The Top 6 Supply Chain Trends in the Year of COVID-19After a year dominated by a pandemic, many of the anticipated trends heading into 2020 have been reconsidered—here are 6 to be mindful of going forward.

The supply chain has experienced more disruption and subsequent evolution than any time in recent history. As a result of COVID-19, companies have had to reevaluate the state of their supply chains and make the necessary adjustments to make them thrive in a time of great uncertainty. What that means is that many expectations as to the state of supply chains this year have had to have been thrown out and replaced. And, while certain shifts in the supply chain have been long anticipated, they nonetheless require reexamining for how they’ve unfolded.

This article by Morai Logistics presents 6 of the most prominent trends in supply chain today.

Agility is More Important Than Ever

As important as forecasting is, it’s agility that’s gained greater attention over the course of this year. If this pandemic has demonstrated anything, it’s that supply chains can’t always anticipate the market. With that being the case, it’s critical that supply chains be agile (and flexible) enough to respond quickly to fluctuating demands.

Blockchain Gains Traction

Blockchain has been a technology that for years has gained attention and displayed promise. Yet, despite that being the case, reservations around its viability have remained and adoption rates have remained low. While the pandemic hasn’t radically changed that, it has once again highlighted the value (specifically, transparency and security) of the technology. As such, it has garnered renewed interest.

Sustainability is a Must

The demand for sustainability has been building for many years. COVID-19 has done little to dampen that demand. Simply put, sustainability within the supply chain is quickly becoming something that is no longer optional.

An article from Manufacturing.net expounds,

For example, 66 percent of millennials are more likely to patronize a company with sustainable and eco-friendly culture. Furthermore, brands that advocate for sustainability grow 5.6 times faster than brands that don’t.

Big Data Remains Critical

Supply chains need to be intelligent to succeed. As self evident as that is, the route to intelligence is multifaceted. One key facet is data. Data is the lifeblood of intelligence. Thus, the more data a supply chain has to work with (given the right tools), the more precise it can be with its intelligence. That precise intelligence, in turn, helps combat the many disruptions that supply chains might face.

AI Continues its Ascent

Tied closely to big data is artificial intelligence and its subsets (such as machine learning). Another critical component of an intelligent supply chain is having the right tools in place to utilize data. No tool is quite as robust and varied as AI. From forecasting to automation, its uses are as wide as they are advantageous.

The previously mentioned Manufacturing.net post explains,

By 2019 end, 37 percent of organizations had implemented AI, and in 2020 the numbers are poised to grow. Businesses that make use of AI technology in their supply chain have seen improvements. Such improvements include inventory management, staff productivity, supplier selection process, and customer experience.

Omnichannel is the new Standard

Finally, given the impact the pandemic has had on physical patronage, the need for omnichannel fulfillment has only increased.  What’s more, at this point, quality customer experience is nearly synonymous with omnichannel service. Customers desire seamless service, where what’s physical and digital no longer need to be clearly distinguished. This is even more so the case with the onset COVID-19. It’ driving an unprecedented number of customers online, with physical interactions having been reduced to a minimum.

Ensuring Supply Chain Success During and After COVID-19Companies are facing significant hurdles since the onset of COVID-19, especially in their supply chains—here are the steps they should be taking to ensure supply chain success.

COVID-19 took everyone by surprise. In its wake business operations of all kinds have been disrupted. The supply chain in particular has shown its vulnerabilities and its need to change. With that said, it critical for supply chain managers not to be reactionary. Supply chains must change to adapt to the reality they currently face, however, they should also be ready for what’s to come down the line.

As such, it’s up to managers to take the kinds of action that will not only help their supply chains survive and thrive during this pandemic but also prepare them for whatever other disruptions or challenges that may yet come. After all, in a landscape that is broad and often unpredictable, myopic decision making can be catastrophic

This ebook presents the measures companies should be implementing in order to make sure they’re successful during the pandemic and for years to come.

