Updated: Nov 19, 2020
In this article, we highlight how companies can proactively take response measures to ensure a shock-resilient supply chain.
From coordinating the transition to remote work to managing cash crunch and supply disruptions, businesses must overcome various hurdles that Covid is posing to stay competitive. Most fundamental of these challenges, companies are struggling to even figure out which production sites are in operation. Lacking basic information on production status, it is almost an impossible task to respond to changes in demand. Companies who could have emerged as Covid beneficiaries from a sudden surge in demand are losing out on their golden opportunity due to inadequate supply chain management capacity. To help companies work through the complexities, eMoldino compiles each supplier data onto a digital platform where live data of the entire supply network are always available.
How Covid-19 gave the wake-up call
The Covid-19 pandemic has pushed the business world to rethink and reassess the risks associated with a complex global supply chain. Until now, having an efficient supply chain meant allocating as much production to low-cost manufacturers, typically in China, Southeast Asia, or India. The rush to capture short-term growth by extensive offshoring had corporations adopt the global supply chain as the default supply model. Businesses widely instituted the model without properly assessing the risks associated with growing complexity from an expanded supply chain.
Companies defenseless against supply disruptions
The pandemic highlighted businesses’ systemic unpreparedness in face of prolonged supply disruptions. At unprecedented scale, Covid caused supply obstruction all along the supply chain, from procurement of raw materials to parts delivery, which, consequently, held back final product distribution out to the consumer market.
Frequent production interruptions across different time zones presented real coordination challenges to businesses. However, according to EY’s survey on supply-chain executives, “only 6% of respondents were confident in their systems and capacities for end-to-end supply chain visibility”. Additionally, Deloitte’s 2020 Covid-19 supply chain risk and disruption report also detailed that “very few organizations can trace their supply chain beyond their Tier 1 suppliers”.
Accordingly, without a centralized management system to oversee the intricacies along the supply chain, those lacking the digital infrastructure are scrambling to cope with supply shocks. A leading appliance-maker suffered a 1.6% fall in revenue in the third quarter alone, citing Covid-related supply strains. A global PC vendor suffered a 11.3% YoY shipment decline due to a Covid-initiated supply fallout. The struggle isn’t limited to few firms; 94% of Fortune 1000 companies are experiencing supply chain disruptions, according to Fortune. The reality is companies overstretched their supply chain without investing in supply chain management systems.
Conventional contingency plans of inventory buffers to offset supply disruptions and a manual reporting system to monitor supply situations proved woefully insufficient. Covid is proving to be a critical point for a strategic rethinking for a much digital, long-term solution. To take immediate action on supply and demand fluctuations that vary daily, companies need real-time digital supply platform that incorporates all suppliers.
How eMoldino can help
A global consumer goods company and a leading automaker approached eMoldino for the implementation of a comprehensive tooling monitoring solution. By compiling each mold/die data within a production facility, eMoldino organizes the amassed dataset to reflect real-time production status of each supplier. The data of all suppliers are comprehensively compiled onto a digital platform, capturing the entire manufacturing chain for the company. In effect, eMoldino allows your company to have insight on the most granular data of each mold to your entire manufacturing supply network.
By monitoring the production status at every stage, eMoldino equip OEMs with the capability to adjust to supply constraint or excess demand. The platform ensures that OEMs receive immediate alerts for any plant downtimes or impending overcapacity and illuminates the entire manufacturing chain for the company so that it can appropriately reroute production to other suppliers who have room to handle additional production orders. Instead of having your vast supply chain present coordination challenges, eMoldino digital solution leverages your extended supply chain to mitigate supply risks.
The gap between firms with the digital infrastructure and those without will only widen in the post-pandemic era. Take action now with eMoldino solution.
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