Here are some recommendations of how companies can thrive with all the disruptions taking place in the field of supply chain and change their procurement strategies to keep up.
- How to plan for impacts of automation and migration of workforce
Mass migration on a large scale, along with forecasts that significant numbers of workers will be displaced by automation, will increase volatility in supply chain labor dynamics. This volatility could be mitigated through responsible and inclusive labor practices. Companies with supply chains that expect significant uptake of automation through 2025 could insist that key suppliers develop clear plans to support a sustainable workforce transition.
- How to build responsible regional sourcing hubs
Growth in new markets and demographics and meeting customer demands for customized, on-demand goods and services will require understanding and meeting new consumption patterns and preferences, as well as providing goods and services in new locations and formats. In response, supply chain leaders will have an opportunity to develop nimble, regional supplier networks that can meet both commercial expectations and sustainability aspirations.
- Digitalize Supplier Assessment and Engagement
With more data about supply chains produced and disseminated than ever before, supply chain leaders have the opportunity to rethink how they collect and interpret supply chain information. Practitioners will need to hone in on the supply chain information that is decision-useful in a sea of available data and dashboards and will need to reconsider which data they need to commission and how it is collected.
- Strengthen Supply Chain Transparency and Disclosure
The regulations that shape mandatory corporate disclosures about sourcing practices, futuristic supply chain leaders can prepare for a variety of possible future scenarios through enhancing both visibility into supply chain practices and disclosures about those practices. Enhanced transparency will support supply chain leaders in the case that global trade is transformed by political shifts toward economic nationalism.
- Embed Climate-Smart Supply Chain Planning
To prepare for the environmental changes and other supply chain risks that come with it, companies will need to take into account climate risk and preparedness into supply chain planning models, seek alternative materials and resources where necessary, and look for new ways to secure supply and minimize disruptions in their supply chains.This would also mean working with suppliers that share a commitment towards climate awareness and action.
Future of Supply Chains 2025: Blog. (n.d.). Retrieved from https://www.bsr.org/en/our-insights/primers/future-of-supply-chains-2025.
- How can companies plan for shifts in procurement trends?
- How will climate-smart supply chains be useful in the future?
- How will regional sourcing hubs be useful?