HOW TO AVOID THE SUPPLY CHAIN CRISIS?
With the coronavirus pandemic the delays and cancelations in supply chains were inevitable, this highlited how vulnerable are not just fashion brands are but all businesses.
This situation was so unexpected and unique that no one could think of a failsafe in case of failure. Companies should learn this vital lesson and begin to reinvent themselves and the supply chains.
This is a unique moment on our history where the supply chains can evolve showing their resourcefulness and capacity of adaptation facing the pandemic challenges. There are a few steps to make this adaptation easier:
The first step is to digitize as many processes as it is possible in the chain, this can have a very positive impact on the operations, of course in the fashion industry not everything can be done digitally but if this strategy is used to improve some aspects of it the supply chain will be much more efficent in times of crisis. The product availability and the response to market changes will be much higher.
The second step is to build a crisis management team that will focus on working in the disrupted supply in times of crisis, this team will manage the issue from the begining till the end and they should be trained for these situations.
The third step is to have as much visibility as possible, the lack of it can frustate the business ability to plan in case of crisis and retard the process. This also would help the mcrisis managment team to work more effectively. The brand should do it best to know and learn about the parts of the supply shain improving every aspect.
In this problem the small business have the upper hand since the chain is much shorter, they may overlook the second step beeing able themselves to manage the crisis but the digitize and visibility step is a must for every brand.
This crisis have every business on edge but it's an opportunity to reinvent and evolve and get prepared in case of another crisis.
By Aliya Akhunova