Tag: Management of Cross-Functional Drivers in a Supply Chain

Existing amenities are not enough to store, and deliver a large volume of vaccines within a short time, say experts. The governments are considering banking on the existing cold chain as a supply chain and logistical issue for storing, transporting, and distributing coronavirus vaccines while some professionals say the main challenge will be to manage such a large volume with the existing capacity. On November 5, 2020, the Bangladesh government signed a trilateral memorandum of understanding (MoU) with the Serum Institute of India and Bangladesh’s Beximco Pharmaceuticals Ltd to get three crore doses of Covid-19 vaccines from Serum, keeping in mind the existing cold chain. In 2020 during the COVID-19 pandemic, vaccines being developed may need ultra-cold storage and transportation temperatures as cold as −70 °C (−94 °F), requiring what has been referred to as a “colder chain” infrastructure. Disruption of a cold chain due to war may produce consequences similar to the smallpox outbreaks in the Philippines during the Spanish–American War. The distributed vaccines were inert due to a lack of temperature control in transport. There are no uniform global practices to follow, customs, legal, and compliance issues, effects on the environment, supplier-related risks, issues with cold chain delivery — packaging, hardware issues, vehicle breakdown, etc. Besides the usual elements of risk that plague normal supply chains, cutting-edge cold chain logistics has its own exclusive set of problems such as product sensitivity, the increasing cost of freight, and growing regulatory hurdles.

 Each ship must develop a unique plan to protect against security threats. The plan must be approved by the ship’s flag state. Port facilities must also develop a security plan to protect port infrastructure. The plan outlines the responsibilities of port facility personnel and how to respond to potential security breaches. The ISPS Code introduces a three-tiered system of security levels: Level 1: Normal security measures, Level 2: Additional security measures due to an elevated threat level, and Level 3: The highest level of security measures is activated in response to a specific threat or a known risk. Each ship and port facility must appoint a Ship Security Officer (SSO) to maintain the security plan and coordinate actions with relevant authorities. Regular training and drills are mandated for both ship and port personnel to ensure personnel are well-prepared for potential security incidents. The code sets guidelines for information sharing and cooperation between all parties to enhance maritime security. The ISPS Code has significantly improved supply chain security, particularly in the global maritime industry. It reduces the risk of terrorist attacks and piracy, enhancing the security of ports that transport goods across international borders. It encourages risk mitigation and threat assessment, enhancing the security of cargo and fostering international cooperation. It improves monitoring and surveillance, requiring port facilities to implement surveillance systems and ships to be equipped with tracking systems. It requires both ships and port facilities to have contingency plans in place in the event of a security breach or a threat. It provides guidelines for the protection of critical infrastructure against physical attacks or other types of sabotage. The ISPS Code instills confidence in global trade and by ensuring consistent security maintenance using International ship and Port Facility Security Code.

In a case study, based on US-based companies, first-level management is of about 0-4 years. To understand the supply chain management job and career we can remind ourselves about the example of leaf cutter ants. APICS, founded in 1957 as American Production and Inventory Control Society and re-branded as The Association for Supply Chain Management in 2018, launched their CSCP (Certified Supply Chain Professional) programme in 2006. Institute for Supply Management, founded in 1915 as the National Association of Purchasing Agents, launched its CPSM Certified Professional in Supply Management programme in 2008. Council of Supply Chain Management Professionals, founded in 1963 as the Council of Logistics Management, launched their SCPro programme in 2011.For Supply Chain Management roles, “Process Engineer”, and “Supply Chain Analyst”. For Supply Chain Systems Manager roles, “Supply Chain Manager”, Vice President, Supply Chain Management”. For Sales and Customer Service roles, “Account Specialist”/ “Customer Service”, “Customer Service Manager”, “Account Manager/Supply Chain Sales” etc.

Toyota has an effective supply chain strategy that puts value and efficiency first. It has adopted the Just-In-Time (JIT) system, which guarantees on-demand delivery of materials and components while cutting waste and inventory expenses. By employing a tiered supplier system and incorporating employees at all levels in cooperative improvement initiatives, Toyota also cultivates long-term relationships with its suppliers. The Toyota Production System (TPS) maximizes efficiency while reducing waste and overproduction. To match production schedules with market demand, the organization employs sophisticated demand forecasting systems. Toyota also uses buffer stockpiles for essential components and dual-sourcing tactics to proactively manage supply chain risks. For improved supply chain monitoring and predictive analytics, the business incorporates cutting-edge digital technologies like IoT and AI.

Unilever’s vast operations require a robust SCM to manage the flow of materials across continents and the company is committed to sustainable sourcing practices. Unilever’s supply chain management includes advanced technologies and lean manufacturing principles to optimize production and minimize waste. The company also uses a sophisticated logistics network for timely delivery of products and is embracing digital technologies to enhance supply chain visibility and efficiency, including the use of IoT sensors, AI-powered analytics, and blockchain. Unilever is a pioneer in sustainable practices, such as palm oil sourcing and achieving zero waste to landfill status in many factories, showing its commitment to environmental sustainability. Suppliers who meet Unilever’s criteria for climate leadership can sign the Unilever Climate Promise to demonstrate their commitment to sustainability.

The U.S.-China trade war and the Covid-19 crisis have prompted manufacturers worldwide to reassess their supply chains, focusing on increasing domestic production, boosting employment in their home countries, reducing dependence on risky sources, and rethinking lean inventories and just-in-time replenishment strategies. The pandemic has exposed vulnerabilities in production strategies and supply chains, leading to increased political and competitive pressures. Modern products often require specialized technological skills, and manufacturers often rely on suppliers and subcontractors who focus on specific areas. However, relying on a single supplier deep in their network increases disruption risks. To mitigate these risks, manufacturers should categorize suppliers as low-, medium-, or high-risk, using metrics like revenue impact, factory recovery time, and alternate sources.

Achieving the Sustainable Development Goals (SDGs) is a critical role for businesses and brands, as it can have a big impact on their operations, strategies, branding, and stakeholder interactions. In order to meet global sustainability goals, promote innovation in goods and services as well as business models, and draw in socially conscious clientele, companies are incorporating the Sustainable Development Goals (SDGs) into their plans. ESG factors are also being considered by investors when making decisions, and businesses that support the SDGs stand to gain access to sustainable finance sources and a greater number of investments.
Goals such as “Climate Action” and “Responsible Consumption and Production” can encourage companies to streamline their supply chains, cut waste, and use more environmentally friendly production techniques. Governments are putting SDG-aligned laws into effect, and businesses need to follow them to avoid fines or reputational harm.