As the economy slowly starts up again, it has become abundantly clear that the world post Covid-19 is going to be very different. We are facing a global recession which will be much worse than the 2008 recession, possibly even worse than the depression of 1918. To get through this will not be a sprint, it is much more likely to be a marathon.
As we venture into this unknown new world, we know it will push your supply chain to its limits, much like training and running marathons push runners to their limits. So, lets take some learnings from training for a marathon and see how you can apply these to your supply chain.
Commitment
The first thing that running a marathon requires is commitment. You need to be committed to training for at least 3 to 4 months before the marathon, you need to be committed to running multiple times a week, and you need to be committed to at least one long run a week. It also requires changes to your schedule, to your habits and, very importantly, requires support from your loved ones.
This translates to supply chain management needing commitment to doing new things in new ways in this new world, to keep doing it every day and every week for the foreseeable future. Most importantly it requires all the business functions backing up the supply chain, such as HR and IT, to support the supply chain and the changes that are going to be made.
Commitment requires 3 things:
1. Clear intent
2. Timing
3. Dedication
Clear intent, in terms of running a marathon, does not mean: “I want to run a marathon”, it means “I want to run the 2 Ocean’s marathon in 2021”. See how timing plays into this?
Most businesses have a mission and/or vision statement, but you need to, now more than ever, have a clear statement of intent for your supply chain. This statement will ensure that the entire supply chain, and all the supporting functions, understand what the goal is. This will ensure that the cause is understood, which will lead to better dedication through-out the supply chain. The intent and focus will be to push towards the goal, and any actions or resource consumption not leading toward the stated goal must be stopped.
Be clear on the “Why”
To run a marathon, you need to know why you want to do this. It also helps to have a Secondary Goal. The Why and Secondary Goal are required for those days when you just do not want to get up before the sun to run and for those nights when you would rather stay out with friends. The Why acts as a reminder and the Secondary Goal functions as a motivator.
Typically, this would look something like “I want to run a marathon because I want to improve my endurance/push my limits/see if I can do it”. The Secondary Goal could be something like: “I want finish in under 4 hours.”
The primary goal of the supply chain will always be to fulfill your customer needs, while the secondary goal will typically be to address the mission statement of your company. This is the ideal time to revisit both of these, to ensure that the Company Vision/Mission Statement still reflects your values and that the supply chain strategy drives towards this Vision.
Once these have been revisited and clarified, it will ensure that your supply chain team and their supporting functions have a clear reminder of why they are doing this, as well as a good motivator.
Have a Plan
Preparation for a marathon requires a plan. This plan will slowly improve your endurance and your speed and set you up to not only finish the marathon, but to achieve your Secondary Goal. The plan must take into account how much you currently run as well as your goal. This plan will also need to adapt and be flexible, should you be injured or need added rest days. The need for a plan that is adaptable and flexible is also a basic requirement for any supply chain.
So, what should the plan be? Well…
Know your numbers
For the right plan, you need to know not only your goal but where you are at now. You need to know your numbers: how far, how often and how long you run, and for how long have you been running. Needless to say, the plan for a seasoned runner who regularly runs half and full marathons is very different to someone who only runs the occasional Park Run. It is important to know your limits, so that you can push them, with-out injuring yourself.
The numbers you need to know for a successful supply chain plan needs to take into account and regularly re-assess your Tier 1, 2 and 3 suppliers’ numbers, your internal numbers and your customers numbers. This is only possible through collaboration. This new world will require much better, much closer collaboration and dedication to working honestly with your suppliers and customers. The collaboration needs to stretch up and down the supply chain and be very deeply entrenched with in your business as well. Now is not the time to go back to business as usual.
Know the course
Prior to the marathon, runners will get to know the course, and the prevailing weather conditions. The training required for a sandy, flat course at the coast is very different to that required for a hilly road race high above sea-level.
It is highly unlikely that you will know the exact course going forward for your supply chain (if you do, you are one of the lucky few). If, when training, you are unsure of the course, the advice is to train for a high altitude, hilly race. Translating that to your supply chain, by ensuring that your plan is highly conservative and prepares the supply chain for the worst.
Back to the Plan
The right plan to train for a marathon is important not only to achieve your stated goals, but also to prevent injury. Injuries occur from too much, too soon and too fast, also known as the “terrible too’s”. The plan will have daily, weekly and monthly runs and cross training requirements, and this should update as your numbers change. Most importantly, you need to stick to the plan as closely as possible, and only change it as your numbers change.
In terms of your supply chain, it important to stick to your conservative plan, and not to stress your supply chain beyond its limits. It is also imperative that the plan and your supply chain adapt and change to meet new challenges, or as the numbers change. This can of course only happen with good collaboration and communication with suppliers and customers.
Buying the right equipment
New runners will be tempted to go all in and buy all the latest gear, including new running clothes, smart watches, running belts et al. Experienced runners and trainers will caution you to start by investing in good running shoes. There are specialist shops that can assist with finding the right shoes for you. These specialists will look at your gait and ensure that the shoes fit correctly, reducing the risk of blisters, chaffing and lost toenails. They will also take your budget into account.
Much the same, there will be temptation to spend resources on new technologies or other silver bullets to improve your supply chain performance. Before investing, ensure that you:
1. Go to the experts
2. Invest in the essentials only
3. Invest in what you need NOW
4. Do not overcomplicate things
Similar investing in the right shoes, invest in the right basics for your supply chain, and upgrade and add as and when your supply chain improves.
Finally
Surviving and possibly thriving in the coming months, perhaps even years as a business, is highly dependent on how well your supply chain reacts to these uncertain times. Getting over the financial impact of the COVID-19 pandemic is not going to be a sprint, it is going to be a marathon, And like preparing for a marathon, running a successful supply chain requires commitment, consistency, persistence, and focus. Also, much like preparing for a marathon, your supply chain requires a good adaptable plan, collaboration with suppliers and customers and knowing your numbers. Good luck and see you on the road.