Supply Chain after the Crisis?

so obviously there's some really challenging things going on in our supply chain world at the moment and this week I thought I'd answer some questions that one of our subscribers are sent in they're really great questions and it's all about what's going to happen after the corona virus pandemic in our supply chain so that's coming right up [Music] okay so thank you for sending in your questions and this one I thought was really good and it's it's a question that I've been asked a lot on our recent webinars and in fact if you haven't been on those webinars I'll put a link down below the video but the first part of the question is how willing would a company be to return its operations back to China after investing in relocating operations to other countries following coronavirus I'm not sure that companies necessarily have been moving factories but certainly they will have been moving suppliers and I think that's going to be one of the very interesting things from a supply chain perspective that comes out of this whole pandemic because what's happening is so many companies have placed a reliance on China as their primary sourcing country they've been caught out what they're doing now is they're diversifying across a number of different countries and a number of different suppliers and I think that's going to be a core thing to come out of this yeah I was watching this really interesting video on the element of trust and you know China has kind of become a bit of an outsider around the world at the moment unfortunately I think due to the lack of communication during the early days of the pandemic there was a lot of healthcare materials being sent out of China which then didn't appear to be very good quality and I think to be honest China is going to suffer for that long term and people may be reluctant to actually go back to sourcing everything from China but I'll come back to that point in a minute the next part of this really great question was how well do companies typically plan for disasters like the corona virus with supply chains becoming even more global in the 21st century what kind of future measures or preparations should businesses consider when planning their operations abroad well a great question will this will this change supply change significantly look the first thing I would say is how do you plan for a disaster like a pandemic like this this this is a once-in-a-generation thing but I think what I would say is that supply chains have become a lot leaner and probably Tulane in recent years and so we were very susceptible to something like this and the degree of flexibility and buffer and so on in supply chains these days just isn't as good so I think maybe one of the things that companies will do is to be a little bit more careful about their inventory management and their sourcing and perhaps holding a little bit of buffer stock maybe for their eye lines but I don't think you can actually plan for this I mean what are we going to do hold six months of inventory and our supply chains that's really just not practical and the third part of the question what countries are inadvertently benefiting from the massive shutdowns and supply chain shifts and what sectors are experiencing the most damage gee I feel like a politician getting three but question here but thank you for sorry I didn't write down Oh post of the question I'll acknowledge ER on the video that's really good so what countries are inadvertently benefiting I don't know it was such a good idea filming this outside we've got some lorikeets on the bird table behind me who come in every morning to be fed maybe the other ones I'll do the inside so what what countries are inadvertently benefiting look I think I've got low-cost country sourcing countries like India and Bangladesh and Vietnam and so a certain degree Thailand are probably benefiting a lot of sourcing had to move to those countries noisy aren't they all right I haven't got their breakfast yet that's what they're being noisy that will put out their breakfast shortly what sectors are experiencing the most damage I saw an interesting with port law on this last night actually and on the one hand there are loads of sectors that are doing well obviously you know food cosmetics funnily enough anything that's going to be used in the home bread makers really going well the things that are not going so well are probably fashion and Sporting Goods and you know even if they were able to deliver those online they'd be suffering a little bit so the other element that I wanted to talk about yeah was was trust I did touch on that and I think Trust is going to become much more important in the supply chain in years to come we want to know that there's going to be continuity of supply we want to know that there's going to be good quality and I think you know a lot of our systems are going to be focused towards that so look I'm gonna have to give up because these thirds I'm not going to shut up until they get their breakfast so thank you very much for the question do keep the questions coming in and I do promise the next video will be from inside away from these noisy little blighters okay so you know how this works if you're not subscribed to the channel do hit the red button down below and hit the bell that way you'll be notified every time we have a new video coming out and they do come out every Wednesday and also do post your questions below I mean there's so many questions coming out these days on supply chain to comment what you're seeing out there on supply chain and I'll put that link to the webinar that we're running at the moment we're running it every couple of days live just to update people on some of the things that they ought to be doing so thanks for watching and see you soon [Music]

Channel: Supply Chain Secrets

Views: 2,587

Rating: 5 out of 5

Keywords: Supply chain, logistics, supply chain secrets, supply chain challenge, supply chain analysis, supply chain management, supply chain risk management, supply chain risk management examples, risk management in global supply chain, risk management, risk management, risk management plan

Id: dGfbuFlxjko

Length: 6min 22sec (382 seconds)

Published: Tue Apr 07 2020