COVID-19 has created problems in many industries where some of their skills have to be shaped while opening the door to a new world for the Supply Chain.
The emergence of e-commerce and the birth of the digital evolution have been recognized as key factors in shaping the future of the Supply Chain. But the pandemic has greatly accelerated this evolution.
Companies in various industries such as retail, consumer products, manufacturing and healthcare have recalled the vital role the inventory management plays in our business.
Many employers are now realizing that the Supply Chain flow is not as resilient or strategic as they thought. Flexibility is the result of four key supporting elements: strategy, organization, process and technology.
Even with the right strategy and process management, businesses that weaken the role of organizational and technology elements will face great difficulties as they struggle in today’s business world.
Experts underline that 30% of consumers will adapt to the new buying behavior, which will be a permanent change in the market.
The new supply chain era, accelerated by the pandemic and powered by the exciting advancement of technology, requires companies to rethink about their inventory management.
In today’s world, inventory management companies are at the center of the business process and are key players in managing the top and bottom line of the business.
Gone are the days when inventory management was seen as a support function for executing sales plans and overseeing logistics operations.
The key to success for business leaders in making the right decisions in the upcoming period is to acquire skills that will strengthen their business by always remaining agile.
Companies all over the world are evaluating supply-demand planning in three different stages to cope with this situation:
- Before COVID-19
- In the COVID-19 process
- After COVID-19
Like most countries, the COVID-19 phase has started in our country with the start of quarantine across Southeast Asia and Europe. During this period, companies were mostly dealing with supply issues, with producers and ports being closed and shipping stopped.
Companies that successfully survived the pre-COVID-19 stage:
- Evaluating which suppliers will be affected when and making a decision accordingly
- Quickly identify and prioritize group A products
- Determining the level of inventory required to operate until the end of the quarantine, knowing its current inventory
- Creating budgets with financial teams to secure supply
- They took actions such as moving their purchases to a later date and speeding up the process for containers still in ports.
But at this point, it was still very difficult to determine the extent of the crisis in companies. Quarantine is a surprise to many, but starting the New Year in this way has made the job of planners even more difficult. This situation caused difficulties in supply.
Due to the global impact of COVID-19, shipments have been interrupted regardless of the supplier’s location. This situation reminded companies the importance of having end-to-end Supply Chain visibility once again.
Moving the purchase date forward can be difficult for many companies, as it increases the amount of capital allocated to inventory.
Having enough working capital to remain agile while not purchasing large amounts to reduce the risk of idle stock has become even more difficult due to the interruption of shipments in this process.
Therefore, in order to make a balanced decision, it has become necessary for companies to contact inventory management companies in India.