REVIEWS OF THE WORLD’S LEADING INSIGHTS

EDITION 4 | 2022

newsletter supply chain

IN THIS ISSUE

SUPPLY CHAIN STRATEGY THE IMPACT OF COVID 19 THE RUSSIA - UKRAINE CONFLICT
INFLATION BUILD AGILITY AND RESILIENCE IN THE END-TO-END SUPPLY CHAIN
PROCUREMENT POTENTIAL ECONOMIC HEADWINDS ADD STRESS TO SUPPLY CHAIN

ARTICLE OF THE MONTH: “Tectonic Shifts – Managing Supply Chains In An Age Of Upheaval” – KPMG

About this Report

The Monthly Supply Chain Essentials Review by Global Supply Chain
Group presents timely abstract reviews of the most relevant ‘open
published’ perspectives and research reports from the world’s
leading branded management consulting firms.

This publication ensures that executives and theirinternal
consultants are exposed to the widestrange of high-quality ideas,
techniques and methodologies developed across the management
consulting industryglobally.

Relevant insights are identified and classified once only, either in
a general category, or by topic alignment to an industry segment or
a functional area using our proprietary taxonomy.

Access to Full Reports

If you find a review of interest and wish to access the full
report, simply follow the link beneath the title. Where possible,
this will take you to the full report. Occasionally,the publisher
may require the user to complete a registration or payment
process prior to accessing the report.
Links are current at the time of publication.

Advertising & Co-Branding

GSCG prepares The Monthly Supply Chain Essentials Review for
its professionals and their clients as an aid to their career
effectiveness and development. Each month, it is sent to over
100,000 executives around the globe. It is also co-branded and
sent to thousands of executives belonging to leading professional
associations.

If your organization would benefit from redistributing, co-
branding, or appropriate exposure in The Monthly Supply Chain

Essentials Review then please contact Global Supply Chain
Group at [email protected]

Insight Sources

Global Supply Chain Group sources
candidate insights for review from the
best and most relevant material
published openly by (at least) the
following branded consulting firms:
• Accenture
• Maine Pointe
• Bain
• Capgemini
• Gartner
• Morgan Stanley
• Ernst & Young
• Zurich Insurance
• IBM
• KPMG
• McKinsey & Company
• PwC
• BCG
• JP Morgan
• US Bank

THE
MONTHLY
SUPPLY CHAIN
ESSENTIALS REVIEW

Message From the Editor,

The supply chain has been at the center stage of the global strategy world for the last two
years. Almost everybody touched on this topic has something to say about it. 

Not surprisingly, some of the best consulting companies in the world have a lot to say about
supply chains now. Some of the articles chosen for this edition are surprisingly good.
We have chosen nearly 16 of the best articles from various strong sources to review for
this edition. They form a solid knowledge base in practical supply chain management and
can guide the executives who choose to make the moves themselves.
It is tough to choose between similar articles, each with some good points.
For this reason, our article of the month is complicated to choose this month.
Yet, one article that captures this edition’s essence in its title is
Tectonic shifts – managing supply chains in an age of upheaval
by KPMG..
Heartiest congratulations to the team at KPMG for standing out in a crowded space with
an attention-grabbing title.
Several other very good articles with four or five-star ratings must be mentioned
here. Supply Chain Reset: A Different Reality Demands a Different Approach by
Bain & Co stands out with its strategic insights and concise message. For the
automotive and industrial sectors, Inflation, Supply Chain Snarls and the
incredible shrinking margin: What Do Manufacturers Do Now by PWC provides
a good study of on-the-ground reality.

Enjoy this month’s editions, and don’t forget to forward them to your colleagues and
teams. They can get their copies by registering for free.
Contact us if you want our perspective on any of these topics or anything else
related to your supply chain. After all, enhancing your supply chains has been our
sole mission since January 2000. And there are many ways we give effect to this
mission.

