**London**: Companies are re-evaluating their supply chain strategies post-pandemic, with a survey revealing varying preparedness levels. Insights from Bosch highlight the importance of diverse task forces and proactive measures in addressing emerging challenges for successful transformation in operations and stakeholder relations.
The landscape of supply chain transformation has been brought to the forefront as companies navigate the complexities stemming from the pandemic and other unforeseen challenges. The need for an enhanced strategic vision has never been more crucial, especially for firms lagging in supply chain investments.
A recent examination by participants in the E2E Supply Chain Ecosystem Transformation Survey highlighted varying levels of preparedness among companies. Those with mature supply chains are progressing in their transformation efforts without significant hesitation. In contrast, businesses that neglected their supply chains over recent years find themselves grappling with the pressing need for change but lack clarity on where to commence their efforts, as per observations shared by experts in the field.
When the COVID-19 pandemic erupted in March 2020, Bosch, a leading technology firm, recognised the urgency of the situation and established a comprehensive supply chain task force. Bart Meers, who leads logistics and warehousing for the Bosch Group’s BSH Home Appliances division, coordinated the initiative focused on mitigating potential bottlenecks that could disrupt customer deliveries. “The first challenge in setting up such a task force is appointing the right people. Not just people from logistics, but also including people from purchasing, production and sales. Preferably generalists who have knowledge across all those three disciplines,” Meers stated when discussing the composition of the task force. His insights underline the importance of a diverse team well-versed in various aspects of the supply chain.
Equipping the team with appropriate tools and technologies presented another significant challenge. Meers elaborated on Bosch’s strategic advantages during the pandemic: “During the pandemic, we were in a better position than our competitors to proactively address bottlenecks. Partly because Bosch could use suppliers’ part numbers to quickly identify which customer orders would be affected by an impending parts shortage.” This foresight facilitated transparency in operations, allowing Bosch to create a “safe source of truth,” ensuring all stakeholders could access a consistent and reliable flow of information for sound decision-making.
The urgency of forming a task force often depends on the type of events faced by a company. Meers classifies these events into three categories: white, grey, and black swans. White swans refer to predictable events, such as Brexit or US elections, for which companies can prepare without the need for a task force. In contrast, grey swans represent sporadic occurrences that are plausible but not guaranteed, including pandemics or natural disasters. Black swans are unforeseen events that take everyone by surprise. Companies recognise the necessity of a task force in navigating these latter two categories, as their unpredictable nature can significantly impact supply operations.
Overall, the insights from the E2E Supply Chain Ecosystem Transformation Survey signal a clear need for companies to reassess and advance their supply chain strategies. As the demand for digital transformation escalates, maintaining robust supplier relationships emerges as a pivotal factor in steering organisational success, ultimately influencing revenue growth within the supply chain.
Source: Noah Wire Services
