Supply Chain Optimization

Endemic COVID 19 Will Force Changes On The Supply Chain

What if the COVID-19 pandemic turns into being endemic COVID 19?  With variants emerging and vaccines one step or more steps behind, this is starting to sound like a more potent version of the flu – something to be grappled with for a long time – just like the flu.  What can this do to the supply chain, and how do you prepare?  Some things others are trying:
  • Stockpile essential supplies:  German carmakers are considering building up semiconductor stockpiles to combat the crippling chip shortages that brought assembly lines to a standstill
  • Move production/distribution closer to the consumer:  Local DCs for e-commerce and near-shoring
  • Start up your own trucking business:  Amazon is training drivers and plans its own
  • Set up a cadence of operations – NOT the Herky Jerky approach to such things as deployment where on any day a factory sends 2 loads to a customer-facing DC – and the next day they send 24 (BTW – that is real data):  The concept of LevelLoading is catching on – https://provisionai.com 
Oil is up 30% since November and will most likely go higher as fracking, and pipelines are in the cross-hairs of the new government. (Good luck in California and the North East)