What Should Supply Chain Managers be Doing to Beat the Pandemic?

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That’s it for us this week! If you liked this blog post, why not subscribe to our blog? Interested in our 3rd party logistics services? If so, don’t hesitate to check out our services . We’re also in the twittersphere, so give us a follow to get the latest logistics and supply chain news.

The New Normal - 5 Ways Supply Chains are Reshaping ThemselvesSupply chains have undergone extreme change in response to the pandemic these past few months—here’s what they’re set to look like going forward.

It’s hard to overstate the impact COVID-19 has had on supply chains. It has brought risk to numerous processes within them, particularly in warehousing. Moreover, it has made certain areas of sourcing as well as supplies inaccessible or unreliable. Equally, it’s called into question the very shape of the modern supply chain. It’s demanded acceleration in some aspects of the chain and a step backwards in others.

This article by Morai Logistics highlights several ways in which supply chains are transforming in response to the pandemic.

Regional Supply Chains

With global supply chains breaking down due to the impediments that come with COVID, supply chain leaders are looking to adapt to a regional model. This is because many of these impediments are coming by way of companies’ reliance on China. As such, companies are now looking for regional independence in their supply chains.

A CNBC article from earlier this year, covering a EIU report explains,

“By building quasi-independent regional supply chains in the Americas and Europe, a global company will provide a hedge against future shocks to their network,” the EIU said. “For those companies that have this luxury already, they have been able to shift production of key components from one region to another as lockdowns and factory closures resulting from coronavirus have unfolded.”

Sourcing Diversification

While most companies aren’t going to outright abandon China, the sensible ones will look to not have sole sourcing dependency on them. It comes down companies wanting to have options in case of future emergencies such as this one. They don’t want to be once again stuck and scrambling for a path ahead. Thus, the “China + 1” approach has gained a great deal of traction. It gives companies the ability to still benefit from Chinese sourcing while having the flexibility to pivot.

Increased Storage

Although this won’t necessarily be a long-term trend, for now at least, shippers will require more storage. With many carriers having cancelled their shipments, leading to a much higher proportion of blank sailings than before. Put more simply: wherever demand has been negatively impacted, inventory needs to be stored.

As Supply Chain Dive’s post with Georgia Ports Authority Executive Director Griffith Lynch emphasizes,

Shippers will, in the short term, need ports and carrier partners that are able to provide extra storage, he said. Much of the warehouse space available throughout the U.S. is being absorbed by e-commerce customers that have seen a significant increase in business since the pandemic, he continued.

Focus on Collaboration

The value of strong supplier relationships has never been more apparent than it is now. More than ever before, there needs to be mutual trust and understanding between supply chain leaders and their suppliers. In an uncertain supply chain landscape where demand can rapidly change and hindrances can spring up in any section of a chain, it’s critical for those running them to be working in unison with their suppliers so they are able to anticipate and address any possible risks. What’s more, this additional consolidation of information will only make the supply chain as a whole run more smoothly and efficiently.

Digitization

There’s been a considerable focus on resilience following this pandemic. Rightfully so. Supply chains need to be robust enough to weather whatever comes their way. Central to achieving this for many companies has been digital transformation. Through going digital, companies have been able to address many of the factors necessary for resilience.

Via digitization, companies have been able to make their supply chains more transparent, integrated, collaborative, proactive, agile, visible, and so on. By giving themselves access to the best technologies available, companies are putting themselves in the best position to handle uncertainty.

Supply Chain Strategy - Navigating an Uncertain EconomyWith the economy experiencing historic trouble, it’s up to supply chain managers to plan for an uncertain future and secure their supply chain for whatever may come.

After months of dealing with a pandemic, the economy has taken a serious hit. What’s more, it’s hard to tell how long it’ll remain depressed. On top of that, there’s the added factor of uncertainty. Perhaps the worst of this pandemic is over, our economies will continue to open up gradually and everything will be back on track sooner than later. On the other hand, a second wave of COVID-19 might come, pandemic measures might be put back in place, and the economy might once more struggle.

