The year 2020 started with the Corona Pandemic, closing the world for months. It was an unpredictable situation for all business activities, the supply chain being no exception. The opening of firms after the Pandemic is facing other challenges like weather insurgencies and severe storm season.
Research by North Carolina State University and the American Institute of CPAs indicates that unprecedented risks are a new challenge for sectors like innovation, economic trends, and brand reputation. The findings reveal that about 80% of the big businesses have formed high powered committees to tackle the risks, where 20% view the risks as potential opportunities. Supply Chain risk management has now become a top priority in the list of business risks.
Political turmoil is marking the World map awkwardly. Gone are the days when First World was enjoying political stability. Be it the USA, Europe, or G-20, all are facing turbulence in their political systems. The political uncertainty is pushing them hard towards nationalistic policies. The policy shift tendency is forcing the businesses to re-frame their supply chain process. They need an agile approach to secure and streamline their supply chain networking, both globally and domestically.
Business means automation. Automation is vital for the survival and success of any business. Technology is a blessing but carries inherent risks such as data loss, cyberattack, and hacking. The artificial intelligence is also playing a significant role in managing an automated business. The mitigation of technology risks needs considerable investment in updations, security, and flawless functioning of systems and inventory management. Supply Chain Management has a dependence upon the smooth going of all related technical aspects of the business.
Brand loyalty is the product of the reputation of a brand or business. The increased interconnectivity poses a threat to the brand repute. Any little rumor getting viral can cause colossal damage to the brand repute. On the other side, it has become more imperative for the organizations to maintain inventory at a reasonable level for back up if demand rises due to a particular reason. Supply Chain management needs an ever improved functionality to meet the unforeseen challenges.
Rapidly increasing global heating is upsetting the weather patterns, which no more remain reliable. It has a severe effect on weather conditions. The unpredicted natural calamities play havoc with the supply chain schedules that need emergency readjustments.
Companies always face related monetary risks by the price hike. The partner can walk out of business without paying due credit, or products may not sell well. Such a scenario needs an uncalled for fundraising and stock management.
Employees are the company’s greatest asset and the most significant risk at the same time. From protecting against the challenge and retaining motivated talent, the process is cumbersome to undertake. The solution is to implement fair business practices, establish a culture of training, and win the workforce’s trust. Emotional intelligence and business training can help to make the company a model in the market.
An investment of time and money can help to safeguard against uncertainties. It is possible through expanding the supplier base and regrouping the supplier product combination. Keep an additional stock of finished products at various locations. The more you focus on positioning yourself, the better you will compete.