A methodical approach to rebuilding your supply chain
Until a few years ago, the key metric for supply chain leaders was efficiency. The term efficiency referred to three key factors — quality, cost, and delivery (QCD).
QCD was the holy grail of supply chain effectiveness, and supply chain management leaders tracked metrics related to these factors very closely. Of course, globalization was a key factor as well, and organizations embraced the fact that you could source from anywhere in the world.
But over the last few years things have changed a little bit. There were several global trends that started affecting supply chains. Thanks to a constantly shifting regulatory environment, there was a lot more complexity in global trade. Additionally, the volatility of commodity prices and increased interdependencies in supply chains caused a lot of pain for supply chain leaders.
Amidst these trends, the COVID-19 pandemic took the complexity to another level. A recent McKinsey article titled ‘The future is not what it used to be: Thoughts on the shape of the next normal’ touched upon this topic of how globalization is now facing more resistance and how ‘Distance is Back’. The localization of supply chains is taking off, slowly but surely.
Also, manufacturers need to deal with highly elastic demand, which means supply chains have to become highly responsive and elastic to frequent demand fluctuations.
Needless to say, resilience is key to bouncing back from the pandemic. But, traditionally, we’ve embraced just-in-time supply chains wherein efficiency was brought in by carefully cutting costs across the supply chain. But in today’s times we need backup and safety measures. Just-in-time will not work. Supply chain and quality leaders are looking to qualify suppliers who’ve embraced digital transformation and automation to drive efficiency, agility, and nimbleness.
They want suppliers who’ve managed to bounce back from the disruption and have taken safety precautions to restart operations. In short, they’re gearing up to rebuild their supply chain. This could mean both requalifying old suppliers and onboarding new ones.
Recently, Salesforce invited ComplianceQuest to join the Work.com initiative as an AppExchange partner, enabling us to share our passion and expertise in quality, safety, and compliance management to help businesses reopen.
Through Work.com, we have created a solution for organizations to zero-in on specific components that are needed pre and post supplier qualification, which is the definite identification of your critical suppliers. Today, that’s mostly done through emails and phone calls, and the data is not consistent, nor does it roll up across the organization. Information may be available, but without data rolling up, an organization cannot have a clear dashboard to understand to what extent your supply chain is ready.
In addition to the app, we also put together a whitepaper that offers a step-by-step guide to rebuilding your organization’s supply chain.
We suggest a 7-step approach to redesigning and rebuilding your supply chain for the future:
- Answer the “what next” question for your enterprise
- Identify old suppliers to re-board & new suppliers to on-board
- Initial Assessment
- Audit & Verification
- Deficiency Mitigation
- Continuous Improvement
For a more detailed understanding — read the whitepaper here.
The vision at ComplianceQuest is to transform quality and compliance into a strategic advantage for our customers through experience, expertise and passion. ComplianceQuest is an innovative, 100% cloud based Enterprise Quality Management System solution company. We provide an enterprise grade solution that streamlines quality, compliance, content and collaboration management initiatives and strategies across diverse, globally based supply chain networks.
For more information, or to request a demo with a ComplianceQuest expert, contact ComplianceQuest today.