Innovation is said to be breed from necessity. There are many changes, both big and small, that will undoubtedly come from the Covid 19 coronavirus pandemic.
For business professionals, there are two key lessons to address. The first is lessening dependence on one labor market. The second is re-evaluating how inventory planning is handled.
China provides manufacturers with bountiful low-cost labor, low regulatory standards, and growing middle class economy. An attractive market to invest in going forward.
The pandemic demonstrated just how difficult it is to attain critical or even basic supplies when disruptions occur in China, especially when they need the same items.
Greater resiliency is needed in many supply chains, being able to shift production and distribution to other nodes when one is facing strife or disruption.
Inventory is cost for many organizations, especially when it sits on racks for too long. The preferred model is to maintain a level balanced with throughput with a safety stock to minimize cost and risk at the same time.
Planners might want to consider adding in a panic stock to calculations. Other than the recent pandemic, weather related situations cause panic buying in many retail stores.
An appropriate step to ensure goods are available would be to increase the level of safety stock during certain events to buffer runs on common or popular products.
Another change that might help protect the supply of critical medical goods is preventing the average person from purchasing certain products without a medical or some professional license.
There really is no reason for the average person to be walking around with a product better served on a medical professional. Protect access to industries that need it most.
Perceived failures during challenging times bring out solutions. There will always be shortcomings in every event. The important aspect is to learn and adapt for future ones.