Supply chain on the brink? The delivery difficulties and solutions

Simulation games and possible scenarios of the last decades created possible horror consequences that no one really wanted to believe in anymore, especially in Europe. A pandemic that lasts for years? A war in Europe? Unimaginable, impossible! People could still get involved in smaller “war crimes” and “tragic crises” far away from our “Western civilization” and our technology and logistics would take care of that. We're strong, we'll be fine. But it is not.

We recently wrote about it: “As has already been described countless times, globalization has put a lot of strain on the supply chain structure and made it vulnerable to unexpected and unexpected crises beyond its control. But also in the relatively short time there was no strategic awareness. This means that there is no relaxation in sight along the supply chain in logistics or intralogistics in the future either.”

Now it's time to act. Anyone who does it now is late - and there are quite a few of them! As early as 2012, 16.2% of the companies surveyed stated in a survey that they had no solutions or strategies for supply chain risk management. A reaction should be made now at the latest, because the current situation will continue. And what many people don't even consider: the danger of a chain reaction and the possible consequences of further crises resulting from it are real. Can anyone seriously say this is it?

The solutions are actually simple, but the implementation requires quick action, a lot of energy and work - and, above all, a long-term orientation:

• Increasing safety stocks – buffer stock
• Regional decentralized warehouses/logistics centers
• Regional logistics distributors (microhubs)
• Use of high-bay warehouses or automated pallet high-bay warehouses (HRL)
• Suppliers in different regions, avoiding single sourcing
• Establishment/expansion of supply chain management with skills
• Expanding Supply Chain Visibility – Supply chain visibility (SCV) is the ability to track the supply as it moves from supplier to manufacturer to consumer

Another important point for the supply chain is increasing flexibility:

• Establishing security of supply
• Consistent planning processes
• Flexible manufacturing and assembly network
• Management of new product launches
• Customer focus through supply chain segmentation
• Unified supply chain structures
• Lean processes
• Human resources and talent management

Supply chain flexibility:

• Manage supplier risk better
• Plan holistically
• Make construction more flexible
• Adapt product strategies faster

Suitable for:

• The impact on key industries: what you need to do now
• 7 points and a chance: That force us to rethink
• Supply chain optimization: New logistics strategies, including digital twins

Is your company currently affected by delivery difficulties? – Image: Xpert.Digital

At the beginning of 2022, 49 percent of the industrial companies surveyed stated that they were currently experiencing significant delivery difficulties. However, 31 percent of the service companies surveyed stated that they are currently not having any delivery problems. International production and delivery processes have been massively affected by the corona pandemic, and there is an acute supply bottleneck of primary and end products in many industries.

Survey on delivery difficulties among companies by sector in Germany 2022

Significant scope

• All industries – 36%
• Industry (excluding construction) – 49%
• Construction – 34%
• Trade (including vehicle repair) – 47%
• Services (excluding trade) – 21%

Medium size

• All industries – 32%
• Industry (excluding construction) – 35%
• Construction – 44%
• Trade (including vehicle repair) – 36%
• Services (excluding trade) – 27%

Small scope

• All industries – 16%
• Industry (excluding construction) – 12%
• Construction – 16%
• Trade (including vehicle repair) – 12%
• Services (excluding trade) – 20%

No, not affected

• All industries – 16%
• Industry (excluding construction) – 4%
• Construction – 5%
• Trade (including vehicle repair) – 5%
• Services (excluding trade) – 31%

Supply Chain – increasing flexibility – Image: Xpert.Digital

The topic is not that new, as a survey from 2011 shows. The results of the survey show which starting points are considered important for increasing the flexibility of supply chains. 18 percent of those surveyed see personnel and talent management as an important lever for increasing flexibility.

Survey period: February to April 2011

• Establishing security of supply – 72%
• Consistent planning processes – 65%
• Flexible manufacturing and assembly network** – 61%
• Managing new product launches – 44%
• Customer focus through supply chain segmentation – 34%
• Unified supply chain structures – 21%
• Lean processes – 20%
• Human resources and talent management – ​​18%

Around 150 companies from the automotive, mechanical engineering, electronics, telecommunications and consumer goods sectors were surveyed. ** Including all value creation partners. Multiple entries were possible.

Starting points for greater flexibility in companies’ supply chains – Image: Xpert.Digital

The topic was current exactly 11 years ago! The statistics represent the starting points for greater flexibility in companies' supply chains. The source does not provide any information on the number of respondents.

Starting points for greater flexibility in companies' supply chains in 2011

• Manage supplier risk better – 72%
• Plan holistically – 65%
• Make structure more flexible – 61%
• Adapt product strategies faster – 44%

Strategies for supply chain risk management – ​​Image: Xpert.Digital

This statistic shows important strategies for supply chain risk management in companies in 2012. Around 28 percent of the companies surveyed considered increasing safety stocks to be important in supply chain risk management. Multiple entries were possible.

Important strategies in supply chain risk management for companies in Germany in 2012

• Suppliers in different regions, avoiding single sourcing – 59.6%
• Expansion of supply chain visibility – 48.5%
• Increasing Safety Stocks – 27.9%
• Establishment/expansion of supply chain management with skills – 26.5%
• We currently have no solution – 16.2%

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