Organizations have faced a slew of challenges in the past year, from material shortages to logistics bottlenecks and volatile swings in demand. More than 90% of Fortune 1000 companies say they’ve suffered supply chain disruptions, according to a report by accounting firm KPMG LLP.
Now, many businesses are reexamining their supply chains and looking for ways to increase efficiency, productivity and resilience.
Organizations have started to recover from the major disruptions due to the pandemic, but supply chain leaders have no intention of resorting back to their old ways with their supply chains lacking visibility and resilience.
In the second half of 2020, McKinsey & Co. surveyed 60 senior supply chain leaders from a variety of industries around the world. The survey asked how the pandemic impacted their operations and future strategies to make their supply chains more flexible and agile. Here are the responses:
Despite the negative impacts and disruptions, the pandemic has given enterprises an opportunity to revamp and vastly improve their supply chain. This is a direct result from the pandemic greatly magnifying the problems with many organizations’ supply chains resulting as a catalyst to implement the necessary changes.
It's important now to focus on the customer-centric, data-powered, digital technologies that many companies have been slow to adopt due to legacy system compatibility issues and fragmented efforts.
The future success of supply chains will depend on a strong, purpose-built strategy that encompasses several key areas:
It’s helpful to break down a supply chain’s external and internal components into focused improvement areas. To get started, here’s a comprehensive list.
Suppliers and Sourcing
Distribution and Logistics
Timely, incisive articles delivered directly to your inbox.