Vivek Sood
Global Editor
(Global Supply Chain Group)

Vivek Sood

Vivek Sood
Global Editor
(Global Supply Chain Group)

About
In January 2000, convinced about
the importance of supply chain
management, Vivek started the
boutique supply chain strategy and
governance firm Global Supply
Chain Group after a career in Booz
Allen & Hamilton in Sydney,
Australia.
Before his MBA, he spent more
than a decade rising from a
navigation cadet to a captain on
international ships working for
shipping companies based out of
Southampton, Miami, Monaco and
Mumbai. Uniquely, Vivek
combines a global strategic
perspective with a deep, hands-on
knowledge of supply chains.
Vivek’s clients range from
international number one in critical
industries to some of the most
innovative newcos. He continues
to add value to supply chain
governance and strategy globally
from his firm’s headquarters in
Sydney. He spends his spare time
writing supply chain books and
methodologies which are widely
adopted around the world.

THE
MONTHLY
SUPPLY CHAIN
ESSENTIALS REVIEW

SUPPLY CHAIN TOPICS COVERED

Supply Chain Strategy

Tectonic Shifts – Managing Supply Chains in An Age of UpheavalKPMG

Supply Chain Disruption: Build Agility and Resilience In The End-To-End Supply ChainGartner

Inflation, Disruption And Supply Chains: Decisions To Make Now –
Accenture

What’s Behind The Global Supply Chain Crisis? –
J.P. Morgan

Procurement

Responding To Inflation and Volatility: Time for Procurement to Lead – McKinsey

Procurement’s Twin Challenge: Managing Inflation and Supply Shortages –
Bain

Supply Chain Inflation

Supply Chain Reset: A Different Reality Demands a Different Approach – Bain

How Does Inflation Impact the Supply Chain? –
Zurich Insurance

Why Global Industrial Supply Chains Are Decoupling – Ernst & Young

Inflation Is Forcing B2B CEOs to Rethink Pricing –
BCG

How Supply Chain Constraints Contribute to Today’s Inflation –
US Bank

Supply Chain Operation

In Times of Stagflation, Calculated Growth Is Key to Success- IBM

Inflation, Supply Chain Snarls and The Incredible Shrinking Margin: What Do Manufacturers Do Now? –
PWC

Is Change Fatigue Affecting Your Supply Chain? –
Maine Pointe

The Great Supply Chain Shock –
Capgemini

Supply Chain Disruption: Will Delays Continue? – Morgan Stanley

About Global Supply Chain Group

Supply Chain Strategy

ARTICLE OF THE MONTH

“Tectonic Shifts – Managing Supply Chains in An Age of Upheaval” – KPMG

This piece by KPMG is useful for CEOs and business enthusiasts alike. It gives detailed analysis of pointers related to Supply Chain disruptions, which are covered in the following paragraphs. Supply chains are the joint number one risk on chief executive radars. Disruptions caused by the global COVID-19 pandemic created almost unprecedented challenges in the procurement, supply and distribution of goods and materials. 67 percent of CEOs will increase investment in disruption detection and innovation processes. The Ukraine crisis has put COVID-19 in a whole new perspective on what organizations must deal with.
Supply chains are still very fragile as we emerge into the recovery from the pandemic. Transportation issues – that were already a problem, are being exacerbated. KPMG warns of a possible period of stagflation – economic stagnation accompanied by rising prices: the worst of both worlds. It also talks of progressive movement away from what has arguably been a universalist, liberal order underpinning the world since the Cold War and a shift towards a more insular, interventionist approach where countries prize national security and domestic resilience over economic integration-free trade. Environmental risks, impacts, responsibilities, and opportunities are the fundamental building blocks in the supply chain. It brings home the point how the convergence of value preservation agendas with data science advances has led to a new supply chain discipline, predictive supply chain management and highlights how automated tools can also help your business remain compliant in a quickly changing regulatory environment. While in an inflationary world, it can also help businesses drive efficiencies and reduce costs. As the cost barriers have lowered, new marentrants have proliferated, offering comprehensive transformation platforms that integrate multiple supply chain technologies.
RATING: 9/10

“Supply Chain Disruption Build and Resilience in The End-to-End Supply Chain” - Gartner

Whether it originated abroad or right here at home, disruptions in the supply chain affect your customers, your company, and your supply chain. This piece by Gartner will delve into what “you” can do in times of crisis to mitigate these constant supply chain disruptions caused by both the external and internal factors. The Chief Supply Chain Officer (CSCO) can gain a lot from this article to transform the supply chain by not just following predictions enabled by innovative technology solutions and advanced analytics, but also understanding what exactly is the root cause of recent supply chain instability, and how to build a more agile and adaptive action plan to optimize supply chain costs and win through this recession.

