high during the pandemic. The challenge to deliver a product to the end-user is to choose the right carrier that interacts directly with the customer who is responsible to deliver a customer experience that is aligned with the brand. Failing to deliver on time, being unprofessional with the customer, falling short of expected services like installation, assembling and gathering the returnables will result in creating a negative impact which damages the brand loyalty.

Finding capacity in a close-knit market:

In addition to the existing challenges, shippers are currently dealing with, truckload volumes are potentially increasing and shippers are shielding themselves from inconsistent rates and tight capacity issues in highly volatile markets. Shippers are subjected to significant challenges on the available capacity to meet the requirement.