The world has suddenly changed due to the pandemic. Consumers are in a panic and have lost trust in the supply chain. Business for some people has come to a sudden halt. Others have slowed and some are experiencing a sales spike especially eCommerce Online Retailers. My wine seller at Vinomofo told me they had one of their best sales weeks ever last week. Good or bad the new, but temporary, normal is impacting your supply chain and your logistics operations. In my first ever vlog post I present my tips for dealing with the uncertainty and fear that comes with sudden change.
Panic or trust what is happening to the supply Chain?
- What does it mean for the Supply Chain?
- Crisis behaviour
- The world has not stopped – you shouldn’t either
- Panic buying leads to dumping
- Demand spike now may reduce demand later
- Social Distancing = eCommerce
- Beware the Bull Whip Effect
- Some demand will never be repeated
- Net demand over time has not changed
- Availability trumps price and marketing
- Clean up your slow moving and obsolete stock
- Erratic supply of some items
- Need for speed
- Product slotting now while it’s quiet
- Accelerated eCommerce
- The future supply chain is personal
- Small order fulfilment technology
What’s happening to freight?
- Road freight OK
- Sea freight OK
- Air freight capacity significantly reduced
- More expensive
“When you are going through Hell, keep going!”