Supply chain management: limitations of the global model in the face of the health crisis

The health crisis has had a major impact on the smooth running of supply chains for many companies around the world. To remain operational, industry players have been forced to adopt new strategies and revisit their entire supply chain management.  

What is supply chain management?

Supply chain management (SCM) refers to the supervision of all stages of a company's supply cycle, from the purchase of raw materials to the delivery of the product or service to the end consumer (including manufacturing, distribution, etc.). This function implies the management of different flows (product and material flows, information flows, financial flows, etc.), the management of resources, and the management of financial, human, and technical means. Supply chain management is therefore particularly complex and involves a vast number of players (suppliers, carriers, producers, information systems managers, logistics managers, etc.). The supply chain manager must notably supervise:

• The coordination of the routing of goods
• Stock management and optimisation
• The respect of manufacturing standards
• Negotiations with subcontractors
• Sales forecasts
• Financial reporting
• Order management
• Quality control
• Production and delivery time management
• Cost management
• Information management
• Performance analysis.

Customer satisfaction, business profitability and the competitive advantage of a company are all stakes associated with supply chain management.  

Supply chain management: the limits of the traditional model further to the health crisis

Since the beginning of the health crisis two years ago, the retail and consumer goods industries have been facing major upheavals that have forced them to revisit their entire business model. The Covid-19 pandemic, which brought many sectors to a standstill for weeks or even months on end, has had direct consequences on the supply chain of many companies. For example:

• Routing problems
• Lack of goods and supply difficulties
• Interruption of deliveries
• Malfunctions among suppliers and other stakeholders
• Shortages of certain components or raw materials
• Reduced staffing levels
• Economic repercussions and reduced financial resources
• Changes in demand, needs and consumer habits.

Whether at the human, financial, organisational or logistical level, the health crisis has had a considerable impact on the supply chain of many manufacturers. The pandemic has also revealed the fragility of the traditional model, and highlighted a number of flaws such as a lack of adaptability and flexibility in processes, operating in silos, difficulty in accessing data, etc. Many companies are now questioning their systems and taking corrective action to make them more resilient and flexible in the face of external hazards. These include:

• Improved tools and software
• Better risk management
• Optimisation of flows
• More connectivity between the various players
• Decompartmentalization of information
• Modernisation of processes
• Improved digital presence
• Digital transformation
• Development of e-commerce
• Reorganisation of supply, production and distribution cycles
• Innovation with regard to crisis management.

 

Improve your supply chain management: WAYDEN can help

If you are looking to gain some perspective and create an SCM model aligned with today's challenges, a highly strategic solution is to hire an external expert, such as an interim supply chain manager. At WAYDEN, we have a network of over 8,000 highly qualified managers with 15 to 25 years of experience in senior positions. We select the manager whose profile, skills and qualities are the perfect match for your needs and expectations. With exceptional leadership skills, our interim manager is operational as soon as they arrive in your company. They can identify weaknesses, activate the right performance levers, train teams and bring the necessary innovation to rebuild efficient supply chain management, adapted to the challenges of today’s and tomorrow's world.