--- title: Post-COVID Supply Chain Planning - steps to take now! description: Does your company have the ability to adapt new scenarios? image: https://blog.prophetic-technology.com/hubfs/bruno-cervera-W3IXtchd1pE-unsplash.jpg --- [hello@psdtohubspot.com](mailTo:hello@psdtohubspot.com) [+91 8874569874](tel:+91%208874569874) Hours : Opens 10:00 AM To 07:00 PM [![logoHD](https://blog.prophetic-technology.com/hs-fs/hubfs/logoHD.jpg?width=2500&name=logoHD.jpg "logoHD")](https://www.prophetic-technology.com/) - [Home](https://www.prophetic-technology.com/home) - [Subscribe](https://www.prophetic-technology.com/pt-blog-subscribe-opt-in-consent?hsCtaTracking=174cc371-9cdc-4b94-a32e-9007f0ac4dea%7C0776642c-2604-4695-8e3f-f7a74f10031a) - [Contact Us](https://www.prophetic-technology.com/contact-us-old) - [supply chain](https://blog.prophetic-technology.com/topic/supply-chain) - [risk](https://blog.prophetic-technology.com/topic/risk) - [covid](https://blog.prophetic-technology.com/topic/covid) # [Post-COVID Supply Chain Planning - steps to take now!](https://blog.prophetic-technology.com/post-covid-supply-chain-planning-steps-to-take-now) What has happened? [Read More →](https://blog.prophetic-technology.com/post-covid-supply-chain-planning-steps-to-take-now) - [supply chain (286)](https://blog.prophetic-technology.com/topic/supply-chain) - [technology (138)](https://blog.prophetic-technology.com/topic/technology) - [logistics (81)](https://blog.prophetic-technology.com/topic/logistics) - [procurement (69)](https://blog.prophetic-technology.com/topic/procurement) - [optimisation (65)](https://blog.prophetic-technology.com/topic/optimisation) Posted by [Dave Food](https://blog.prophetic-technology.com/author/dave-food) on May 29, 2020 3:58:30 PM ![Dave Food](https://app.hubspot.com/settings/avatar/9fa060d35f0f962fafafe972c24035ae) Find me on: [Facebook](https://www.facebook.com/davefood) [LinkedIn](https://www.linkedin.com/in/davefood) [Twitter](https://www.twitter.com/davefood) **What has happened?** Manufacturing hubs at China and cities where **COVID** emerged had to shut down, and largest 1,000 companies and their suppliers who own 12,000 facilities have suffered from a quarantine. **\*COVID** has mainly affected *demands* and *sales* in a 37%; then comes *productions* with 27% and a 16% on **SC**; *factories are shutting down*, whilst *demand patterns are changing*. \*We are watching a *Domino effect* as *panic, social distance*, and *stay-at-home* orders *stopped the life of people* and *businesses* around de world. *\*Shipment delays* and *widespread closings disrupted global* **SCs***. High-tech* is at the top of all industries affected, followed by *automotive, heavy machinery*, as well as *medical services* and health care, causing a *significant impact on* *Manufacturing*.   **How are we now?** \*The *rules were broken* by **COVID-19**. These are *challenging times* representing *great opportunities, but* there is a need to *move fast* and *set priorities*. The need for a *better state of things* brings us to a “*better-balanced normal*,” only if the society and business *observe* the new rules. \* Changes we are experiencing range from workers working from home, people shopping online for the first time, consumption limiting the amount of product bought, bank transactions done mainly by electronic means, to mention a few. \*Previous ways of doing things no longer fit in our processes.   **Does your company have the ability to adapt to new scenarios?** \*Regarding adaption to *change our mindset*, studies mention that 65% of businesses are *leveraging some new opportunities*, whilst 55% *want to limit risk*, and 41% try to maintain balance.   \*These events cause a new *thinking*, new *rhythms*, new *priorities*, new *rules*, and *future-new-norms* approaches to recover. \*For **SCs** *to compete* in this crisis they must have an *expedite* **SC** to *understand the granularity* of *when*, *where,* and *what* products to allocate to retain customers. **Build a resilient Supply Chain Planning.  