What is the Next Normal for Supply Chains?
The massive disruptions caused by the pandemic have been historic for the unprecedented effects it has had on supply chains worldwide. Much like society has adapted with facemasks and social distancing, a “new normal” has also emerged in logistics networks, transforming with the many curveballs COVID-19 threw at it. Like most radical changes, the term may sound scary, but this redefined supply chain model represents a far more flexible—and hopefully better—future for the industry.
What Exactly IS the “New Normal?”
Dealing with high intensity and demanding situations on a frequent basis is pretty normal for anyone who works in a supply chain. However, it shows how damaging the pandemic was when even seasoned leaders in the industry were left scrambling to get their operations back on track as soon as possible.
Both old and new methods were needed to inject life back into production lines and are what largely make up this “new normal” for supply chains. While they may not all stick past the aftermath of the pandemic, here are a few ways leaders have managed to keep afloat over the last two years:
Outsourcing and Dual Sourcing Outsourcing has certainly existed in the supply chain world well before the pandemic, but with the unpredictable nature of the world as of late, many companies are reconsidering their stances. With so much on their plate, it is often easier for smaller companies to outsource aspects of their supply chains—often referred to as Supply Chains as a Service—as a way to leave some of their workloads to industry professionals.
Dual sourcing has also proved to be a genius move to counter future uncertainties. Many companies have stuck with one single supplier for materials and components, which meant that many supply chains stopped dead in the water when disruptions hit in 2020. Establishing backup plans through having multiple suppliers can ensure that a single link cannot break your production chain.
Automation
One of the biggest hits businesses took from the pandemic was the sudden lack of employees working in person. With lockdowns and later social distancing introduced to help curb COVID-19, many production lines that required human interaction were left clueless at what to do.
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