What the Pandemic can Teach You: The Supply Chain Weaknesses

As a business owner, you’d want to know the weaknesses of your business so that you’ll know how to improve it. At this time where the world is going through the COVID-19 pandemic, many entrepreneurs have gained insights into such weak points in their businesses, especially in their supply chains. 

At present, every business owner is stepping up in order to protect the company as well as make the necessary preparations for the world post-COVID-19. Here are some of the steps that entrepreneurs can take during this time so that the business remains afloat and survives for the coming years. 

Creating a Worst-Case Plan for Sourcing

In modern management of supply chains, running lean is the norm. However, this pandemic has brought about challenges when it comes to what we’ve gotten used to as business owners. This pandemic is the stress test that can help businesses make adjustments and changes. 

Many companies are lean and efficient. They don’t find it necessary to overstock because they’ve made the best calculations. Nevertheless, what this pandemic is teaching us is that there needs to be a lot more capacity when it comes to “what if” scenarios. 

Supply chains shouldn’t be limited to what’s just needed at present but also for instances of “just in case.” Many businesses are now seeing this weakness in their system. With the geopolitical impact of the COVID-19, it is vital for companies to start rethinking their sourcing strategies because the world has changed drastically in such a short time.

SAP has actually opened the access to Ariba Discovery so that companies will be able to find alternatives to their supply sources. 

Preparing for Geopolitical Dangers

Businesses are not only facing the dangers of the pandemic. They also have to account for the timing of the COVID-19 emergence and the implications on the geopolitical dynamics. Companies are highly globalized, and the political outlooks of key players like the United States and China, among others, are significant. 

It’s possible that we’re now anticipating great changes in the world power order. THere’s going to be more disputes on trade because supply chains are going to localize. The new norm is going to be zero-sum strategies. Various countries are already deciding on who they will be aligning with. 

Collaborations and the Power of Working Together

With all the changes and challenges that COVID-19 has brought about all over the world, there’s still optimism to harness. The private sector has the ability to collaborate with the government in combating the effects of the pandemic. 

The power of working together is evident in the extraordinary and robust cross-border collaborations among businesses and governments. Governments are often faced with the challenge of not having the ability to move fast. But with collaborations among universities, institutions, and businesses, we’re seeing humanity fight back against the pandemic and find a cure. 

Such responses have gathered various talents all over the world. Human capital is more global now more than ever, and this is what we can bank on for the future.

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