Note: Today’s post is part of our “Editor’s Choice” series where we highlight recent posts published by our sponsors that provide supply chain insights and advice. This week’s blog comes from Oracle, and examines how the global supply chain responds to turmoil.
Disruptions can come in many sizes. From those smaller, everyday disruptions of machines going down, unexpected orders, suppliers missing, or shorting shipments – issues businesses deal with every day, every week, every month. To the medium disruptions such as new competitors like Dollar Shave club which has attained a $1B market cap in only a few years or the shut down of Sears which impacted brands like Kenmore and Craftsman. We also soon forget that only 6 months ago we were in a tariff and trade battle with China and needed to understand the net impact against margins and consider options. And of course, there are the big disruptions – those that have strategic and global impacts – like the 1978 Oil Crisis, the Tsunami in Japan, 9/11 and the financial crisis in 2008, and the current state of the supply chain now.
As recent events have put a huge spotlight on the global supply chain, they’ve also highlighted just how interdependent we all really are. Like never before, companies need to understand how to be resilient, manage risk, and respond to sudden and sharp changes in their global supply chain landscape. This is just a taste of what the “new normal” looks like. In fact, with so much volatility ahead, I like to say that “never normal is the new normal.”
These past couple of weeks, top analysts such as Deloitte and McKinsey have shared their perspectives on how companies can transition to the new normal or the “next normal”. We are all on the same page. Approaching this from a technology perspective, we’ve identified four key changes that global supply chains will need to be prepared for now and in the future. Let’s briefly look at each one and discuss strategies that companies can use to react, respond, and successfully navigate through these tough times.
To read the full article, click HERE.