The coronavirus (COVID-19) pandemic defined 2020 and brought the importance of the supply chain to light as a result of the many closures and shortages. Businesses are planning for an unpredictable 2021 as well and are looking to strengthen their supply chains to preemptively avoid further disruption.
Until recently, supply chains were largely a quiet business function, operating without much attention. But the frequent shortages and delays of 2020 brought on by the pandemic meant that, going forward, businesses need to reassess their current supply chains to ensure they support business growth and reduced financial risk.
The supply chain can represent about 80% of a company’s cost or more for capital intensive businesses. Supply chain management affects cash flow, growth and shareholder value. Businesses need to rethink their supply chains through end-to-end optimization, involving all aspects of the business at all points of the supplier ecosystem.
Businesses can become more resilient by understanding the “what if” scenarios that could cause future disruptions. To mitigate this risk and improve efficiencies within the supply chain, many businesses are accelerating their technology. Businesses can achieve visibility across the supply chain at all touchpoints; identify weaknesses, risks and inefficiencies; and then act using business forecasting, continuous intelligence software, real-time data and 5G for enhanced real-time visibility.
To survive and thrive in a disruptive economy, businesses must exercise resilience and agility, which can be gained through the latest supply chain technology. Contact Ollis/Akers/Arney Insurance & Business Advisors for additional supply chain management resources.
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