What a difference a year makes! Just last year in our directory, we were talking about trends that were taking shape in a fast-moving economy. This year—and it happened in a matter of weeks—everything changed with Covid- 19.
We are living in challenging and difficult times. Virtually all of you have been or will beimpacted by this current crisis in some way. With all the dramatic changes, there is anopportunity to work together and make the world a better place.
The IWLA members highlighted in the directory are on the front lines, making sure that oursupply chain is up to the task of handling rapid changes. As a user of the directory, we wantyou to know that you can count on IWLA members to help you navigate the tumultuouswaters ahead.
Our industry’s landscape has shifted markedly in the past weeks. What follows is ourattempt to identify some of the key drivers that will shape our industry going forward.
1. Supply chain resiliency and risk mitigation: In light of recent events, supply chainleaders are likely to give more weight to the threat of pandemics—both new outbreaks andreoccurrences—in their risk planning. That could result in a wholesale redrawing of supply chain and distribution networks, as companies begin choosing plantand distribution locations based on considerations beyond simply finding the most cost-effective way to make and distribute products.
2. Labor and automation: Although the labor picture has changed in recent months, the automation debate hasn’t gone away. There are a couple of reasonsfor that. First, while the labor shortage may have eased, the relief will likely be only temporary. We are projecting that the labor market will pick up as we headout of the crisis and pent-up demand is unleashed. Second, we believe the Covid- 19 crisis will spur interest in fulfillment processes that require fewer touches(and thus, reduce the risk of transmission of viruses and other pathogens) and rely less heavily on humans, who can be sidelined by illness or quarantines. Forthese reasons, we believe automation and robotics will remain hot topics in the industry.
3. Flexibility: While the push for supply chain flexibility was already under way before the pandemic, Covid- 19 has only raised the pressure. As a result of thee-commerce explosion, companies were dealing with changing consumer patterns, shifts in demand, and changing product mixes. With the advent of Covid-19, the flexibility to adapt to market changes has become even more essential, both for the public good (think of medical equipment being manufactured bynon-medical manufacturers, for example) and for the survival of companies that must meet those fast-changing consumer demands.
4. Pressure to reduce costs while improving service: As consumers become increasingly reliant on e-commerce, there will be greater emphasis on bothdelivery reliability and order accuracy, particularly with pharmaceutical and health-care supplies. This requires a supply chain that is not only flexible but alsoresilient—that is, able to continue operating under even the most challenging conditions. At the same time, supply chain professionals will face ongoing pressure to keep distribution costs in check.
5. Revised priorities and metrics: Companies’ pain points have changed with the arrival of Covid- 19, creating a need for new analytical tools and metricsto help them gauge their performance and progress toward newly revised goals. One example is current cash flow versus future costs based on service levelsresulting from new demand patterns.
6. Hiring: Now is the time to hire! Yep, we said it. Slumping sales and shuttered operations have led to layoffs throughout the U.S., leaving even some industry“rock stars” looking for work. This has created an unprecedented opportunity for employers to snap up top supply chain talent.
Our industry is essential not only to corporate America but also to society at large. As we move forward with our planning, we must ask ourselves both what wecan do during the crisis and what we can do post-crisis.
We at AGiLE welcome your thoughts on the fast-changing marketplace and what all this means for the industry. We are here to serve your informational needsand make sure you have the latest thought leadership, metrics, and breaking news in logistics so your company can thrive in an uncertain world.
Gary MasterCOO, AGiLE Business Media
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