Disrupted supply chains need fixing.

Disrupted supply chains can wreck your business.

Disrupted supply chains are everywhere; it’s a killer punch.

For many, the combination of poor sales and disrupted global supply chains (value chains) is leading to significant crises. The COVID-19 pandemic should be a wake-up call for all owners and managers. Consider actions which will ensure resilience to future shocks.

Because of the central role Chinese manufactures play in the global supply chains, COVID-19 has had a significant impact on the smallest towns and villages everywhere. The disruption is particularly acute in electronics, car industries, pharmaceuticals, metals, and a wide range of consumer and industrial products. 

Globalisation has been set back on its ear when it comes to disrupted supply chains.

The good things I can see is manufacturing coming back to Australia with more attention to entrepreneurs, innovative businesses and regional communities. Though the world has changed, now isn’t the time to hit the pause button on your business. Instead of panicking, you can make a plan and move forward. You can surround yourself with support and positivity.

Containing COVID-19 has devastated the economy. It’s a brutal trade-off, inducing massive economic suffering to save human lives. Many experts conclude the containment measures are not only economically justified, but they’re also the only way to ensure people will change their behaviour enough to minimise the full cost of the virus.

Often the first place to experience disrupted supply chains is in the supermarkets.

With goods of high value relative to their size and shipping cost, has made sense to manufacture them in a low-cost region and ship them. A steady decline in those costs, along with improved efficiency in international transportation has encouraged many companies to shift to a global sourcing business model, allowing them to take advantage of lower input costs. Well, now we are all going to pay for it.

The disruption unleashed by the COVID-19 pandemic has highlighted supply chain risks on an unprecedented scale. Nobody could have foreseen what would happen when the world’s second-largest economy shut down external logistics connections.

What the current situation exposes are the risks associated with supply chain (value chain) fragmentation and globalisation have been unpriced and largely ignored. For many companies, the combination of lean production and global supply networks is leading to their current problems and frustrations.

Supply chain management is vital when building a new future.

What if there was a more abundant future for you? What if you could create, sell and serve your customers online with world best practice. Wouldn’t it make an extraordinary difference just when it’s needed most?

You need to understand your strategic vulnerabilities. Relying on suppliers with unique capabilities presents serious challenges, and no one is exempt. You need to start rethinking your scaling, and product mix. Keep in mind the disruption is likely to last many months if not years.

Improving outcomes is about making more sense of complex business processes. Start by adjusting the operational aspects of the organisation, including communications. Contact us for a checklist of questions you might ask to overcome the disruptions you are experiencing, https://faqsupport.com.au/contact-us/

Key Message: The wake-up call has arrived with the COVID-19 pandemic. How did we all end up with such complex interdependency in our supply chains? What should we be thinking about now?

Quotable Quotes

“The hardships and sacrifices which we will experience will undoubtedly overturn the best-laid plans in the months ahead. But we must respond to any adversity so it will not dampen our creative spirit”. Peter Sergeant

“In times of adversity, it’s time to analyse and rethink your Value Chain. Start making adjustments for a better future”. Peter Sergeant

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