How are supply chains holding up under the stresses of COVID-19? How are companies preparing their supply chains for the future? As manufacturing endures a difficult year, these are key questions for all of us.
Fortunately, the new 2020 Digital Supply Chain Survey—a research initiative from Grant Thornton, the Manufacturing Leadership Council and the NAM—is here to tell us what we need to know.
The good news: While COVID-19 has caused widespread disruption in economic activity—and three-quarters of survey respondents reported some level of supply chain disruption—60% of respondents say that the disruption was only “minor.”
Still, according to the report, “around half had to rapidly reforecast demand, almost a third had to reduce production and two in five began to identify new suppliers as their existing global networks tried to cope with the initial disruption.”
The growth areas: The survey also identified a few areas where companies need to invest or make further progress:
- There’s room for growth in identifying supply chain risks (only 23% of companies called themselves “very capable” of doing so) and in accelerating digital maturity (just 17% of companies say their supply chains are fully integrated).
- More than half of companies—approximately 53%—say they are already beginning or considering redesigns of their entire supply chain processes.
Transformational tech: Companies are increasingly focused on making use of new technologies like artificial intelligence, machine learning systems and advanced analytics that would allow them to respond better to challenges—from shifts in markets to disasters like COVID-19.
The bottom line: “While transformational initiatives were already underway in many manufacturing supply chains before the COVID crisis, the lessons learned so far this year have clearly given those plans a new sense of urgency and a clearer focus for the years ahead.”