What to Do to Prepare Your Supply Chain for Coronavirus
The impact of the virus is affecting countries beyond China. From the bridal fashion industry to textile suppliers, stakeholders across the fashion industry have been feeling the effect.
Although the full impact of the outbreak won’t be visible until many months later, companies need to develop a strategy to minimize countries impacted by the virus. This will help create a full picture and decide on the right course of action.
How to prepare your supply chain
Retailers should consider air freighting their inventory to minimize the lead time lost during manufacturing. Supply chain leaders should also note the financial implications of not being able to deliver to customers.
Now, more than ever, retailers, brands, and suppliers need to work together, rather than just dictate the actions to suppliers. It’s important to create a plan hand-in-hand with the supplier to identify what items can be manufactured.
They need to move up incoming orders that are manufactured in other countries. Also, if they haven’t already, companies need to begin building buffer stock and assess opportunities to diversify suppliers.
Implementing AI into your supply chain
- Real-Time Visibility – Based on a Statista survey, 21% of supply chain professionals reported visibility as a significant organizational challenge. With advanced analytics, companies can examine data from various sources and discover connections between processes along the value chain.
- Reduced Response Times – More than 24% of supply chain professionals stated that delivery costs remained one of the most notable challenges for B2C companies.
- Streamlines Production Planning – Since machine learning algorithms that can be trained on existing production data, future buying, customer behavior, and areas of waste that can be better identified
In return, transport processes can be adjusted according to actual demand.
Those that integrate machine learning and big data analytics into the supply chain will plan better and all around, have fewer inefficiencies. AI algorithms can analyze and learn from real-time data, ultimately helping optimize routes for each vehicle and save costs, reduce driving time, and increase productivity.
Nobody can predict an outbreak of a virus. In global supply chains, there is so much volatility that it is impossible to forecast demand 100% accurately, without relying on technology.
While the benefits of machine learning in the supply chain may not be visible until later, businesses should plan for the future and start looking into data solutions today.
With Chain of Demand’s predictive models, retailers can leverage data to receive actionable recommendations that can ultimately help to maximize margins, eliminate overstock, and boost profitability. To learn more about how you can increase prediction accuracy up to 85%, request a free demo.