All of this is not to promote pessimism but rather to present some possibilities of what the future has to hold for the economy. With an acceptance of these possibilities, there’s the chance at empowerment. In the face of uncertainty, it’s up to organizations to be proactive. To ready their supply chains for whatever’s to come. So that they can be comfortable and confident in the fact that come rain or sunshine, they’re good to go.

This article by Morai Logistics highlights several steps supply chain mangers should be looking to employ in order to prepare their supply chains for the future.

Review Suppliers

Many suppliers are in a tough position. Many of their preexisting contracts will be useless and their customers will want to renegotiate. Moreover, they’ll experience a notable decrease in demand from them. It’s critical for companies to then review their suppliers and strengthen their relationships with the ones that survive that review. Key to this is building trust and openness. Which, in turn, can lead to collaborative risk assessment.

As an article by Supply Chain 24/7 puts it,

Companies that have already invested in creating transparent, high-trust relationships with suppliers, and that put in place supply chain risk monitoring systems, are already reaping benefits. Others must now redouble efforts to reassess risks within their supply base and work jointly with suppliers to develop and implement risk mitigation strategies.

Renegotiate Supplier Agreements

With the market having changed so drastically so quickly, companies will have to look at their contracts with their suppliers. If there is a possibility of renegotiation, they should pursue it. However, what they almost certainly should not do is try to force their supplier’s hand.

Acting in bad faith and not receiving their supplier’s delivery while pursuing a price decrease is not the way to go. Instead, companies need to work with their suppliers for an equitable new contract. While it’s important to act quickly and deliberately, it’s just as important for companies to maintain strong relationships with their partners.

Reinforce Supply Chain Resilience

Now more than ever, the areas of weakness within a company’s supply chain are being exposed. It’s up to companies to review their supply chain, analyze it, and shore up its most vulnerable links. Not only will such a review be useful now, but it will generally prove beneficial going forward.

As explained in the previously mentioned Supply Chain 24/7 post,

During periods of growth, many companies find themselves moving too fast to carefully analyze their supply chains and eliminate suppliers that add little value or introduce unnecessary risk. Now is the time to scrutinize distributors and brokers, and aggressively pursue dis-intermediation.

Collaborate

It’s already become a common theme in this article, and there’s a good reason for that. Without working hand in hand with their suppliers—their partners—companies will only experience further disruption and turmoil down the line. Now is not the time to be short-sighted and narrow-minded. Companies with a vision know they have to build healthy, long-lasting relationships for success. Especially in times of hardship. Through a more transparent, collaborative relationship, supply chains will find it easier to spot risks and areas of cost reduction.

Intelligent Supply Chain - 5 Reasons to Make the MoveSupply chains are are being forced to transform faster than ever in light of current circumstances—here are 5 reasons they should be becoming intelligent.

Recent times haven’t been easy on companies’ supply chains. They’ve had their suppliers challenged and resilience tested. In many ways the weaknesses of many supply chains have been laid bare and subsequently scrutinized. Why don’t companies have stronger protocols for handling disruptions? Why have some of them been so slow to respond to changes in global conditions and markets?

These important questions, and more importantly, the struggles that have been the source of them, have also meant that companies are looking for rapid improvement. And that means technological progress in the form of digital transformation. That’s where intelligent supply chains come in. In them lies the future of supply chains. A future where disruption is easier to predict, navigate, and respond to.

This ebook covers what intelligent supply chains are and the main advantages that come with having an intelligent supply chain.

What is an Intelligent Supply Chain and What Benefits Come With Having one?

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That’s it for us this week! If you liked this blog post, why not subscribe to our blog? Interested in our 3rd party logistics services? If so, don’t hesitate to check out our services . We’re also in the twittersphere, so give us a follow to get the latest logistics and supply chain news.

