The real world rarely follows the rules–the Coronavirus is more evidence of this reality. Organizations must be ready to adapt to changing needs, especially in a challenging and competitive environment. When they can rapidly and efficiently respond to whatever disruptions of the future, we ensure a higher degree of supply chain stability in today’s interconnected, global world, and add more dollars to organizations’ bottom line.
Respond efficiently and thrive amid the COVID-19 crisis
Major events like the Coronavirus crisis trigger demand volatility that affects every link in the supply chain across global organizations—from procuring the raw materials to setting safety stock levels to planning logistics and promotions. Usually, organizations will use a “firefighting” response in times of supply chain disruption to meet service levels. Examples of this include expediting with LTL and air freight and costly in-network transfers from the warehouse to warehouse–all of which erode profit margins. Being ready and adapt to changes for disruptions means organizations can effectively respond to critical events to eliminate costly reactionary activities in times of disruption. With SAP’s digital supply chain planning and execution, organizations can automate the achievement of service levels even under changing constraints—and in some cases respond to a rapid increase in demand or a sudden drop. In such scenarios, it’s more critical than ever to use advanced techniques to continue to provide service levels customers expect.
Being ready for managing disruptions means one can automatically and quickly translate any hypothetical future scenario into a series of timely and appropriate decisions. Many of our customers are taking advantage of “be ready for disruption” SAP technology to adjust faster and better to whatever they expect to be the future market behavior brought on by this health emergency.
For example, One US-based Birlasoft customer sources raw material from suppliers who are affected by the Covid-19 crisis. The customer is facing huge demand spikes due the stay at home orders, and also facing severe shortages in supply ex. meat supply. During this time of constrained supply, the client is working with these suppliers to understand what supply will look like, balance current inventory position within the manufacturer and the distribution network, and model a range of scenarios potential downturn/upturn in demand. The COVID-19 crisis has ushered in the unknown magnitude of downturn/upturn we knew was somewhere on the horizon. Will your company merely survive it, or will you keep your foot on the gas and surpass expectations? ”