It has been over a year now; the world is still grappling with the pandemic crisis. It has dealt a severe blow to the mankind and global economy. The global supply chains too have experienced unique challenges of their own.
Pandemic leading to Supply Shock
Within the initial few weeks of the year as China – the ‘World’s Factory’, battled the pandemic, the global supply chains readied for the ‘supply shocks.’ As the pandemic originated from China the global exports were immediately postponed keeping it from spreading the virus. This lead to supply shock, causing major disruptions to the availability of both finished goods for sale and raw products used in factories in developed markets.
Irrespective of their size or location, every company went all-out to sort their production feasibility to meet the surge in demand. The need of the hour was being resilient to survive the shock.
Lockdowns leading to Demand Shock
With second and even third wave of the pandemic affecting most of the countries across the continents, the immediate solution to break the pandemic chain was to implement prolonged lockdowns and many going into quarantine. This resulted in global consumers to hoard & stock supplies fearing unavailability of the essentials and opportunity to step out. The lockdowns lead to a ‘demand shock’. Most of the brick ‘n’ mortar businesses without consumer footfalls pulled down shutters for good.
Companies that innovated could sustain the demand shock and evolved successful. For example major cosmetics repurposed their production facilities intended for fragrances & hair gels to manufacture hand sanitizer. Likewise, some major automotive used their assembly lines to manufacture ventilators.
The New Normal driving the Sustainability
Over the year, the pandemic has taken a huge toll on human lives, triggering recessions, tanking of stock prices and unimaginable impact on supply chain design & structure across the globe.
Amid such difficulties, the new normal has brought about a paradigm shift in the way business is conducted. It has put sustainability in the spotlight. The crisis has given the organizations an opportunity to rethink their global strategy and accelerate their capabilities for the adaption of long-term sustainability in managing future challenges.
Therefore, there is a pressing need for business environment to explore new ways & drivers that will support Supply Chains against future global disruptions. Business agility is now a necessity to survive. Technology & collaboration lay the foundation of a “new normal” is e
The new normal is driving businesses to adapt to the new reality of social distancing, increased digital transactions, reduction in time-consuming manual processes that shall enable business to be more agile and sustainable. Technologies like AI & ML, IoT and Blockchain are helping Supply Chains to be agile.
How can Krypt help you?
Krypt is a ‘one-stop shop’ for supply chain & global trade solutions with a global footprint. Our in-house solutions and pre-packed solutions for SAP TM, SAP IBP, SAP EWM, and SAP GTS, are an outcome of our long-term innovation, technology knowhow, and sustained customer engagement across 35 countries.
We offer various deployment options that are tested & tailored to a company’s specific-process and/or business needs. Krypt can help businesses to quickly embark upon their digital transformation along with being agile in the face of uncertainties of tomorrow.
If you wish to know more about our cutting-edge products/services, please request for a demo or contact us.
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