Circular Supply Chain - What is it and Why is it Important?With companies putting greater emphasis on sustainability than ever before, it’s critical to understand what a circular supply chain is and how it functions. 

Today’s supply chain is one that caters its practices and operations to customer demands as precisely possible. In turn, few things rank more highly on the list of customer concerns than sustainability. Not only that, but the need for sustainability is also being driven forward by governments around the world, with numerous penalties and incentives for companies that are more or less compliant with their regulations and guidelines. As such, companies are quickly making a transition to ‘green’ supply chains. Supply chains that are less wasteful, use materials that are recyclable, leave a smaller carbon footprint, and more.

However, making that transition is far from easy and requires a holistic change in the way that supply chains are operated and managed. Essentially, companies need a new operating model. This is where the concept of a circular economy and circular supply chain comes into play. These concepts mark a paradigm shift; a novel way in which companies can design their supply chains for sustainability going forward.

This article by Morai Logistics explains what a circular supply chain is, how it works, and why its significant.

What is it?

A circular supply chain is a supply chain that is geared around reusing its ostensible waste materials as well as its returns. It aims to take these materials and returns and convert them into new products that they can sell once more. Thus, it marks a shift for supply chains. A shift in which waste as its traditionally known no longer exists or is kept to a bare minimum. Naturally, this also means near-perfect sustainability.

An article by Trade Ready elaborates further on the nature of circular supply chains and what they look like,

A circular economy is alternative to the traditional linear economy (make, use, dispose) in which we keep resources in use for as long as possible, extracting the maximum value while the product is in use. When the product has reached the end of its life-cycle, then core materials are recovered and regenerated. The circular economy is waste-free and resilient by design.

Why is it Important?

It is a new model for supply chains because, by its very nature, it fulfills a need companies are desperately trying to meet. That being the above mentioned need for sustainability. It flips many previous intuitions on their head. In a circular supply chain, there’s value in waste. Where waste is normally seen as a source of weakness, a circular economy makes it a resource. A resource that’ll translate into more products.

Moreover, its not only a forward-thinking model in terms of its outcomes, but also in its management. Crucially, it marks another step towards the marriage of technology and supply chain practices, as digitization is key in enabling a circular supply chain. With that in mind, perhaps the next big thing in supply chain technology could be an all-encompassing system that enables companies to ‘go circular” as currently they have to adopt several technologies to do so.

A recent post by Supply Chain Digital emphasizes both the points above,

“The circular economy creates an ecosystem of materials,” commented Sarah Watt, senior director analyst with the Gartner Supply Chain practice. “What was previously viewed as waste now has value. However, those ecosystems are complex and include many interdependencies and feedback loops. Digital technology has the potential to provide visibility and enable improved decision making when it comes to raw materials and services”…study showed that there is no ‘all purpose technology’ that will enable an organisation to develop a circular economy, it is a combination of technology that leads to this.

5 Supply Chain Trends to Watch for in 2020

With 2019 coming to an end, it’s important to know what the new year will bring the world of supply chains—here are 5 supply chain predictions for 2020.

The year’s almost over. 2019 saw significant changes for supply chains all across the globe. Technological advancements continued coming in thick and fast. Additionally, several preexisting innovation picked up steam. Going forward, many of 2019’s develops are set to continue into 2020. On the other hand, several supply chain changes that come next year could be entirely novel. It’s impossible to know for sure, but there are certainly some indications one way or the other.

This article by Morai Logistics highlights 5 of the most prominent supply chain trends to be mindful of in 2020.

Going Green

More than ever companies will need to make their supply chains green. That means bringing down their carbon emissions and waste. Not only will this be critical for pleasing consumers but also in avoiding sanctions by governments. Furthermore, having a more sustainable supply chain means reducing inefficiencies, further reducing costs.

