Colgate-Palmolive, a household name worldwide, has showcased exceptional agility, resilience, and commitment to supply chain sustainability.
Colgate-Palmolive developed the first-of-its-kind recyclable plastic tube. Thanks to this innovative business decision, the company was featured on Fast Company’s 2021 list of the World’s Most Innovative Companies.
Colgate is consistently involved in new digital capabilities, including factory automation and advanced network modeling. For instance, with the ambition of connecting manufacturing operations to its supply chain and boosting supply chain reliability, Colgate is adopting the predictive maintenance model.
The wireless sensors and AI-powered data analytics are expected to enable Colgate-Palmolive to monitor equipment health 24/7 and optimize its performance.
Similarly, Nestle is increasing the use of simple packaging and biodegradable and compostable materials and enhancing its use of recycled content. In addition, it is revisiting its Supply chain diversification plan by expanding its e-commerce business and developing new direct-to-consumer (DTC) capabilities across its entire supply chain.
Resilient Supply Chain – Need of the Hour
A late 2021 McKinsey report reveals that disturbances hike the supply chain costs of a business. This causes an average dent of 45 percent of one year’s profits. Amidst the endless possibilities of disruption in the future, companies need to foresee the disturbances and plan better.
Only 21% of respondents to a recent Gartner survey revealed that they have a highly resilient network today. Unfortunately, this means that many global businesses lack good visibility and the agility to rapidly shift sourcing, manufacturing, and distribution activities in times of crisis.
The same McKinsey survey mentioned above reveals that of the surveyed supply-chain executives, approximately 80% believed that they need to utilize digital planning for optimizing supply chains and increasing its visibility.
While consistency in the supply chain helps companies to elevate their overall performance, many global businesses suffer from the lack of a robust supply chain and thus face the risk of disruptions that can cause significant amounts of time and money.
New Age Strategies to Build Resilient Supply Chain Network
Most business leaders agree that sound supply chain strategies are necessary to achieve resilience in the current environment. Effective business operations require correct supply chain technology and empowered people to make the right decisions.
Imagine different parts of the supply chain network deploying a mix of manual and ERP solutions. Is it not a costly mistake to make today’s ever-evolving business environment? A Software product engineering company can lead a company to customized solutions that provide real-time access to information and supply chain analytics.
The software product engineering services are helping businesses globally with software that can estimate the demand of the products almost accurately. Roughly 15% improvement in demand forecast accuracy leads to at least a 3% increment in pre-tax revenue.
Supply chain professionals need visibility into inventory to forecast more accurately. Software that enables inventory tracking monitors items’ velocity and automatically reorders stock per item provides valuable insights into the strengths and weaknesses of a company’s inventory management strategy. Professionals can modify the supply chain strategy as per the real-time insights of the software.
The supply chain management practices that the professionals adopt today will define the reaction of an enterprise in the wake of a disruptive crisis. The ability to quickly anticipate and respond to supply chain problems will mark the difference between an efficient and poor supply chain strategy.
Today’s business environment is very dynamic and receptive to geo-political and social changes. As a result, modern businesses need to be quicker and move towards an agile supply chain. Product engineering consulting companies with experience can assist businesses with custom-made solutions to achieve robust supply chain networks.