Did Covid change Global Sourcing Strategies?
COVID-19 certainly changed our lives in many ways… health, jobs, family, lifestyle, and everything else. But what impact did the global pandemic have on how companies make purchasing decisions? What changes have sourcing professionals implemented now that things have “gotten back to normal”? Here’s some of the recent trends…
- Dependence on a single supplier or country is risky: Many companies had become heavily reliant on a single supplier or country for their goods, which proved to be a risky strategy during the pandemic. When China shut down its factories and ports, for example, many businesses that depended on Chinese suppliers were left without the products they needed.
- Diversification of suppliers and supply chain is important: To mitigate the risk of disruptions, diversification of suppliers and supply chains is critical. This means identifying and developing relationships with multiple suppliers and building redundancy into the supply chain.
- Visibility and transparency are crucial: The pandemic highlighted the importance of visibility and transparency in supply chains. Companies need to know where their products are coming from and who their suppliers are, so they can quickly respond to disruptions.
- Agility and flexibility are essential: The pandemic showed that supply chains need to be agile and flexible. Companies that were able to pivot quickly to alternative suppliers, modes of transport, and production processes were better able to weather the disruptions.
- Resilience planning is necessary: Resilience planning is critical for businesses to survive and thrive in the face of unexpected disruptions. Companies need to identify potential risks, assess their impact, and develop contingency plans to mitigate them.
Overall, the pandemic has highlighted the need for businesses to reassess their supply chain strategies and develop more resilient, diversified, transparent, and agile supply chains. Total Plastic Solutions worked hand in hand with our customers through these difficult times to minimize any impact to their bottom lines. TPS looks forward to hearing from sourcing professionals looking for a supplier to help solve their next complex engineering problem with an elegant contract manufacturing solution.
For more information contact Jay Haverstraw via email.
