SUPPLY CHAIN APRIL 2020
RISING PRESSURE
How companies can ensure the resilience of their supply chains during
the coronavirus outbreak by automating key steps along the way
BY DAVID GROSVENOR, MANAGING DIRECTOR, TRUECOMMERCE (EUROPE)
In recent years, the advancement of supply
chain technology has made automation an
increasingly competitive point of diff erence
for manufacturers and the way they work with
their trading partners.
However, in these unprecedented times
– where the need to supply essential products
has rapidly come to outweigh the notion of
manufacturers and distributors competing with
one another – automation has perhaps never been
more important.
Indeed, the news of empty supermarket
shelves and online delivery services shutting up
shop following the immediate outbreak of the
coronavirus has served as a stark reminder that
even the slickest supply chains can be outrun
without fair warning.
Working with major UK retailers, product
manufacturers and their supply chains, it’s
clear that everyone involved in getting goods
from factory fl oor to till point is working
around the clock to meet
demand and support the
needs of society as the
pandemic evolves.
chains are demonstrating
But, while most supply
their resilience, each is only
as strong as its weakest link
when reacting to exceptional
levels of demand. Regardless
of the size of the cog,
integrating every piece of the
puzzle is essential to the success
of the overall picture.
With that in mind, reviewing the effi ciency
of production lines and subsequent distribution
channels is an imperative for our time.
Automation and seamless data interchange
have never been more important.
The positive news is that automation and
integration is already front of mind for those
who have been looking to boost productivity
and output long before recent developments.
Indeed, before the challenge of coronavirus,
TrueCommerce’s own research indicated a
huge desire among businesses to digitise their
supply chains. Our survey of 700 European
manufacturers and retailers explored the state of
play to fi nd that more than three-quarters (79%)
of those businesses want to trade electronically
with their entire supplier base.
While as few as
actually achieved the
holy grail of digitising
all interaction with
its supply chain, the
one in every 20 has
fi gures suggest that the average
manufacturer already trades
electronically with 57% of its
supply chain.
The numbers indicate that
the sector is well-invested
in automation but that
implementation is – at best –
patchy. As such, gaps still exist
that will be having an impact
on the all-important window
between products travelling
from manufacturer to the end
user. It is these gaps – which
could be as simple as a data
bottleneck caused by the need
for manual input – that can
lead to demand outweighing
pace of distribution.
Limited fi nancial resources
and concerns regarding Brexit
have undoubtedly played
their part in slowing the
growth of automation among
manufacturers in the last
four years. However, the
most common pitfall among
those we spoke to related to
the level of digital skills
needed to implement new
technology eff ectively.
Alongside the stresses upon
our healthcare system, plugging
these knowledge gaps will be one
of the major challenges posed by
coronavirus should it continue
to have a dramatic impact on
consumer behaviour.
mrallen / stock.adobe.com
Gorodenkoff / stock.adobe.com
The coronavirus
pandemic is
placing supply
chains under
unprecedented
strain
79%
of manufacturers want
to trade electronically
with their suppliers
24 www.manufacturingmanagement.co.uk
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