1st Step: Transparency & visibility during the restart phase
22-04-2020
  • Case Study & Testimony

Transparency & visibility during the restart phase

This new normal is now mandatory. As explained in the previous article, it will impose new economical & social behaviors. Let’s be focused on the key actions for the Supply Chain managers.

We defined 6 main actions to set up in the global value chain to recover the activity.

The first step is to create transparency in the full value chain, what does it mean?

To begin to build a complete Supply Chain vision with multiple levels, you should identify the critical component of your industrial activity. When you work with your teams, first analyze your bill of material, pegging list of the (critical) component, consumed volumes, and identify the one who is shipped from the risky zone and which doesn’t have an alternate. We could guess to set up a risk index for each BOM’s component, based on the unit & location of your suppliers, it would help to classify the risk and prioritize actions.      

Once, critical events have been identified, you should be focused on the most important interruption risk. This step means to ask to the risky node on your supply chain to assess their own network/supply chain. It means also to create unusual bridges inside the same supply chain. The success key is to be focused on critical product and share information on real demand, inventory on the global chain. It means transparency, reliability & patience.

If all these conditions are not combined, what is the methodology to set it up?

From my experience, I think all industrial sectors have leading indicators which allow us to anticipate these kinds of phenomenon. And moreover, it’s essential to gather sales, supply chain, marketing services. Most of the time they have the answer to understand market behaviors.

The sales of commercial aircraft in a geographical area are linked to the zone’s GDP. Drug sales are related to doctor’s prescriptions… The target is to find the relevant indicator for your activity. The artificial intelligence helps to find correlation or causality.

Don’t forget that in crisis management, we are all in the same boat and we will find a way to cope thanks to transparency, collaboration, and quick actions. We can see it today with solidarity actions to help a common cause.

Take the bet our Supply manager will be the conductor of the value chain & will know to be supportive, transparent & with cool head…

 

Philippe Bornert, AGILEA CEO