![]() ![]() Enabling this sea change are technologies such as IoT devices or sensors that provide valuable data on where goods are in the chain and their condition - for example, products for which temperature monitoring may be critical (i.e., frozen foods, vaccines or other medicines). With the need for increased visibility across typically hundreds or thousands of suppliers, we are already seeing a shift from linear supply chains to more integrated networks connecting many players. And as a result, a high-performing supply chain is now perceived as a competitive necessity. The pandemic also forced supply chains to develop new agility to carry forward – for example, many organizations are building advanced analytics to do dynamic SKU rationalization rather than doing one off spreadsheet exercises when inventory gets too high or the next crisis requires optimization. For example, supply chain finally got a voice, and much-needed investment in technical capabilities such as real-time visibility and resilience. However, some positives have come out of the disruption. ![]() These are just a few examples of changes affecting supply chains across various sectors. Industrial products and high-tech manufacturing companies are investing overwhelmingly in technology to reduce employee exposure to COVID-19 in more labor-intensive industries. ![]() While many employees were asked to work from home, others - especially in factory settings - had to adapt to new requirements for physical spacing, contact-tracing and more personal protective equipment (PPE). In addition, 47% of all companies reported the pandemic disrupted their workforce. Among survey respondents, all automotive and nearly all (97%) industrial products companies said the pandemic has had a negative effect on them. Some sectors were hit particularly hard, however. Other sectors, particularly consumer products, couldn’t keep products on the shelves in the early days of the pandemic since toilet paper, canned goods, flour and other staples were in high demand. ![]() The pandemic also required some life sciences companies to double down on creating essential new products such as COVID-19 tests or vaccines. These companies were mostly in the life sciences sector and the positive effects may be largely because the products they produce are essential. There were some clear winners by industry during the pandemic, with 11% reporting positive effects, including increased customer demand (71%) and bringing new products to market (57%). This speaks to the value of a digital supply chain in helping enterprises navigate disruptive forces and respond faster to volatile supply and demand. But during the COVID-19 pandemic, 92% did not halt technology investments. Often in uncertain economic environments, companies slow their technology investments to a trickle. To do that, they will increase investment in supply chain technologies like AI and analytics, robotic process automation, and control towers while retraining workers. In the aftermath of severe disruption from the COVID-19 pandemic, the survey found that enterprises plan to shake up their supply chain strategies to become more resilient, sustainable, and collaborative with customers, suppliers, and other stakeholders. The respondents were senior-level supply chain executives at organizations across many sectors, including consumer products, retail, life sciences, industrial products, automotive, and high-tech companies with over US$1b in revenues. The following are some findings from a survey that Ernst & Young LLP (EY US) conducted in late 2020 and again in September 2022. But overall, it has accelerated and magnified problems that already existed in the supply chain. In some areas, it brought to light previously unseen vulnerabilities including staff shortages and losses due to closures. However, the pandemic has not necessarily created any new challenges for supply chains. Even in 2022, national lockdowns slow or even temporarily stop the flow of raw materials and finished goods, disrupting manufacturing as a result. The pandemic continues to offer significant challenges for supply chains globally. ![]()
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