Supply Chain Management Resiliency
In early 2020, COVID-19 broke down existing concepts of modern supply chain management and forecasting models. As a result, manufacturers and suppliers struggled with labor shortages, transportation delays, price gouging, stockouts and the need for more availability of raw ingredients to make and deliver the goods. The term "supply chain" became a household name as many families scavenged in stores for toilet paper, baby formula and hand sanitizer, etc. Consequently, the pandemic forced many supply chain companies to reevaluate their overall strategy and upgrade internal systems to be more resilient. Supply chain resilience is the capacity to anticipate and react to any disruption in inventory flow.
Seven Principles of Supply Chain Management
In this eBook, "Seven Principles of Supply Chain Management," you will learn about seven principles with specific solutions and actions you can adopt to protect against supply and demand volatility.
Principle 1: Improve inventory visibility
Principle 2: Manage supply and demand as a flow
Principle 3: Adopt a fast, flexible pipeline planning system
Principle 4: Use real-time analytics to measure the volatility of demand
Principle 5: Improve forecasting models
Principle 6: Diversify suppliers
Principle 7: Create new distribution networks and channels
Consider it A Supply Pipeline Rather than a Supply Chain
In "Seven Principles of Supply Chain Management," the author suggests we consider the supply chain a supply pipeline instead. For example, COVID revealed the need for supply chain resiliency when consumers drained the normal stock and disrupted replenishment forecasts due to panic buying.
"Manufacturers make and supply goods using supermarkets’ forecasts, which are based on the consumption rates in their stores. So the manufacturers only buy raw materials to supply this rate. This meant that when supermarkets asked the manufacturers to turn on the taps harder, they did not have the raw materials needed to meet the unexpected demand. For example, manufacturers of hand sanitizer experienced severe shortages of raw ingredients and packaging.
The shortages quickly moved upstream as manufacturers requested more raw materials. The raw material suppliers weren’t expecting to produce more than the normal rate of supply and ran out. When you couple this with the distance the (mostly foreign) manufacturers are from the distribution centers, and how far they are from the stores, the problems multiplied again. The so-called supply chain was broken—or, as I prefer to think of it, the supply pipeline and all the reservoirs and pipes that fed it, were drained." (Page 6 - Seven Principles of Supply Chain Management)
Modern ERP Solutions to Improve SUPPLY CHAIN Resilience
While these principles will go a long way to helping improve your supply resilience, we also promote leveraging technology to streamline and automate workflows. We help companies leverage technology with modern enterprise resource planning (ERP) software. Implementing an adaptable and integrated ERP system will benefit a business by increasing production, decreasing operating costs, and improving customer satisfaction. Clients First Business Solutions helps streamline ERP solutions from supply chain issues to manufacturing. Clients First consultants have direct experience in the industries we support.
Microsoft Dynamics 365 Finance and Supply is a cloud-based ERP with multiple solutions for companies, like flexible programs for global finance departments, supply chain and manufacturing management. This software can meet a business's needs by connecting key employees and working with existing applications and systems for continuity and efficient workflow. Also, it takes little time on average for employees to adapt to Dynamics 365 programs.
You Can Rely on Our Microsoft Experts
The Clients First Texas office is known for its vertical expertise in manufacturing, job shops, maintenance, repair, and overhaul (MRO) for aviation or heavy equipment organizations. We support leading Cloud ERP solutions such as Dynamics 365 Business Central and Microsoft Dynamics 365 Finance and Supply. Our MRO solution, ProMRO, integrates with Microsoft Dynamics 365 Finance and Supply. We also have customers in other industries, including make-to-order/engineering job shops, project manufacturing, field services, and wholesale distribution. In addition, we have a deep knowledge of legacy ERP solutions like Dynamics AX (formerly Axapta) and Dynamics NAV (formerly Navision).
For more information, call us at 800-331-8382 or email. We're based in Dallas, Texas and service companies locally and worldwide.
Related Blogs:
Mitigate Supply Chain Impacts with Manufacturing ERP
The Total Economic Impact™ of Microsoft Dynamics 365 Supply Chain Management
Six Supply Chain Transformation Trends for Manufacturers