RATING: 8/10

null

Supply Chain Strategy

“Inflation, Disruption and Supply Chains: Decisions to Make Now?” – Accenture

Here, Accenture has highlighted how the Inflationary environment is affecting the economic, social and political landscape. It talks about Yara, a Norwegian fertilizer company, which curtailed operations at two of its facilities due to the price of natural gas, and goes on to touch several following topics, for example how many food and beverage companies are facing huge increases in their cost of goods sold. The Consumer Price Index (CPI) for food commodities fell slightly in April but remained 29.8% higher than in April 2021. This was due to a rebound in economic activity, and continued strain from supply chain disruptions. Companies need to rethink their supply chain strategy to respond faster and smarter to this inflation- disruption cycle. Accenture suggests managers take quick actions to contain the impact of inflation, such as assessing their contractual exposure and targeting key elements of their sales or external spend that should be indexed or non-indexed. Identify dual suppliers, develop alternative logistical networks and create alternative designs for your products. Enhanced digital tools such as analytics, artificial intelligence and technologies such as control towers can help advance innovative solutions. Inflation and disruption are driving massive supply chain changes and to beat the inflation disruption cycle, the time is to act now.

RATING: 6/10

“What’s Behind the Global Supply Chain Crisis?” – J.P. Morgan

During the Covid-19 lockdowns, supply chain problems have arisen due to shifts in demand, labor shortages, and structural factors that affect the supply chain. It is now becoming obvious that the changing geopolitical the climate is creating a new set of risks and stress pockets. A number of industries are affected by this, including metals and mining, chemicals, automotive, semiconductors, and technology, to name a few. This J.P. Morgan Research examines these supply chain issues and what would be needed to resolve them, as well as looking ahead to potential future shortages and which sectors are likely to be affected.

RATING: 7/10

null

Procurement

“Responding to Inflation and Volatility: Time for Procurement to Lead”– McKinsey

This article by McKinsey focuses on how companies are navigating an uncertain market. It talks about how inflation, capacity constraints, and supply-chain disruptions are challenging traditional savings levers. To build on their success, they will want to take a broad set of actions across several time horizons. One of the most promising early-stage approaches is a procurement nerve center. A nerve center brings together specialists across the value chain to triage supply availability problems for raw materials, components, and related inputs. McKinsey presents insightful analysis of how procurement leaders have an opportunity to reinvent their function and broaden their mandates. A rather technical approach has been undertaken by the firm on the subject in question. Inflation can be assessed using index trends and futures, triangulating indexes if required. Tactics such as bundling separate purchases to enable volume discounts can create new saving opportunities. A more sophisticated approach creates an embedded-cost analysis for further illumination about what is driving prices.

RATING: 8/10

“Procurement’s Twin Challenge: Managing Inflation and Supply Shortages”– Bain

Bain underlines how inflation and supply shortages are puncturing earnings for some companies. It also focuses on the challenges that the procurement wing of these firms has to face in these volatile times. Leading companies ensure that their procurement organizations play a strategic role in creating transparency, revamping the firm’s sourcing strategies, and executing seamlessly. Good data on third-party spending alone won’t solve the problem. Procurement functions need traceability across the entire value chain. This allows them to forecast properly and mitigate supply availability issues. And, of course, improved transparency supports enterprise-wide environmental, social, and governance (ESG) efforts. Companies are making significant changes to their procurement systems, creating sustainable data visibility, and embedding predictive analytical tools. Leading procurement organizations are deploying more sophisticated sourcing techniques such as parametric pricing and index-based pricing. These advanced techniques that focus on big picture holistic value are essential to minimize inflation and scarcity impacts. Winning companies are realizing more value by
establishing cross-functional teams to “spend better” to compare overall costs. Procurement teams play a key role in ensuring alignment across all relevant functions, including supply chain, finance, and commercial operations. A clear and simple guideline helps to set the agenda at top procurement organizations. The dual challenge of inflation and supply insecurity presents a major opportunity for procurement organizations. CPOs, CFOs, and business leaders can help position the business to accelerate out of turbulence by asking a few questions. The answers to these questions will vary from company to company, but posing the questions is an important catalyst.

