The Covid-19 pandemic resulted in disruptions in the global supply chain. There were lockdowns in multiple countries which reduced the flow of raw materials and finished goods, or the flow was temporarily stopped. Various sectors were affected by the pandemic particularly the automobile industry. Many companies have suffered massive losses and staff shortages due to the pandemic. But there were existing vulnerabilities in the supply chain even before the pandemic.

The pandemic amplified the already existing problems in the supply chain.

Supply chain strategies must become more resilient, collaborative and networked with suppliers, customers, and other stakeholders.

Here are some of the changes we can expect in supply chains post pandemic:

·      Use of AI and IOT: IoT devices or sensors that offer useful information on where things are in the supply chain and their condition, such as products that require temperature monitoring (i.e., frozen foods, vaccines, or other medicines) can be used. Organizations can use Artificial Intelligence to make predictive and prescriptive decisions throughout the supply chain. Machine learning algorithms can be used to make predictions. People’s tasks will be made easier, and the supply chain will be more efficient and improved, thanks to digital and autonomous technologies. One of best examples for this is Amazon. Amazon staff used to walk warehouse floors scanning for each product; today they utilize Wi-Fi connected robots that read QR codes with built-in cameras to identify things. For example, the AI system determines which things should be prioritized for Amazon Prime orders, and the robots handle the rest.

·      Diversification and segmentation of suppliers: The obvious solution to a strong reliance on a single medium- or high-risk source (a single plant, supplier, or region) is to establish new sources in regions that are not exposed to the same hazards. Supply chains can be diversified across different locations and suppliers eliminating the choke points. For example, Qualcomm has started to build new manufacturing facilities with its suppliers in order to counter chip shortage caused due to pandemic.

·      Increase in automation: More types of employment are being mechanized as the cost of automation decreases. Because of social distancing required in factories, automation has become even more appealing.  Labor-intensive industries, industrial products and high-tech manufacturing corporations are spending heavily in technologies to decrease employee exposure to COVID-19. Maruti Suzuki uses robots at its factories. The robots are deployed largely in weld shop, paint shop and press shop.

·      Safety stock: If substitute suppliers aren’t available right once, a corporation should figure out how much extra stock to keep on hand in the meanwhile, in what shape, and where in the value chain. Naturally, safety stock, like any inventory, entails the danger of obsolescence and consumes cash. It contradicts the widely held belief in just-in-time replenishment and lean inventories. However, the cost savings from those measures must be balanced against the total cost of a disruption, which includes missed revenue, higher prices for commodities that are suddenly in short supply, and the time and effort required to get them.

·      Increase in resiliency and transparency: Real-time visibility and monitoring of end-to-end supply chain, as well as scenario planning and simulations, will help to respond more quickly to disruptions.

·      Retraining and reskilling of workforce: Retraining and reskilling of staff would help them adapt better to technologies and increase virtual collaboration.

·      Driving agility and opportunities for growth through a digital supply chain: Developing a digital, end-to-end supply chain that spans planning, procurement, manufacturing, and logistics. This can result in increased efficiencies as well as new revenue streams.

Covid-19 pandemic has certainly changed the way we now look at supply chains. Industries across the world were affected by the pandemic as both global as well as local supply chains were disrupted. We have certainly realized the importance of a strategic supply chain. The supply chains of the future need to be agile, flexible, efficient, resilient, and digitally networked for improved visibility and economic viability.