An Industry Week article further expounds on the value of a green supply chain,

Transportation is the second largest source of greenhouse emissions after electricity generation, Lapide noted. He said companies need to develop energy efficient transportation operations, greatly enhance their reverse logistics capabilities, move toward green product design and take a holistic view of supply chain compliance as they become aware that their image in the marketplace depends not just on their own operations but their whole supply chain.

Focus on Integration

With technology becoming an ever-increasing factor for supply chains, integration is going to continue to be crucial going forward. In fact, even more so than before. As the number of supply chain innovations grow, it’ll become even more important to consolidate them. In turn, as data continues to be an increasingly valuable commodity for smart supply chains, integration will ensure it’s all collected and stored in the same space.

Blockchain’s Gradual Increase in Significance

Blockchain technology hasn’t quite arrived with the impact some predicted. Quite clearly it’s a promising technology, but it needs time. 2020 won’t necessarily be its breakout year, but it should be another year where it makes steady gains. There will be particular focus on TradeLens. It being the most comprehensive and highly adopted blockchain platform in the field of shipping and logistics. Ultimately, the demand for visibility and transparency in supply chains is only going to grow more pronounced. As such, blockchain isn’t going anywhere.

Automation and its Consequences

Automation is only going to become more prominent with each passing year. With that said, that move towards a less human supply chain might have costs in the short term that will become apparent over the course of the year. After all, digitization which is a prerequisite for automation, is extremely expensive and takes time to adjust to.

Trade Ready’s post explains why digitization can be detrimental to companies in the short term,

While many companies are moving to an increasingly digital workflow to reduce costs, in my opinion going digital is itself a big cost as investing in technology would be. While it will be beneficial at some point, investing in infrastructure and training humans will help to increase the productivity of supply chain and eliminate the additional cost of maintenance.

Smarter Warehouse Management with IoT

The internet of things (IoT) is integral to the earlier mentioned integration. When it comes down to smart warehouse management, having devices continually connected to the internet and giving constant feedback is vital. They allow warehouse managers to know the state of their inventory and track the performance of their operations.

TradeGecko emphasizes the importance IoT is set to have in integrating and boosting the productivity in warehouses,

That being the case, supply chain technology will likely become not only more integrated with other such tools, but will also become more specialized, as well. Supply chain teams that adopt this highly-integrated and specialized technology moving forward, then, will almost certainly spur a massive growth in productivity throughout their processes.

The 7 Greatest Obstacles Supply Chains Face Today

As supply chains continue to get larger, they also continue to get more complex and complicated, leading to a number of challenges that they have to overcome.

Today’s supply chains are facing a whole host of new demands and hurdles. Supply chains are larger than ever. Not only that, they’re more sophisticated than ever before as well. While both of these things have a number of upsides, numerous obstacles arise as a result of them. Growth and progress come with difficulty, after all.

Blume Global highlights some of the ways modern supply chains have to evolve to the new demands placed upon them,

The modern supply chain must evolve to meet new demands and supply chain challenges, and supply chain managers need to plan ahead to keep everything flowing smoothly. A combination of consumer expectations, more routes to market, international complexities and other factors creates significant challenges throughout the supply chain network.

This article by Morai Logistics covers the 7 biggest challenges supply chains are currently facing.

Technology

With the rapid advancements in technology pertaining to supply chains, not integrating them is a considerable liability. Whether it be artificial intelligence, machine learning, automation, or some other innovation, they are all critical to running an optimal supply chain. More broadly speaking, that’s why digital transformation is such a fundamental part of the modern day supply chain.

Cybersecurity

With that being said, taking your supply chain digital also brings about further risk. It opens up your operations to the threat of hacking and other cybersecurity vulnerabilities. These can slow down down, disrupt, or halt the running of a supply chain. Thus, it’s of the utmost importance that, when digitizing, companies also secure their new technologies. This includes vetting their partners and vendors.

