Five retail strategies to tackle supply chain disruption from Covid-19 & beyond
3 minute read
With an industry already going through significant restructuring, Covid-19 was a sledgehammer to further disrupt the retail sector, leaving global supply chains in tatters at times.
This article is the last in a series, and forms part a wider report entitled “Covid-19 & the Future of Retail Supply Chains” which looks at the future of supply chains in a era of disruption.
Here, we look at what retailers and brands can do to make their supply chains as resilient as possible in the short term, and protect them against the challenges and shocks posed by Covid-19 pandemic and its aftermath.
As part of a toolkit for retailers to address supply chain disruption, we have identified five strategies to help them navigate the key challenges that lie ahead. This article summaries these strategies; however, download the full report here for more detail.
The five strategies include:
1. Workforce management
For most retailers, business continuity will largely hinge on their ability to intelligently manage their workforce throughout their supply chain, whether it’s on the shop floor or elsewhere in the supply chain. The majority will require visibility over their tier 1 suppliers and develop relationships that instil confidence that adequate measures are in place to limit the risk of plant closures. This will be critical when planning for periods of peak demand such as Christmas and Black Friday. It will also be critical for retailers to prepare succession plans for vital positions throughout the supply chain, ensuring key executive (and management) positions have adequate cover, should employees need to self-isolate or become ill.
2. Agile planning
Contingency planning across the business will be vital in reducing risks and identifying ways to mitigate the impact of the virus. Retail brands will need to assess the impact in both financial and operational terms and also develop solutions that limit the impact of supply chain disruption. A continuous review and risk assessment of supply chains is needed so that businesses have built in the necessary flexibility to switch suppliers, operate parallel supply chains if needed, or switch supplier countries if localised disruption persists. Identifying the weakest links in supply chains and understanding the impact that disruptions could have in meeting supply requirements is critical.
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