Supply Chain – how it affects us all!

Raw Materials(Supplier)  Manufacturing Warehousing Distribution(Supply) Customer

Supply Chain is more than the inventory sitting in your warehouse waiting to be sold.

What happens when one of the links breaks down?

Example – Transport

Each link of the chain requires transport.

We have over 230000 truck drivers in Alberta. This sounds great!

Issue: Not all drivers are certified to drive all types of vehicles or products.

Issue: Not all vehicles are equipped to transport specific types of products. You would not want to transport gas/oil in anything other than a tanker!

So the link was weakened.

Example – Flour

We have more than enough grain to mill. We even have enough mills to grind the flour.

Issue: There were not enough bags to put the flour into for distribution.

The missing link created a problem in bakeries – shortages of bread in stores.

Its the little things that seem to create the biggest problems.

Engineering New Social Operations

One of the biggest links that has failed in this time of pandemic, is Manufacturing.

Canada was once the leading country in manufacturing but we ignored technology and now it is too costly to produce so we import more and more. Plants and production in Canada have come to a halt.

To reopen we have to look at redesigning the workflow.  We must look at ways to limit social contact, improve productivity, source of materials, etc. Do we need to look at more automation?

Can Canada be self-sufficient?

• production costs would be higher
• internet access would need to be improved
• are raw materials available?

What price are you willing to pay? 

Each link in the Supply Chain must be strong or at least have an emergency replacement. We must look forward and figure out what our Canadian Chain looks like!

Crisis Management

This was the emergency plan we never thought we would need! Did your emergency plan include a recovery plan? Most of us only thought about the “physical” aspects of an emergency – flood, fire,
theft, vandalism.

So now we are here, what are we going to do? How are you going to recover? Will you come back the same? These questions are hard to answer and if you break them down into smaller sections, the process of finding those answers is not so overwhelming.

There are 2 different processes that people use.
1 – figure out what the final picture is and determine the steps back or
2 – look at the process one step at a time moving forward and determine where you are.

Whichever process works best for you, here are some suggestions on planning that recovery.

Short Term – what can you do now?
It is a little like a garden. In order to prepare the bed, you need to weed, turn the soil, review what you are planting, start/buy plants, and so on.
A – Assess the impact
    – This is a hard and painful step. But we must turn the soil and pull those weeds!
B – Acknowledge and outline steps for moving forward
    – This is a great opportunity to share with your customers/suppliers what you are doing to move forward. (review your planting!)
    – Appearing proactive instills a feeling of confidence
C – Formulate your response
    – What positive actions can you take? (start/buy plants)
    – Put it in writing! Collaborate with staff
    – Take a look at what you may want to change: processes; marketing; customer base, etc
D – Implement Response (Plant the garden)
    – Rewrite procedures
    – Look at retraining staff

Long term or Short term...remember Communication is key!
Communication with staff, customers, suppliers. Use your website, webinars you attend, email blasts to customers to get the information out...

Long Term – yes there is a long term! Just as gardens do not grow overnight, the business will not just hit the ground running at full speed! Continuous weeding and replanting, maintain and grows the garden. You may have a plan, but remember changes may need to be made as what is planned doesn't give you the result you expected.

Just remember to Communicate, and write down the changes. Write the change and the reason for the change...
A – Make your brand familiar
    – Use your brand in all your marketing
    – Emphasize local! What did your company do to assist your local community? Let people know you care!
    – Yes, toot your own horn!!
B - Emphasize your leadership position
   – Being proactive and looking to a restart shows a positive outlook
C – Safety First!
    – Minimize risk for customers! Even though the pandemic will pass, consumers will be cautious for some time to come
    – Emphasize warranties – how are you going to protect your customers?
    – Emphasize any new procedures that you have put in place to protect your workers and your customers