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.
While most businesses already have some kind of automation in their workplace, the pandemic will likely push companies to invest in this technology further. This does not mean that people will be completely phased out of the workplace, but tasks like data collection and entry can easily be accomplished through sensors and artificial intelligence.
E-Commerce
Although many businesses were damaged by the pandemic, none were hurt more than physical stores and malls. Thanks to months of lockdowns and later social distancing, their main channels of sales were completely cut off, causing irreparable harm.
On the flipside, E-commerce businesses have been thriving due to customers being stuck at home or too afraid to go out into public. Even though prices and delivery times are often higher, online stores have been blowing up more and more, showing no sign of stopping. While you may still feel more comfortable with a brick-and-mortar store, having an online store on top of that is absolutely essential in this day and age.
Digital Supply Chains
While all the areas listed above have proven helpful over the last few years, none represent the future of production compared to the digital supply chain. Bolstered by the combination of things like cloud computing, blockchain, and predictive analytics, a digital supply chain will provide real-time visibility to every aspect of your chain.
This allows you to respond to any possible disruption as quickly as possible thanks to data sent to you in real-time, so you have the opportunity to ultimately side-step any threat to your production line.
Katalyst Can Rebuild Your Supply Chain
Much like how new technology and concepts emerge, businesses should be questioning how efficient their status quo is. As tempting as it may be to return to the way things were handled pre-pandemic, the fact is that every industry, as well as the world, has been permanently changed, and these new methods provided by the “new normal” are the best way to put your best foot forward going into the future.
At Katalyst, we are well experienced in optimizing and assisting in the digital transformation of your supply chain. If you would like to know more about how our expert supply chain logistics team can help your business, feel free to contact us today, or click here to learn more about recent advancements in supply chains!
