Part 7 of "The New Supply Chain" blog series by Mike Loquercio, Vice President of Supply Chain at Greenleaf Foods.
Whether your industry is “back in the game” or not, we have seen several starts and stops across the overall playing field, especially the food and beverage markets given COVID19 impacts; your supply chain is different!
You might be fighting to rebuild inventories to improved DOS coverage given your perspective on COVID19 demand. You could be looking at options to rethink your approach to replenishment - shorter lead times, smaller lot sizes, inventory closer to the customer, and other creative solutions.
Your supply solution must work for the changing market conditions - and the landscape will change again over the next 12 months. The healthcare system will be undergoing a radical change with the approach to critical PPE, DOS coverage, buying group relationships, regional supplier networks, etc., and more than likely brand new regulatory and legal requirements.
Some of the challenges have not gone away – distributors and customers holding less inventory, future driver shortages, challenged freight markets by mode in COVID19 hot spots, they are just more critical as you consider your rebuilt supply chain.
At some point, inventory not on the shelf will not be acceptable to consumers, regardless of COVID19 impacts. Many companies have used this time to evaluate item profitability – does it make sense to continue to produce at current costs and margins? There are numerous examples of discontinuation across all markets.
Some companies are taking advantage of the available talent pool and upgrading rosters. As difficult as this might be to talk about – it’s time to evaluate your options and upgrade as you can. Your competitors are already down this path.
Speed to market has not gone away – either it’s your competitive advantage or you are trying to incorporate that solution into your supply chain. Data analytics, customer collaboration, and last mile freight are also other examples – got to be in your day to day lineup to play the game.
While baseball is talking about a short season, the supply chain should be in this for the long haul. You have already reacted to the short-term impacts and rebounded well. Don’t stop reinventing, redesigning, and pushing the envelope against tradition and status quo.
We are back in the game and it’s all about managing the roster and the lineup!
ICYMI:
Read part 1 of the series: The New Supply Chain: Pandemic
Read part 2 of the series: The New Supply Chain: Rebalance
Read part 3 of the series: The New Supply Chain: Reinvent
Read part 4 of the series: The New Supply Chain: Make a Difference
Read part 5 of the series: The New Supply Chain: Status Quo
Read part 6 of the series: The New Supply Chain: Spring Training
About the author
Mike has spent over 30 years in the food and food packaging space working as an engineer, operations and multi-plant manager along with supply chain and logistics roles. He has worked with CPG companies - Walmart, Target, and Costco along with food service, grocery processor and distribution accounts. He also has extensive order to cash business systems implementation experience with SAP/JDA. He is now the VP of Supply Chain for Greenleaf Food
Past Supply Chain Webinars:
Time to Rebuild: COVID-19 Supply Chain Wake-Up Call Webinar
Learn how reshoring can help to rebuild a shorter, more profitable and resilient supply chain for the future of your company.
Reinventing the Supply Chain Webinar
Learn a lesson from this current crisis and begin making fundamental changes now to prepare your supply chain for future shocks. This session highlights the ideal supply chain of 2030 and key questions to ask as you lead your transition from the current to a more collaborative and accurate supply chain plan. For steps you can take TODAY: Learn about the Supplier Scouting program from IMEC and the IMA, connecting suppliers with those in need of supplies.
Questions? Get in touch with IMEC.