RATING: 8/10

null

Supply Chain Inflation

“Supply Chain Reset: A Different Reality Demands a Different Approach”– Bain

This article by Bain brings home the point that having the best product, technology, sales, marketing, and customer service doesn’t matter if your company doesn’t have a resilient supply chain. It emphasizes how disruptions from natural disasters, labor shortages, trade disputes, and other geopolitical issues showed the cracks in global supply chains. Most of these disruptions understandably caught leadership teams by surprise. A growing number of executives have decided they can no longer afford to get caught flat-footed.
Disruption is the new global reality, and companies that manage supply chains best will have a distinct competitive edge. Emerging leaders are working to transform them from global and lean to resilient, sustainable, and responsive. Succeeding will require a bold strategy and fearless execution. According to Bain, leading companies focus on the following four areas:
leadership, people, capabilities, and processes. At many companies, there can be limited communication between supply chain leaders and other stakeholders. Lack of direction can paralyze a team embarking on a multiyear redesign project. Most successful companies involve finance, R&D, regulatory, sustainability, and procurement. Making its products closer to customers would speed up delivery and shrink the carbon footprint. Transformational thinking can solve the problems that supply chains now face. However, it is pessimistic on Bain’s part to outrightly state that the perfect supply chain is likely unattainable. Further it highlights the importance of digital capabilities enabling companies to rebalance their supply chains toward resilience, sustainability, and responsiveness.

RATING: 7/10

“How does Inflation Impact the Supply Chain?” – Zurich Insurance

This write up by Zurich Insurance highlights how high inflation in the supply chain can cause a ripple effect on prices, causing supply chain costs to rise, which causes more inflation and increased prices. Supply chain enthusiasts, procurement managers and business leaders can equally benefit from this write up. Procurement managers respond to high inflation by placing orders promptly, trying to secure supply and
build inventory. Procurement has become more complex during inflationary periods, with fewer goods or services required by producers. Sales and Marketing Logistics teams need support from all stakeholders in the supply chain, including Warehousing and logistics. Inflationary pressure directly affects the supply chain. Inflation has increased the chances of a large bankruptcy in US trucking, according to Materials Modern Handling and The Bank of England had  projected inflation to return to its 2% target in around
two years. Persistent problems with port congestion and import containers are exacerbated by inflation and labor availability. Fuel prices are a huge factor in logistics as well, driving up transportation and freight costs. In times of increased uncertainty, it is important to take a whole organization approach to managing supply chain risks. Increased costs due to inflation tend to have a cumulative effect on the supply chain and if you have a business exposed to these increases then you want to quickly understand the impact and have response plans ready. Many economies display a level of dynamism in how they have approached recent crises and protected their most vulnerable communities. You can review your supply chain resilience, including the financial health of your critical suppliers with the consultancy services of Global Supply Chain Group. Supply chain managers should look for opportunities to help bolster their networks
and minimize as many disruptions as possible. The world has already displayed a tremendous amount of resilience, it has survived a global financial crisis in 2008 and Covid-19 in 2020. If you can strategically set up your supply chains to deal with any eventualities, then through proper planning and monitoring, organizations can adapt appropriately to upcoming changes.
RATING: 7/10

null

Supply Chain Inflation

“How Supply Chain Constraints Contribute to Today’s Inflation” – US Bank

This is an overview by the US Bank on inflation in the
US.
Inflation in the U.S., as measured by the Consumer
Price Index, rose by more than 9% in the 12 months
ended in June 2022. The rapid rise in the inflation rate
is a dominant concern for businesses, consumers, and
investors. It’s not just a domestic problem; recent
inflation spikes are a global phenomenon. The global
economy was brought to a virtual standstill by the
COVID-19 pandemic in early 2020. Pandemic-related
business interruptions limited production, leading to
scarce supply of desired goods. The impact on inflation
first became evident in early 2021. Since that time,
inflation pressures have intensified. China’s “zero
COVID” policy restricts production in manufacturing
facilities and the flow of goods through Chinese ports.
Production and shipping from other major
manufacturing countries may be tied to economic
expectations. Hainlin believes domestic supply
constraints are largely a function of labor shortages, as
unemployment is near historic lows. Russia’s invasion
of Ukraine has roiled energy and agricultural
commodity markets. Higher oil prices typically lead to a
slowdown in aggregate economic growth. African
nations are highly dependent on Ukrainian crop
production. The inability to ship products due to
Russian intervention in sea lanes contributed to higher
commodity prices. Inflation is a major contributor to
the rapid increase in the overall rate. The fluctuations
in the demand and supply of semiconductors have also
been brought to light in this write up. The Fed hiked
interest rates rapidly over the spring and summer of
2022. The Fed’s actions are designed to dampen
consumer demand, which will hopefully alleviate some
of the supply side pressures. Hainlin believes the Fed
will continue its rate hike policy until inflation numbers
improve.

