Maintaining the efficient operation of all supply chain components ensures that the company can deliver products and services on time, especially in light of changing customer demands and supply chain disruptions caused by the COVID-19 pandemic.
“In the first half of 2021, the world was hit again by the second wave of COVID 19, and like the rest of the world, the tech industry equally suffered. However, the industry recovered post that and the latter half of 2021 espied a compelling revival of the technology sector in the country,”
says Milind Padole, MD at Affordable Robotic & Automation Ltd. (ARAPL). He further adds that the industry now appears to be back to pre-COVID level built-up. Although, again for the last few months there has been a sort of supply chain disruption for chips. The tech industry, like every other, is experiencing insufficiency due to supply-chain pipeline impediments with raw materials.
“Chip shortages may lead to the impeding of switches or routers, which can intercept the execution of a network installation. However, we are positive to end on a good note,” adds Milind Padole.
COVID-19 has had a significant impact on supply chains. Even as the disruptions continue, supply chains throughout the world have begun to pick up the pieces and map new terrain in order to recover.
Here are some of the most important supply chain trends to look out for in 2022.
Supply chain as a service
The supply chain, like everything else in the industry, is moving at a rapid speed, with everything being supplied “as a service.” Supply chain as a service (SCaaS) is a novel approach that allows businesses to achieve a four-to-five-fold return on investment by partnering with a single service provider to support all or part of their supply chain needs, such as procurement, manufacturing, production control, quality, warehousing, and logistics. It provides a virtual supply chain team, which is made possible by cloud software.
Supply chain as a service offers a strategic opportunity to collaborate with a company whose main goal is to improve the efficiency of each component of the supply chain. Individual segments can achieve innovation and competitive advantage by focusing their efforts and attention on asset management and inventory rotation. Companies can achieve cheaper and variable cost structures by leveraging established technologies and processes with the flexibility to scale immediately.
The traditional, linear supply chain has kept economies spinning for a long time, but a more profitable model is gaining traction: the circular supply chain. It promotes producers and retailers to repurpose scrap materials for resale.
The circular supply chain helps to differentiate brands while also bringing customers and small growers closer together. Small-scale suppliers are directly rewarded for their commitment to sustainability as a result of this process. The ultimate goal is to reduce environmental consequences by directing incentives toward a more inclusive economy.
Objectives and key results (OKR)
When it comes to operationalizing supply chain strategy, OKR can be very useful. Regardless of whether a company is embracing new trends and technologies, measuring what counts is critical to its success. OKR enables businesses to focus on the metrics that matter while eliminating those that have no bearing on supply chain performance.
As the pandemic unfolds, supply chain leaders should employ execution frameworks like OKR to ensure that business goals remain aligned with autonomous and linked supply chains. To leverage the dynamic insights generated by their supply chains, companies will need to invest in capabilities. They should also drive company ethics policies that specify acceptable commercial activities and operational boundaries. Simultaneously, the demand for talent should move to individuals who can comprehend supply chain dynamics, adapt to changing circumstances, and determine the best approach to leverage new technologies.