April 11, 2024 at 10:00AM - April 11, 2024 at 11:00AM
A lean supply chain has long been the ultimate goal and gold standard. “Trim the fat”,
“reduce cost”, and “reduce waste” have been common sayings. The past few years
have highlighted that lean supply chains perform best with predictability. Minimal lead
time variability on raw components and finished goods has allowed companies to hold
less safety stock; moreover, sourcing departments rarely have updated supplier contact
information because it is easier to send a PO to a generic email. Prior years data could
be used to set forecasts for the next year, and use of data analytics provided improved
forecasts. This came to an abrupt halt in early 2020 when the pandemic arrived. What
was supposed to be a 14-day shutdown turned into months. This was followed by the
Suez Canal, the Russia-Ukraine war, and a return of pirates in the Red Sea. All of these
black swan events happened within a few years.
The increased instability due to the global black swan events had many companies
asking “when will it go back to normal?” The answer is that we have and continue to be
in unprecedented times; instability and unpredictability have become the new normal.
This constant unpredictability has placed immense pressure on supply chains.
Unfortunately, lean supply chains are both unreliable and lack resiliency; there is no
longer any cushion or room for error. Therefore, companies must adjust how their
supply chain’s function. This begs the question, what can be done to increase supply
chain resiliency and reliability? Attend this educational session to learn how to add and
increase resiliency in each supply chain component as well as for the entire supply
chain.