RATING: 7/10

null

Supply Chain Inflation

“Why Global Industrial Supply Chains Are Decoupling” - Ernst & Young

EY Industrial Supply Chain Survey: EY deals with the question whether the modern, lean global supply chain is obsolete in today’s era or not. However, a major drawback of this survey is that it fails to consider the economic importance of major players like India. EY talks about how its Industrial companies rode the wave of globalization and established international supply chains to maximize production and cost efficiency and that it has been threatened by a confluence of external forces: large-scale global events, increasing protectionism and wage inflation in lower-cost
countries. This article explores these developments in four sections: – External forces are upending the industrial supply chain status quo – Rethinking global supply chain models
– Regions and sectors are taking different approaches
– Building the industrial supply chain of the future
Global trade in goods and services had exceeded US$22 trillion in 2021, a tenfold increase over the past 30 years, according to the
World Trade Organization (WTO) . The expansion of global supply chains fueled this explosion, together with major geopolitical developments that opened markets and sources of supply. 24% of respondents said their company’s operations or supply chains were disrupted over the past 24 months by new tariffs or other government-driven trade regulations or restrictions. Global supply chains also face risks from government policies encouraging domestic industries and impeding cross-border goods and capital flows. Added complexity and physical distance, combined with just-in-time inventory management, left global supply chains more vulnerable to external disruptions. These tactics proved extremely cost-effective but came with inevitable trade-offs. EY mentions how for years, wages in certain lower-cost countries have been rising faster than in other regions. In 2020, industrial companies
experienced surging labor cost growth in China. The trend in China is expected to continue for the foreseeable future as provinces increase their minimum wages. Some industrial companies operating in China have relocated production. Industrial leaders need to focus on key priorities to fundamentally transform their supply chains and prepare for the future.
RATING: 9/10

“Inflation is Forcing B2B CEOs to Rethink Pricing” – BCG

This article by BCG emphasizes how B2B inflation can be seen as an opportunity rather than a threat. Leaders of B2B companies are describing the current wave of input-cost inflation as the worst they’ve seen in 30 years. Most algorithms and pricing tools can’t account for such extreme price changes. Inflation has a swift, corrosive effect on the profits of companies that don’t manage it well. B2B inflation has catapulted the topic of pricing from the backroom to the
boardroom. Senior leaders are keenly aware that inflation has a swift, corrosive effect on the profits of companies that don’t manage it well. Instead of viewing inflation narrowly as a signal to raise prices, senior leaders should heed it as a wake-up call. B2B businesses must make the following
fundamental changes to deeply ingrained habits. They have an unprecedented opportunity to initiate long-overdue changes that will bring their pricing in line with best practices. B2B companies need to act faster, enforce
discipline and make nuanced price changes. BCG recommends that companies break away from these slower
planning cycles and change their prices as a function of the risks and opportunities they face. Targeted investments can create and preserve three key advantages based on information, strategy, and sales. Inflation is a hot topic right now, and input-cost pressures show no signs of abating as 2022 ends. Even when inflation ends, BCG doesn’t expect a return to the era of stability that guided previous decision
making on prices and emphasizes that companies will always need the ability to respond quickly, precisely, and confidently.
RATING: 8/10