Forecasting

Given the previously mentioned increased size and complexity of the modern day supply chain, forecasting is more important than ever. As such, companies have to be as precise as possible with their supplies to meet customer demands.

The Houston Chronicle explains,

Proper forecasting helps ensure you have enough supply on hand to satisfy demand. An overestimation of demand leads to bloated inventory and high costs. Underestimating demand means many valued customers won’t get the products they want.

Overseeing Inventory

Tying into forecasting, is the need for the management of inventory. In order to have the adequate amount of supplies on hand to satisfy demand, companies need to be able to closely track their inventory. With that being the case, having proper count, visibility, and quality assurance of inventory is critical in today’s market. In order to meet these requirements, companies need to invest in the proper inventory management software and technology.

Market Expansion

Companies looking to grow will have a harder time than ever in today’s market. A company that expands its supply chain to new regions has to contend with a variety of issues. This includes new policies, cultural impediments, governmental incentives and disincentives, political instability, weather, and more. Without covering all these bases, a company is destined for failure.

Customer Service

Due to the all technological advancements mentioned earlier, customers are more particular in their demands than ever before. They want their orders delivered faster, with greater care, and for less. And it’s up to companies to cater their supply chains to those demands. In turn, however, through the utilization of technology such demands are more feasible than ever too.

Globalization

Finally, in many ways, globalization’s central to many of the obstacles outlined here. The market’s gotten larger, more interconnected, and complex. With that comes uncertainty, confusion, and externalities that are hard to prepare or mitigate for. Thus, companies have to account for these factors when constructing their supply chain strategies.

5 Ways the Cloud is Improving Supply Chain Management

As the demands placed upon supply chains become greater, new innovative mechanisms will be necessary to respond to those pressures—here’s how the cloud is addressing them.

The expectations placed upon supply chains are higher than ever. As a result, there’s a need for even stronger supply chain management. In turn, more powerful management platforms are needed. And, in response, many companies are turning to cloud computing to help deliver their management needs. Unlike some other recent technological innovations, cloud technology is already delivering the results.

Hunter Lowe from Select Hub emphasizes this,

Ask a supply chain executive about cloud computing, and they only want to know if it can deliver more speed, scale and accuracy. None of them care about the technology; all they want are results. Cloud applications and platforms are the growth catalysts that will keep improving supply chain performance…

This week’s article by Morai Logistics highlights 5 key ways in which clouds are making supply chain management better.

Flexibility

One of the most important things a modern day supply chain needs is the ability to adapt and grow. Not only that, but be responsive to the forces influencing it. By taking a cloud-based approach, managers gain access to easy scalability. Since clouds are hosted on the internet, they have no physical limitations placed upon them. What this means is supply chains can shrink and expand according to what’s required of them.

Low-Cost

Cloud technology, in comparison to the alternatives, is a fairly cost-effective avenue for supply chain management. First of all, it generally has an affordable installation fee, even for smaller businesses. Moreover, the subsequent costs associated with it are flexible due them being subscription fees that vary depending on the package a company selects.

In contrast, management softwares can have large implementation costs and be difficult to build upon. Not only that, but cloud’s save companies money down the line as well. By being able to host the latest and greatest technological advancements, cloud’s can make previous operational procedures cheaper via machine learning and automation.

Secure

This might be surprising to some, given the concerns about cloud-based security. However, it’s becoming increasingly clear that it’s not clouds themselves that are typically a security concern, it’s the practices around using them. As Gartner reported earlier this year,

Gartner estimates that the majority of cloud security failures will be the fault of the customers through 2023.

Gartner’s Peter Firstbrook further broke this down,

Organizations must invest in security skills and governance tools that build the necessary knowledge base to keep up with the rapid pace of cloud development and innovation.

With that in mind, with the necessary investment and skills, data security on the cloud is not only not a liability, it’s actually a strength.

