How to recover and better prepare supply chains from future crises
Logistics plays a vital role in almost all businesses like manufacturing, retailing, pharmaceuticals, and more, which is evident in the current Coronavirus 2019 (COVID-19) pandemic that has put countries in lockdown or quarantine.
A survey from the Institute of Supply Management, which assessed the short-term and long-term impact of the outbreak showed that transportation restrictions implemented by lockdowns and quarantines disrupted almost 75 percent of businesses’ supply chains.
This only further emphasizes the importance of supply chains in the economic recovery of the world. According to a report by Baker McKenzie and Oxford Economics, sectors hit the hardest by the pandemic will have the strongest recovery because of the demand and the ramped-up productions, but this will only happen if the supply chain is fixed.
“The post-lockdown will be a crucial time for logistics because it will not only recover for its recovery but also the recovery of other industries. That’s why for us to be able to do that we need to adapt to a new normal and seek better plans on how to run our supply chains,” JP Marzan Project Ventures Inc. Chairman Jay Marzan said.
It is quite obvious the importance of risk management for supply chains, however, because of the incredible disruptions created by the pandemic, supply chain leaders need to rethink the entire processes of their lines. Short-term priorities will be speed and responsiveness, but long-term priorities need to be consistent and methodical planning.
They should also start determining the critical components of their supply chains and have a clear idea which is high-risk areas and are lacking ready substitutes. These risks can be analyzed to assess the risk of interruption which then can be solved immediately.
For instance, automating physical processes and facilities will benefit workforce resiliency during a health crisis, like drivers can use a map route planner to reduce drive time, cut costs, and increase drivers’ productivity. This will also grant lesser risks of workers getting ill since they work more with digital technology making it less labor-intensive.
Speaking of digital technology, many supply chains are moving to a more data-driven enterprise that treats data as strategic assets for its processing. These enterprises have model organizations, processes, and technology that help their supply chains achieve speed, adaptability, and stability.
JP Marzan Project Ventures Inc., for example, has equipped themselves automated machines and other digital machines to make their supply chains faster and safer for their workers. They have begun to move to a more efficient and effective logistics planning for the future.
JP Marzan has always put it upon themselves to give their partnerships with its clients its utmost respect. Communication in supply chains is incredibly important to see that all parts of the process are doing well, especially during a health crisis like COVID-19 and after it.
Re-aligning and evaluating network models, locations, and service capabilities towards the new normal of a post-crisis to maintain the monitoring of operations, which can make it adaptable to whatever evolves in the industry.
These aspects can help improve estimating realistic end-consumer demands, since evaluating uncertainties that can happen during challenges like COVID-19 during short-term and medium-term demand planning is essential. Direct communication with clients and customers can become invaluable when it comes to preparing better supply chains.
“We have to become flexible, adaptive, and innovative in our approaches towards our supply chains. We hold a great responsibility in our hands that will incredibly impact our country’s economy and because of that we must become forward-thinking leaders providing only the best with our partners,” Marzan said.
JP Marzan Project Ventures Inc. is one of the leading logistics providers dedicated to meet the challenges of the globalized market and serves as a reliable partner for the country’s economic growth.
The company started in 1972 as RV Marzan Brokerage and used to handle customs brokerage and deliveries around Luzon. Since then, it started the separate logistics company, we know today and has established itself as a reputable logistics company consistent with the best business practices.
It has also expanded its services and catered to the needs of companies across the country. Among its services include heavy-lift support, trucking, forwarding, logistics, domestic distribution, warehousing, rigging works, plant transfer, factory machine installation, powerplant assembly, project consultation, equipment rental, civil engineering, and trading of industrial equipment and services.
To know more about JP Marzan Ventures, Inc., visit its website at www.jpmarzan.com.