How?** - Realising the *change of demand* and *buying patterns* to *restructure* your inventory stock. - *Looking for a range simplification* by *narrowing* the maximum and minimums amount. - Identify your *top priorities* to move forward. - Develop *collaboration* to increase growth. - Deploy Machine Learning (**ML**) and Artificial Intelligence (**AI**) *to make an important decision to change current scenarios*. - The *Digital Twins* approach can help you to *simulate possible procedures*. - *Probability-based* - Change your production capabilities, for instance, to fulfil the community medical needs as the demand for ventilators. **What comes next?** Studies found that 74% of experts think that their *priority* is to have a **SC** *capability review;* 39% are thinking to *readjust service-levels*, and 38% are thinking of *enhancing innovation collaboration*. \* We must *manoeuvre* to meet *shifting demands*. \* This crisis brings *opportunities to newcomers from other countries* coming into scene, as China and the **USA** suppliers have to *stop production*. \*Brands and retailers have *new rules*, *new ways customers engage* to *buy* and *shop online*, shop less         frequently, and buy fewer products. \* We will see *prices* and *taxes incentives issues*, and *changes in behaviour* on the **SC.** \* Prices are *going up* and *down* depending on needs of *fulfilment*, *availabilities*, and *profitability*. \* Your *inventory strategies* represent an *opportunity to re-design replenishment* more efficiently, as it depends on *demand variabilities*. \* Be ready for an *exciting mix from different approaches*. \* Both *short-term* and *long-term planning* will be necessary; so, leverage your capacities as both will be part of the success. \* *Transparency* is a crucial necessity challenge. \* *Flexibility* is crucial for **SCs** to understand *new possibilities* and to build *new capabilities*. \* Think about your *capacity to supply* and *change Manufacturing* to what is currently needed. \* Is the way you are *forecasting* the correct one?  Is your *reconfiguration* of *flexibility on replenishing demand* and *obtainability* of products still working?   **Anticipating future risks on the demand** \* *Planning* will intelligently consider the options. \* The rapid *reconfiguration* and *wiliness* to *re-conceive* the way we replenish and bringing new products to the market. \* By *increasing the spectrum of behaviour diversification*, to get better at triggering, identifying trends and changes earlier. \* Understanding *which products will sell well*, and which *have died*.  What has *triggered* the change on demand from one item to another?  \* The way product is used lead to an exciting *inventory mix*. \* *Unarticulated* and *unpredictable demand* needs *balancing* between the *right inventory, at the right time at the right place*.  \* Be aware of *escalating competition* and *signals of particular product drop*.  Create a behaviour in services within the **SC.** \* Companies will find *extra inventory, prices changing*, and *competition actively promoting.* \* *Diversified portfolio* through strengthening the supply net. \* *Adaptively place inventory* to protect customer service. \* The *granularity* of process defines the *level of detail used in modelling* of situations and of the understanding of data, and such data about demand signs. \* A more *adaptive-thought* of where to locate in place the product to our customer service. \* Get closer to the data. \* We are *not completing Automation* processes, as we still need professionals. \* Moving and supplying down the different channel and products needed to be more flexible. \* The analysis of demand signals will become more complex and challenging scenarios to look.   **Paths to COVID recovery** - *We will see more systematic planning* with *less history*. - *Collaborate with stakeholders* to *assess the market* and *opportunities to react*. - Model *growth/declines* with more *reactive short-term forecasting* and *demand sensing*. - *Collaborate with suppliers* to receive information on *product availability constraints*. - *Correcting possible stock imbalance* by *re-distributing* excess stock in the network. - Use “fair share allocation” logic to determine *the best way to allocate scarce resource* until supply replenishes. - *More responsive* to our *demands*, *processes* and *prices*. - Demand product *quality, quarantine stock fulfilments*, or *inventory getting stocked* fills from around the world. - Challenge your patterns with *alternative locations* or already *qualified suppliers* used to *diversified supplies* for short-terms. - *Reliability increasing* would result in *more clever thinking*. - Think about *segmentation in different ways*. - Try the *diversification of risk* by looking at *small segments* of the product supply, ensuring the *transition* both into downtown and out downtown. - Think about *alternatives, as multiple routes* to supply and to avoid risks. - To *reduce complexity*, move from *fixed stocking strategy* to an *optimal one* with *optimisation algorithms*. - Increase *variability to manage stock mix* and to *get a stocking strategy right*. **Where do we prioritise in terms of inventory service and metrics?** \* How much *visibility* do we have about our supply?  Hopefully we have *visibility of second* and *third suppliers*; because they are the mix of an assembled product. \*We might have *90% of the components* we need, or even higher, to be able to assemble *finished products*, but it might be that *one key component* is *not available*.  That *visibility* will help us to understand *which supply product we prioritised* and consequently *how much we will invest besides inventory* to give us *flexibility*. \*There will be *scarcity* and limitations in our supplies; then, where is the best place to position that inventory?  Is it the cost to the customer, is it at the point of the supplier?  In reality, there should be a mix. \*Are you using the *proper logic* to make sure you have "the right product in the right place, and at the right time" to maximise a *service level*, but also to *minimise the risk of failure*? Forecasting is difficult on the face of current events.   **How to be ready for the next curve?** - *Gather* - *Test* and *validate scenarios* at the *segment* - Start fast – fail quick – - *Minimise friction* out of the flow. - *Synchronise processes* using the power of machines. - Use *key flows* through data. **Dave Food** [Prophetic Technology](https://www.prophetic-technology.com/) **Subscribe to our emails & exclusive free content.** **[I want to subscribe](https://blog.prophetic-technology.com/cs/c/?cta_guid=0776642c-2604-4695-8e3f-f7a74f10031a&placement_guid=174cc371-9cdc-4b94-a32e-9007f0ac4dea&portal_id=2979069&canon=https%3A%2F%2Fblog.prophetic-technology.com%2Fdo-actual-jobs-equally-benefit-all-workers&redirect_url=APefjpF4Sxc7gEmul7z5-wU89eRH74m7Gjnq4lCre8tXiHEl4ZE9pKrFRvRW9l6Am6-q6DEvB590rMVCeeRffRZLcVE_gv8ri9Tl2d6Md72UH8pi7uhATO-yPVzgAeatsdNS9zB6oRX6V8snQhVUpAXUUKgPk2-8IRPKfu-bbqdKAf_ddndSUf1MBqtZE3EPMr0hX4b9hJ_E1HF6DYeQRXMMLC8dr7YVpkicTjP9k3_qynO04bNx8_XYuZXUaR5NW0EtjvZbDiyMtgCQWACW4zWhrhvVy8IEQ9rFkqzM9l4Bq4pp4NiPoLq3H8U5mIs4cSA1QCXNY0xw&click=309e0958-63db-4e6a-af5d-36323dff5440&hsutk=9724d4a2324e477c9e07bd5bc116a679&signature=AAH58kHgO1iDS5UxsGXE42-d-rQ3tRsfbg&utm_referrer=https%3A%2F%2Fblog.prophetic-technology.com%2F&pageId=27424704174&__hstc=108876957.9724d4a2324e477c9e07bd5bc116a679.1556898525657.1588429855784.1588505789111.111&__hssc=108876957.2.1588505789111&__hsfp=2920323932&contentType=blog-post)** - [supply chain](https://blog.prophetic-technology.com/topic/supply-chain) - [risk](https://blog.prophetic-technology.com/topic/risk) - [covid](https://blog.prophetic-technology.com/topic/covid) - - - ## Post Your Comments Here #### About Us Prophetic Technology is a team of dedicated people that combine their expertise in business domains with a passion to release potential.s every page it appears on. 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