XYZ Pvt. Limited is one of the producers of secondary steel in India, with more than 3000 employees working in three shifts across different departments. Since Steel Market is very volatile, company was working on a plan to modernize its machineries in order to gain competitive advantage as this would reduce its overall operational cost. The decision makers at ABC Pvt. Ltd. decided to go for it due to rapid urbanization and increasing Steel demand in India. They were also aiming to increase their exports as currently in FY 2019 it was just 15% of their total Sales. Implementation of National Steel policy 2017 also motivated the managers of XYZ Pvt. Ltd. for this change.

Transition was going smooth but then COVID pandemic shook the global markets. Lockdown was implemented in India on 25^th March 2019. This came up with several restrictions including the number of workforces allowed, safety protocols to be maintained etc. Another issue which hurt XYZ Pvt. Ltd. badly was supply chain disruption, the outbound logistics department was facing continuous issue of delayed supply. Outbound logistics department was more vulnerable to Covid pandemic as it involved interaction with truck drivers, who have to travel different parts of the country for supplying goods. 

The preloading process at XYZ Pvt. Ltd. involved entry of truck from the main gate. At the gate Alcohol test of the driver was done and they were supposed to fill the details of vehicle. After this they were sent to the loading area where slips were given to them after the loading process was completed. The Pot loading process involved proper lashing of the material, weighing it and putting in the trucks. Documentation involved quality check and signatures from Quality department followed by generating slips containing information about the delivery. Typically, this process required about 3 hours and, in the meantime, drivers used to relax in the campus or avail canteen facilities.

 

What should be the organization's strategy to effectively deal with current situation and how to deal with such pandemic or emergency situation if it occurs again in future?

The company has an opportunity to use this challenging period to discover where investments are needed, evolve the supply chain planning function, and reposition the organization for growth once economies rebound. There are three key focus areas:

1. Evolve digital to unlock data
2. Rethink the operating model
3. Build an asset-light network.

Step-by-step explanation

The COVID-19 pandemic is not just a short-term crisis. It has long-lasting implications for how people work and how supply chains function. There is a pressing need for businesses to build long-term resilience in their value chains for managing future challenges.

This requires holistic approaches to manage the supply chain. Companies must build in sufficient flexibility to protect against future disruptions. They should also consider developing a robust framework that includes a responsive and resilient risk management operations capability. That capability should be technology-led, leveraging platforms that support applied analytics, artificial intelligence and machine learning. It should also ensure end-to-end transparency across the supply chain. In the long-term, risk response will need to become an integral part of business-as-usual protocols.

XYZ Pvt. Limited can accelerate their digital transformations with logistics businesses starting to introduce capabilities like real-time order monitoring, end-to-end inventory visibility, and super-reverse logistics experiences. XYZ Pvt. Limited can also use this opportunity to reset their operations with digital capabilities and renew logistics operating models to increase operational efficiency and effectiveness. Doing so will enable them to emerge stronger and with supply chains that are more resilient to future disruptions.

Managing upstream supply disruptions from tier 1 and tier 2 suppliers, while rebalancing short-term sourcing decisions in the light of supply network constraints. Now they need to turn their attention to the medium-term security of the supply base, unlocking funds intelligently and building future-proof resilience. This approach will not only help manage the immediate COVID-19 emergency, but also build stronger and more resilient businesses ready to thrive as economies return to growth. Accelerate the uptake of new technologies such as augmented reality in warehousing operations and 3D printing.

Supply chain managers to factor risk management and resilience into all aspects and levels of their decision-making. This may prove to be its legacy to the supply chain management profession, preparing it not just for future health crises but for a broad range of other high-impact low-probability events.