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BUSINESS INSIGHT the Covid-19 pandemic W hile it is very


difficult to predict exactly how life will


look


normality has resumed


once after


crisis, it


is inevitable that neither business nor society as a whole will return to exactly how it was prior to the coronavirus pandemic. But where is the supply chain likely to see change?


Strategy changes For many, we are likely to see a re-assessment in supply chain strategies. Reliance upon global supply chains


will reduce,


particularly on single sourcing of components, raw materials and finished products. Subsequently, this could also potentially lead to more positive encouragement of domestic production, manufacturing and farming where possible. Companies are also likely to


reassess their ‘disaster plans’, armed with the knowledge from this crisis of just how much supply chains can be impacted at a moment’s notice. Indeed, many are likely to see this as a ‘dry run’ for what may happen if we end up with a damaging – and still worryingly realistic – no-deal Brexit further down the line, and place a greater emphasis on future contingency planning and investing in solutions to increase resilience. At the same time, of course, we cannot lose focus on efficiency and the need to offset the effects of workforce shortages such as more technology and automation.


Changing consumer expectations


The significant increase in home delivery and click & collect in all sectors will factor more heavily in consumer buying behaviour than previously, due to many shoppers having become even more accustomed to purchasing goods in this way.


This will have a knock-on effect on businesses, as, if these models do indeed persist, they will in turn impact both businesses’ capacity to


meet changing consumer expectations, and their cost to serve, due to many home delivery services currently being provided either for free, or at a low cost that is not a sustainable business model longterm.


Reduced consumer choice Product lines may evolve, with the possibility of a reduction in consumer choice for products. While consumers have had the benefit of a very wide choice (tens of thousands) of products when


www.diyweek.net


“For many, we are likely to see a re-assessment in supply chain strategies.”


As we emerge from an unprecedented lockdown period, which has seen many businesses suffer a severe financial shock, John Perry, managing director of leading supply chain and logistics consultancy, SCALA offers his opinion on what we can expect the future supply chain landscape to look like once we get back to the ‘new normal’


they visit the major supermarkets previously, there are considerable supply chain benefits in reducing the range of products available. Given


this, we are see businesses likely explore ways to


streamline product ranges to increase the resilience of the supply chain, reduce complexity and make it more efficient. This is the approach favoured by discounters such as Aldi and Lidl, and whilst we are not likely to see these exact models replicated, we may see moves in that direction that could increase both supply chain resilience and supply chain efficiency.


How SCALA operates SCALA Consulting was founded in 2001 and has earned an excellent industry reputation for providing high quality


supply chain to


logistics expertise. The company now has an executive board of directors, all of who have senior level business experience. SCALA


Consultants work


with many leading international companies. It is the company’s approach to create partnerships with clients, combining its external experience and expertise with its clients’ own business knowledge to deliver practical solutions in order to meet future commercial requirements and drive real tangible benefits. SCALA’s experienced team is passionate about innovating supply chain improvements and providing independent objective expertise


with professionalism, and


diligence, and integrity. SCALA’s objective is to optimise its clients’ customer service and supply chain whilst ensuring logistics


operations are robust and flexible to meet future demands. Every client has a dedicated SCALA director who ensures projects are successfully managed, providing continuity and understanding while introducing the right consultants with the applicable area of expertise and experience as the project progresses.


In addition, the business has a client services director,


Alison


Hobson, handling all day-to-day communications and acting as customer champion. All of SCALA’s activities are overseen by managing director, John Perry, who provides project governance and ensures SCALA delivers all projects on time and in full.


For more information, please visit: www.scalagroup.co.uk


MAY 2020 DIY WEEK 21


LIFE AFTER LOCKDOWN: HOW THE SUPPLY CHAIN MIGHT LOOK AFTER COVID-19


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