Disruption – Not Necessity – Is the Mother of Supply Chain Improvement

May 26, 2020

5 min read

RESOURCES // BLOG

Perhaps you’ve heard the famous proverb: “Necessity is the mother of invention.” The saying becomes particularly popular when companies look for ways to overcome natural business barriers and deliver the products and services their customers demand.

However, the novel Coronavirus outbreak created major supply chain disruption which affects all companies and industries. In the interest of safety, a whole new set of rules govern how we do business. Some of those trends coming out of this include:

  • Rules on social distancing, mandating how many people can be in a space at a given time.
  • Truck and delivery driver safety suggestions for transporting goods from the warehouse to the end customer.
  • A spike in e-commerce orders and home deliveries across industries, including grocery and consumer packaged goods.

These changes have one thing in common: They all rely on a strong and resilient supply chain. Without a constant flow of inbound components and finished goods, they can’t go from origin to the warehouse, and then outbound to the end customer.

This is why it’s critical to master your supply chain now. Understanding where components come in, measuring key performance indicators, and cutting out waste is the only way companies can get the insight they need to drive future invention from supply chain disruption.

Excelling During a Period of Infrastructure-Led Disruption

When the novel Coronavirus began spreading in the United States, we saw a lot of supply chain disruption. The truth is we may not be done. A recent Gartner analysis suggests we could see three different scenarios play out as the country re-opens for business: a short-term disruption leading to a quick recovery, a long-term disruption leading to protracted recovery, or a resurgence of COVID-19 cases leading to one of the two other scenarios.

Because we don’t know which recovery to expect, your supply chain leaders need to understand infrastructure and operations weaknesses and opportunities now. There are many different ways to do this, including supply chain mapping and modeling, identifying new supply partners closer to your facility, and identifying the best transportation networks to achieve your customer service goals.

So why invest in technology and analytics today? Historically speaking, companies who invest in their processes and people during disruption experience a faster recovery than those who don’t. More importantly, a disruption allows you to view your operational plans candidly and determine how the combination of leadership and talent, technology, business mission and values, and process framework can improve your supply chain.

As we see from the Gartner figure above, infrastructure-led disruption can directly lead to new innovations within your supply chain and network plans, but only to the extent your talent drives them. Thus, disruption – not necessity – is truly the mother of invention.

Where Do We Start Driving Infrastructure-Led Disruption?

The first step to creating long-lasting change starts inside your company. Now is the perfect time to start having those conversations because leadership teams were talking about making lasting change well before COVID-19 became part of the common vernacular.

2019 survey of boards of directors by Gartner revealed those leaders anticipated a complete transformations of their infrastructure and operations by 2025, with the core goals being improving maturity, driving quality and creating more agile supply chains. The current situation gives leadership teams two options: either attempt to improve within the legacy framework, or use infrastructure-led disruption as an impetus to improve operations.

Trying to improve a legacy model may not work for several reasons. If you can’t answer these questions, any attempt to repair a broken system could create more problems:

Going through a supply network analysis will not only answer these three questions, but give you the analytics you need to make better customer-focused decisions. By going through the exercise and continually improving infrastructure and operations through regular analysis, your team can drive true cost savings and customer experience improvement, leading to improved service and earning more orders over time.

Start Your Infrastructure-Led Disruption Today

Your leaders don’t need to approach infrastructure-led disruption on their own. Transportation Insight has the tools and technology your team needs to drive innovation, combined with the insight into thousands of supply chains across industries. With our expertise, our teams can help you understand where your supply chain is falling short, and where you can drive improvement both through disruption and into recovery.

Our team works through the lens of your business perspective, helping you unlock value from your supply chain and creating efficiencies into the future. Contact us today, and let us help you use disruption a tool to drive long-lasting success.

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John Richardson

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