Supply chain on the brink? The delivery difficulties and solutions

Plan games and possible scenarios of the past few decades created possible horror olders, which nobody really wanted to believe in Europe, especially in Europe. A pandemic that lasted for years? A war in Europe? Unimaginable, impossible! On smaller “war crimes” and “tragic crises” far from our “western civilization” you could still get involved and that our technology and logistics would already judge this. We are strong, it will be. But it is not.

We recently wrote about it: “As already described countless times, globalization has greatly strained the supply chain structure and made it sensitive to outside of its sphere of influence and unexpected crises. Likewise, also strategically not sensitized in the relatively short time. This means that there will be no relaxation along the supply chain in logistics such as intralogistics in sight. ”

Now it's time to act. If you do it now, it's late – and that's quite a few! As early as 2012, 16.2 % of the companies surveyed stated that they have no solutions and strategies in supply chain risk management. At the latest now a reaction should take place, because the current situation will stop. And what many don't even consider: the risk of a chain reaction and possible consequences of further crises are real. Can someone seriously say that was it now?

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

• Increasing security stocks – buffer warehouse
• 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
• Expansion of the supply chain visibility – The visibility of the supply chain (Supply Chain Visibility, SCV) is the option of tracking the delivery on your way from the supplier to the manufacturer to the 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 (without construction) – 49 %
• Building industry – 34 %
• Trade (including car repair) – %
• Services (without trading) – 21 %

Medium size

• All industries – 32 %
• Industry (without construction) – 35 %
• Building industry – 44 %
• Trade (including car repair) – %
• Services (without trade) – 27 %

Small scope

• All industries – 16 %
• Industry (without construction) – 12 %
• Building industry – 16 %
• Trade (including car repair) – %
• Services (without trading) – 20 %

No, not affected

• All industries – 16 %
• Industry (without construction) – 4 %
• Building industry – 5 %
• Trade (including car repair) – %
• Services (without trade) – 31 %

Supply chain – increase in 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

• Production of security of supply – 72 %
• Continuous planning processes – 65 %
• Flexible manufacturing and assembly network ** – 61 %
• Management of new product introductions – 44 %
• Customer orientation through supply chain segmentation – 34 %
• Standardized supply chain structures – 21 %
• Slim processes – 20 %
• Personnel and talent – 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 the supply chain of companies – 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 %
• Flexibilizing structure – 61 %
• Adjust 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 %
• Increase security stocks – 27.9 %
• Structure/expansion supply chain management with competencies – 26.5 %
• We currently have no solution – 16.2 %

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