Posted: 05 Dec 2022 by Lauren Garghan

Should your company consider redesigning its supply chain?

Should your company consider redesigning its supply chain?

The last three years have been a rollercoaster ride for supply chains. From 2019 onwards, it’s been one major shift after another. The world is still reeling from the aftershock of these events, trying hard to readjust to an ever changing landscape of uncertainty, delays, obstacles and shortages. 

This begs the question: should your company consider redesigning its supply chain?

 

The major challenges

In three short but turbulent years, we’ve seen worldwide shifts that have negatively impacted global supply chains irreparably:

 

  • The COVID-19 Pandemic: both directly and indirectly causing the loss of millions of lives and livelihoods around the globe. Productivity ground to a halt with lockdowns causing delays, hold ups and shortages in global supply chains.
  • The Great Resignation: partly a result of the COVID lockdowns, many people chose not to return to work or indeed, leave their current place of employment. Sectors that were hit hardest by the pandemic like accommodations and healthcare created a huge demand for workers during the recovery.
  • Extreme Weather Conditions: right across the globe, detrimental weather conditions have attacked areas where global food supplies are sourced.
  • The Russian Invasion of Ukraine: potentially a precursor to the next nuclear conflict. The disruption the invasion caused has exposed just how reliant the world is on the resources supplied by Ukraine.

Supply chains in focus

The compounding effect of these global events has put supply chains front and centre in news headlines. Previously, supply chains were arguably an invisible concept. People had been purchasing goods from the supermarket, internet and high street with little to no concern about where the components that make up the product came from.

But now people are talking about supply chains on a regular basis, increasingly due to concerns about their impact on the natural environment and indeed on human rights. Consumers are asking more of their suppliers. What carbon footprint do these products have? Are they responsibly sourced? Are the workers being paid a fair wage?

The need for transparency chains in focus

Answering these tough questions will require leadership and stakeholders to come up with a method of finding legitimate answers. This ultimately means they must be able to gather accurate data about what precisely is going on in their supply chains. Transparency is really the only way for companies to audit their supply chains. Scope 1, 2 and 3 emissions, certifications and risk assessments provide companies with answers to important questions.

The resulting data can inform decision makers on how they can redesign their supply chains to provide a more sustainable product or service. This may mean changing a supplier or perhaps working with the supplier to make improvements that can be measured and reported on over time.

Should your company consider redesigning its supply chain?

Being prepared for change 

If there’s one takeaway from the last three years, it’s that things can change rapidly. Being ready for sudden changes that could impact your supply chain is a high priority. While no one can predict the future, there are steps that can be taken to fortify your supply chain.

 One way is by keeping up to date with new regulations and legislations that may impact on your operation. For example, the UN has now approved a treaty on plastic pollution. The treaty will call for plastic to be recycled and reused instead of being made new. Therefore, the gradual shift towards a more circular economy will mean that companies will have to make drastic changes in their supply chain to adapt.

 Plastics have a huge impact on the world economy, particularly in regards to packaging for the vast majority of products and services used today. 

 But what specific changes can a company make?

 How might they redesign their supply chain to ensure they are using only recycled or reused plastic materials?

 The good news is that subject matter expertise like this can be brought into your company via the hiring of a strategic partner…

 

Subject matter expertise 

The STAR Index Partner Program can offer your company the industry specific consultancy it needs to redesign, modify and fortify your supply chain against the challenges that lie ahead.

Our partners are well versed and up to date with their specialised industry and bring that knowledge into the work they do for you and your business operation. 

To find out more about how working with us could benefit your organisation, please click the link to book a 15 minute conversation with a member of the team. 

Talk to us today!

The last three years have been a rollercoaster ride for supply chains. From 2019 onwards, it’s been one major shift after another. The world is still reeling from the aftershock of these events, trying hard to readjust to an ever changing landscape of uncertainty, delays, obstacles and shortages. 

This begs the question: should your company consider redesigning its supply chain?

 

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