Did you witness your supply chain crumble in the first quarter of 2020? We know what happened and how to fix it

 

The biggest bottleneck for any product right now is the supply chain.  New research indicates that a weakened supply chain is the biggest business disruption related to COVID-19. According to research, the impact of Coronavirus is both global and unpredictable, and the supply chain shock it is causing will most definitely and substantially cut into the worldwide manufacturing revenue of $15 trillion currently forecasted for 2020.   

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While many ERP platforms include modules for inventory control and supply chain management, in light of the outbreak, many manufacturers will also turn to specialist providers. Supply chain orchestration requires software to be more than a system of record and provide risk analysis and run simulations, enabling manufacturers to understand and prepare for supply chain shocks.

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ERP providers agree that COVID-19—and panic buying which quickly exhausted the supply chain—has exposed a major vulnerability in manufacturing operations.

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So, while all eyes are on automation, like robotics and Industrial Internet of Things (IIoT) sensors, to flow product through the line, none of that matters if the manufacturer doesn’t have a steady flow of raw materials. COVID-19 demonstrates that manufacturers need to be as focused on their supplier’s capabilities as they are on their factory floor.

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This pandemic has brought together some unimaginable corporate partnerships never seen before. When the whole supply chain broke down, automotive metal parts manufacturer in Minnesota made tiny pistons for ventilator manufacturer in Seattle and the project was managed by an automotive giant in Detroit and all of this was conducted in a few days as compared to months of work under normal conditions.