Easy Integration & Connectivity

Supply chains today can be very large and unwieldy. Consequently, it’s critical that the systems used to manage them can tie together all their disparate parts. This requires systems with visibility, connectivity, and the ability to integrate the various networks that make up the supply chain.

Cloud computing is such a system. It allows for fast integration, can host a variety of different softwares and networks, and enables all this in real-time. Furthermore, as a result of being online, the cloud can keep all parties in a supply chain up to date on its latest developments.

Accessible

Finally, the concern with any new technology, especially one that will be as foundational as a cloud, is how complex it is. In turn, how this complexity might be a barrier to easy use. There needn’t be any such concern with cloud-based approach however. As an article from Supply Chain 24/7 explains,

In addition, there are numerous efficiency benefits, including simple and intuitive user experience, quick access to accurate and timely analytics, social collaboration tools, and much more – all of which can be accessed anywhere, at any time, and from virtually any device.

Supply Chain - Overcoming Extreme Weather

A critical component of supply chain management is planning around risks that can compromise the chain, and few risks are more disruptive than extreme weather.

In a time when the ill-effects of climate change are being felt around the world more than ever, supply chains have to mitigate for those effects to function year-round. Of course, what makes extreme weather so troublesome for supply chains is that it’s unpredictable and can come in many forms. With each form—flooding, storms, freezing temperatures, etc.—coming with its own host of problems. It’s imperative then that supply chain managers help form their chains with the possibility of extreme weather in mind and plan accordingly.

Resilinc spoke about this and the importance of planning around disruptive weather in their blog,

Bad weather tests the agility and resiliency of even the best supply chains. However, companies that manage weather-related disruptions as part of their event-monitoring best practices and supply chain risk management strategies tend to fare better than those that don’t take preventative measures, Resilinc’s work with customers shows.

This article by Morai Logistics highlights some of the key ways that supply chains can navigate the risks of extreme weather.

Have a Back-up Plan

At times the weather event that hits a supply chain will be too great to overcome. No amount of resilience can overcome a hurricane, for instance. This is when it’s crucial to have an additional plan in reserve. So, in practice this could look like a warehouse being impacted by bad weather. And, in response, those in charge of the supply chain having some spare carriers ready at another warehouse (at a separate location) with the same product.

While this is an additional cost, considering the physical and reputational damage bad weather can inflict, it’s a necessary one. Not only that, but, in the long run, a potentially cost-saving measure too.

Embrace Technology

There’s a variety of technology that helps supply chains work around or anticipate extreme weather. Foremost amongst this technology is artificial intelligence, particularly machine learning. Via machine learning supply chain companies can gain access to data regarding internal and external risks, including weather.

This means having the latest information about the weather as well as the most precise predictions possible regarding it. Thus, through this technology supply chain companies can potentially avoid extreme weather by anticipating it. Or, at the very least, they can start planning for the weather as soon as possible.

Flexibility

A supply chain needs the ability to maneuver whatever comes its way. This is true in general but especially so with extreme weather. There will be instances where the weather isn’t so bad that the supply chain is completely brought to a halt. Rather, more often than not, the weather will require supply chain adaptations to still function. These can be as simple as taking a slightly altered route.

This point was emphasized in a Supply Chain 24/7 article about El Niño,

The key to riding out a situation like El Niño is to have a supply chain that is flexible enough to adapt. With an efficient and accurate inventory process, you’ll know what must be shipped by air and what can wait the extra week to arrive via ocean.

Robust Infrastrucure

Even with great technology, planning, and flexibility, each facet of a supply chain needs to be strong enough to deal with harsh weather conditions to some extent. For example, a supply chain’s warehouse should be able to withstand strong wind without being breached. Or, its production facility should have a variety flood-proof installations so that a flood has minimal impact upon it. In turn, when the products are being transported they might need to be temperature controlled. All in all, each step of a supply chain needs to have resiliency. So it can handle whatever weather conditions it might face.