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CONTENT TODAY

Demand effects

New normal

Survey results

Reshaping the supply chain

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COVID-19 has hit a lot of global manufacturing companies really hard, and most of them
have survived the crisis due to agility in decision-making

Performance

PERFORMANCE
Adapting to a
IS HIT ON …
new normal
Sales (up or down)
Recovery
handling Lack of supply

Crisis Delivery performance

handling

Time Cost

Liquidity
Before During After

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Global demand has been highly impacted by COVID-19

Typical scenarios for recovery

Peak and stabilise

Rapid rebound and growth

Dip and stabilise

2020 2021

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How have you been impacted on demand by COVID-19?

Lost No big Big demand

sales changes (+/- 5%) increases

Demand
How has your demand curve developed so
far as a consequence of COVID-19?

POLL 9
 WILL THERE BE A
NEW NORMAL?
… Or will it be back to business as usual?

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Before COVID-19, we were already on a journey to a new normal

BEFORE COVID-19
Demand
Old normal New normal
Steady sales and Unstable and
stable growth New normal unpredictable demand

Long and global Consumer shifts (online +

Economies Economies green shopping)
supply chains of scale of scope

Lean supply chain Big technology disruptions

Optimised inventory Old normal Customer-driven SC focus

Focus on cost and Focus on efficiency,

efficiency reliability and sustainability
Supply

Survey results: Implement's SCM survey, June 2020 11

The media and the consultancy business are talking about a new normal
after COVID-19 – but what is that about?

AFTER COVID-19

A new
“new normal”?

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 SO, WE CREATED A
NORDIC SCM SURVEY

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 From 1/6-17/6, we carried out
34 interviews (the goal is 50+)

Nordic
34 [+] [SE, DK, DE] Global SC

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Transparency, agility and scalability have been essential during COVID-19

Importance of SCM focus areas (during COVID-19)

Outsourcing
Offshoring
Automation
Integration + collaboration
Digitalization
Transparency
Agility decision making
Scalable ramp up/down
Sourcing strategy
Manufacturing footprint
0 1 2 3 4
During

Survey results: Implement's SCM survey, June 2020 15

Transparency, agility and scalability have been decisive during COVID-19,
and digitalization, footprint and sourcing strategy are important going
forward

Top 6 areas that are important going forward

Manufacturing During After
footprint
4
3
Digitalization 2 Sourcing strategy
1
0

Scalable ramp
Transparency
up/down

Agility decision
making

Top 3 areas that have been decisive

during crisis handling

Survey results: Implement's SCM survey, June 2020 17

SO, WILL THERE BE A
NEW NORMAL?

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 WELL, YES, FOR SOME !
Travel and tourism Healthcare

YES! (-) YES! (+)

Staycation and less Local governmental

business traveling requirements
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 AND FOR MOST – NO!
For most For some

NO! NO!

Back to business as usual Strategic initiatives will

be accelerated
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HOWEVER, ONE THING WILL
CHANGE FOR EVERYONE
Everyone

YES!

Virtual collaboration

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Therefore, the new normal has been accelerated

ACCELERATED
Bullwhip aftermath
Regional/local SC
Digitalization and demand sensing
Virtual collaboration
Risk awareness and risk
management
Health, safety and environment

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 YOUR NEW NORMAL
What supply chain focus will be most
important in your “new normal”?

Manufacturing Sourcing Scalable ramp- Agility decision- Transparency Digitalization

footprint strategy up/down making

Automation Offshoring & Integration Sustainability

Outsourcing + collaboration

POLL 24
Key questions for reshaping the supply chain for future needs

How might we accelerate the digital transformation to create the transparency that is
1
needed to handle increased uncertainty -> for agile decision-making and execution?

How might we revise our planning concept to handle bullwhip aftermath and
2
the need for more agility in decision-making?

How might your supply

How might we redesign our supply chain (footprint/flows) to create resilience to
chain be reshaped to the 3 handle bullwhip aftermath, consumer demand shifts and prepare for the next crisis?
new normal that you will
face in your industry?
4 How might we automate physical processes, admin processes and data capture
to increase transparency and be able to do more remote services?

5 How might we reshape the supply base for more collaboration

and resilience?

How might our operating model be adjusted to the new normal

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that you will face in your industry?

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In the future, we need a GLOCAL manufacturing and distribution footprint

How might we redesign our supply chain (footprint/flows) to create resilience to

handle bullwhip aftermath, consumer demand shifts and prepare for the next crisis?

The answer is a GLOCAL setup and more collaboration.

SOURCING MANUFACTURING DISTRIBUTION

Sourcing strategy Manufacturing strategy Distribution strategy

“Should we have dual sourcing on more
components?”
Rather go into deeper partnerships with
more integration and collaboration.
Focus on scalability.
“Should we take home all our
production from China?”
Design for regional/local setup to
secure availability (insurance)
– go GLOCAL.
“Where to stock, what to stock and how
much to stock?”
Healthcare will face new requirements.
Local stock will be an expensive
solution. Innovate new service
offerings. Go GLOCAL!
What are the strategic initiatives that need to be reconsidered?

Risk management
End-to-end work on risk exposure, risk transparency and proactive risk management.

Go green
The sustainability
Structure Transparency Agility Alignment agenda will be
(and antifragility) accelerated.
Make/buy, (dual) Overview of Move from silo to
sourcing, GLOCAL inventory and order Shorter planning value stream focus,
manufacturing and promises across the cycles, agile vertical integration.
distribution footprint. external supply decision-making
chain, demand and execution,
sensing. scalability/flexibility.

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 KEY LEARNING POINTS

Overall, the New Normal
seems rather to be a
refinement of the already
ongoing “new normal” – at
least for global companies.
The most important focus areas
going forward for supply chain:
digitalization (demand sensing),
scalability (supplier collaboration)
and structural redesign
(GLOCAL).
Supply chains will not be
designed just for efficiency but
also for reliability and
sustainability.

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