null

Supply Chain Operations

“In Times of Stagflation, Calculated Growth is Key to Success”– IBM

IBM offers a statistically rich overview of the current inflation and its repercussions for the world and for different business sectors. However, a more in-depth analysis of the “calculated risk” it talks about in the beginning of the article, could have been presented.
Inflation dominates public discussion; many senior executives are preparing for an economic downturn with margin compression rates that have not been seen in over 40 years. Barron’s reports a falling profit margin in industrials, with CAT expected to fall to 13.4% from 15.3%. Year-on-year inflation in the OECD climbed to 10.3% in June 2022. Margin compressions will likely happen faster than any downturn in history as inflation merges with demand decline. In today’s
digital environment, advanced technology, data and AI will play a much bigger role in driving growth. Enterprises across all industries, including manufacturing, retail and financial services, increasingly identify as tech companies. Even during a period of stagflation, enterprises can apply technology to drive rapid and sustainable business growth. This can be achieved by striking a careful balance between cost optimization and growth through methods like: Pricing/bundling optimization and digital channel expansion. IOT, sensors and real-time analytics can optimize customer experiences and upsell services. Enterprises can benefit from an ecosystem of customer products and services (such as rewards programs) This becomes particularly powerful when combined with
other tech-enabled growth initiatives. For example, car manufacturers can use telemetry data to create “lock- in” with intelligent fleet management solutions, diagnostics, prognostics and analytics. Executing these
tech-enabled solutions can be challenging. Finding the talent needed to execute on these initiatives can be time consuming. Cost of technology programs can be
high, particularly in the current environment.

RATING: 7/10

“Inflation, Supply Chain Snarls and The Incredible Shrinking Margin: What Do Manufacturers Do Now?” – PWC

PWC presents a manufacturer’s point of view in this article. It talks about how stubborn price inflation; supply chain woes and labor costs and shortages have been putting the squeeze on many manufacturers. Input cost pressures are not expected to ease soon. According to a January 2022 PwC Pulse Survey, 68% of manufacturers agree that inflation is likely to remain elevated. Fewer than half of US manufacturers (43%) expect supply chain disruptions to ease by the end of 2022. Supply chain challenges are perceived to become a strong determinant of future growth. With manufacturers hit on multiple fronts, they’re looking well beyond the traditional cost containment playbook to preserve margins. It asks questions about the alignment of trading strategy with today’s price volatility. Some manufacturers clearly have more dynamic and agile cost structuring and pricing than others. Some will be able to hold down cost increases of, say, 5% before they need to pass through price increases, PWC mentions about the challenges related to acquiring human resource. Even before the pandemic, manufacturers struggled with acquiring and retaining talent. As with other sectors, the Great Resignation has exacerbated the challenge. As
manufacturers get a clearer idea of how input costs are affecting their margins, they’ll get a better understanding of any price increase of their product and service that they may need to pass through to customers. While future cost swings are unpredictable, it’s crucial to keep a transparent and open dialogue with customers to manage expectations and provide visibility. PWC could have presented a more holistic view of supply chain management as a whole concept but the article is a good read, if you wish to read it you can click on the link above.
RATING: 7/10

null

Supply Chain Operations

“Is Change Fatigue Affecting Your Supply Chain?” – Maine Pointe

Looking at today’s challenges for the industry, the team at SGS-Maine Pointe summarizes the essential problem in this volatile environment: to help CEOs drive performance, ensure customer commitments are met, and find a different playbook for strategic procurement. Change fatigue is characterized by apathy, finger pointing, confusion, and energy depletion. The team slides back into easy, familiar patterns. A company that is fighting change fatigue must find the root cause for any underperformance. Supply chain teams in the chemical industry have experienced tremendous pressure. As a result, the supply chain team and the company as a whole may begin to suffer from change fatigue. Change fatigue is characterized by apathy, finger pointing, confusion, and energy depletion. A company that is fighting change fatigue must find the root cause for any underperformance. Those patterns might not work but they also don’t require overwhelming mental and
physical effort. Pointe states the following reasons: inadequate or underused tools, equipment, and space, lack of key performance indicators (KPIs) leads to misunderstandings about products, consumers, or suppliers. Optimizing supplier relationships often requires introducing new go to-market techniques, holding conversations with suppliers well before any request for proposal, and increasing supplier options. Through Total Value Optimization, GSCG attacks the leading causes of change fatigue with insight into procurement, logistics, and operations challenges; pragmatic improvement plans; and measurable, collaborative change that bolsters your supply chain team. You can contact the team at GSCG for in depth information and although this piece by Pointe is rather small, you can read this article in detail click on the link above.

