Why you might not be able to keep up with demand
Due to COVID-19, unprecedented circumstances continue to take place every single day. On top of the global pandemic, recent political events have added further strain on supply chains around the world. A primary example of this strain can be found in the form of truck driving. The number of active truck drivers is constantly diminishing. Due to the pandemic, approximately 1,100 trucking companies filed for bankruptcy. Although two years have passed since the start of the pandemic, the truck driving industry is still far from complete recovery. Furthermore, as a result of the tensions between Ukraine and Russia, gas prices have risen dramatically, affecting truck drivers as well as the general status of the economy. All the while, demand for products continues to increase.
Before you jump to regionalization
Regionalization is a proven strategy that works for increasing profit within companies by taking already existing networks of manufacturers and dividing them into smaller sites to increase overall outreach. However, in order to take full advantage of regionalization, a company must gain a clearer perspective on their already existing properties. Else, duplication of a flawed property can result in the same if not worse results making the entire process counterintuitive. So how does a company prevent this from occurring? In order to make sure regionalization goes smoothly, in-depth knowledge revolving around a company’s entire supply chain process is an absolute necessity.
Do you really know your supply chain?
Regardless of your position in the organization, having great visibility into your supply chain makes life easier. There is a good chance that you believe that you already understand the ins and outs of your supply chain. However, if you’re still experiencing an abundant amount of delays, then there has to be something missing. Right? As previously mentioned, COVID-19 alongside political events have negatively impacted companies financially. The increase in demand may look great on paper, however, in reality, the ability to keep up with demand is becoming more difficult because of shipping and manufacturing constraints. Having a good visibility and understanding of your supply chain could help streamline your operations, by quickly identifying alternate procurement or manufacturing options, when necessary.
How to plan ahead
In order to plan ahead, companies must have accurate data and computational systems that allow them to make smart predictions. For example, having insights into when you will run out of stock or which supplier on average delivers faster on Tuesdays can save a significant amount of time and money. With this kind of insight and heightened visibility, small, yet impactful adjustments can be made in order to boost the efficiency of a company. Moreover, with the use of easily accessible data, overall productivity will gradually increase.
The ability to quickly link causes to effects that occur in a company becomes much easier. Thus, new demand becomes more than manageable.
Where we come in
If you are still not sure which platform you should use to give you greater insight into your company, try Knosc. Knosc is recognized for providing accurate and in-depth details revolving around various industries. Supreme Resources has used Knosc and they are currently a 7-time Inc. 5000 Fastest Growing Company of the Year and a two-time External Business Partner of the Year for Procter & Gamble.
When companies use Knosc, they get the information they need to make those crucial decisions that determine when their products reach their customers. Delivering products on time will keep your customers happy and engaged.
Sources:
How COVID-19 impacted supply chains and what comes next | EY – US
Six Top Supply-Chain Strategies for 2020 | SupplyChainBrain
FACT SHEET: The Biden-Harris Administration Trucking Action Plan to Strengthen America’s Trucking Workforce | The White House
Trucking Bankruptcies Surged in 2020 as Pandemic Hit Small Carriers | Transport Topics (ttnews.com)
4 applications of big data in Supply Chain Management (bigdata-madesimple.com)