RATING: 6/10

“The Great Supply Chain Shock – Capgemini

The pandemic has left numerous supply chains across multiple sectors significantly disrupted. Organizations need to not only respond to the immediate crisis but also build long term resilience. Capgemini talks about the first two phases: Bringing supply chains back on track at the earliest opportunity and preparing for, and executing, the recovery. A command center (or war room) is a cross- functional crisis response team that closely monitors the fast-moving situation. Organizations need a detailed picture of where core suppliers are located and where their suppliers’ supply chains extend to key areas for consideration are prioritizing suppliers and logistics partners based on their importance to the supply chain. Finance and procurement teams should focus on improving cash flow management and working capital management as they look to stabilize supply chain operations. Organizations should look at measures that conserve the cash flow in these troubled times, such as delaying large capital expenditure and cutting down discretionary spending. Organizations should strive for a circular economy model and minimize waste. Creative pricing to dissuade hoarding can help stabilize demand. Renegotiate contracts to increase days payable outstanding for suppliers with strong financials, and not for those struggling with finances. An agile approach that flexes to the situation will be critical. Sales & Operations Planning must build a picture of future consumer demand by simulating several recovery scenarios. Organizations that have already digitized their supply chain are able to quickly respond to potential supply-chain breakdowns. The article persuades its audience to reorganize their supply chain in the short-term to deal with new constraints and mismatch, for instance: High-margin products or fast-moving products. Proactively communicate with customers about their recovery plans and timelines to reduce customer anxiety. Prepare a workforce reinforcement plan that allows to bring back employees in a phased manner. Businesses are likely to diversify and broaden their supply chains to become more resilient post-coronavirus, according to experts at the Harvard Business School. But this means that supply chain professionals need to be more hands-on with their networks and track even deeper into the supply chains. The next chapter will be to drive transformation through the digitization of supply chains, mapping supply networks and rethink supply chain strategy. For more personalized supply chain solutions proactively contact the professionals at Global Supply Chain Group. To know more click on the link above.
RATING: 7/10

null

Supply Chain Operations

“Supply Chain Disruption: Will Delays Continue”– Morgan Stanley

This article by Morgan Stanley underlines the most
important triggers of supply chain disruptions,
related risk factors and restructuring that is
needed. There has been a surge in demand for
physical goods, says Michael Zezas, Head of Public
Policy Research and Municipal Strategy for
Morgan Stanley. In its observation As demand
normalizes, so too should the production and
movement of physical goods. Analysts and
strategists identified 13 primary chokepoints
impacting companies today. However, the firm did
not elaborate on the choke points that it
mentioned in the article. It further talks about the
unprecedented surge in demand for goods that has
led to supply chain disruptions. Normalizing
consumer demand should take pressure off supply
chains, but transportation bottlenecks are an
ongoing issue. The combination of easing demand
and persistently higher transportation costs is
laying groundwork for a highly dislocated cycle.
Global Supply Chain Group, however, presents
doable and practical solutions to fortify supply
chains and If this article interests you then feel
free to click on the link to read it at length.

RATING: 7/10

Mission & Vision

Mission: We strengthen our clients’ profitability from within the supply chain. Your profits are under constant attack from your suppliers, competitors, customers, and many other directions.
Our mission is to identify and defend weak links in the supply chain and leverage the strong links to maximize profitability over extended periods of time.

Vision: To be the premier thought leadership institution in Supply Chain governance and strategy – working with the boards, CEOs, and our client teams to strengthen profitability of our clients’ corporations.

Confidentiality & Intellectual Property

Global Supply Chain Group does not wish to disclose its client identity alongside its project details, nor will it, without their express written authorization.
 
Global Supply Chain Group have the experience, openness, and time to understand the unique system dynamics underlying every supply chain.

Our unique 5 X 5 supply chain dynamics model helps pinpoint the exact root cause of the supply chain problem, and the level of project intervention required for protecting your profitability from supply chain attacks of your adversaries. Uniquely among the consulting companies, it aids in just the right level of intervention at the right element of each supply chain for every project.

Our clients include local, regional, and global organizations supply chain leading companies across almost every major industry and sub sector. Client references are available from board members, CEOs, C-suites, executives, and middle management who enthusiastically support our dedication to supply chain management with fit for purpose highly experienced teams working alongside client teams.

Further Information or Enquiries:

Global Supply Chain Group

Email [email protected] or visit our website at www.globalscgroup.com

newsletter supply chain

REVIEWS OF THE WORLD’S LEADING INSIGHTS

EDITION 4