Recently, lean supply chain strategy has gained traction as the preferred operating model for manufacturing organizations. In 2021, staff shortages and demand have had a direct impact on lead times, inventory levels, and more. Streamlining the supply chain to function in a minimalistic way is all but crucial in today’s economy. 

On the other hand, trying to operate too lean can lead to some unplanned consequences. This is why companies should focus on being both ‘lean’ and  ‘resilient’ with their supply chain strategies. The key to an effective lean supply chain is building the foundation for resilience.  In order to do this, organizations need the right data solution to create a harmonized supply chain that flows. Location intelligence can provide businesses with insights to craft a better multisourcing strategy and mitigate risk at different points along their supply chains.

Many external factors, including the COVID-19 pandemic, are currently impacting the global supply chain, and the jolt can be felt even when it comes to the smallest of parts. Everything from natural disasters, the market, the price of oil, and the current staffing shortages can disrupt an organization’s supply chain. This is why it’s important for supply chain leaders to craft a data-driven multisourcing strategy.

Organizations can use location intelligence to get a better understanding of their supply chain networks and improve the compartmentalization of their suppliers based on more than just their geographic location. For example, a menswear manufacturer has suppliers all over the country. Because of the national shortages, they need to create a multisourcing strategy that works for them.  By enriching their data with location intelligence, this manufacturer can fully understand the end-to-end network of their suppliers and manufacturers, giving them direct insight into things like who is currently experiencing staff shortages and how that will impact that supplier’s ability to transport the necessary materials to manufacture goods. Supply chain leadership can mitigate risk by crafting a data-driven multisourcing strategy.

To create a resilient supply chain, businesses need to utilize data and analytics to monitor, inform, and predict trends. Location intelligence can help organizations understand consumer behavior patterns, which is crucial to creating a resilient supply chain. After all, consumer behavior reflects market demand and economic activity. Consumer market trends impact supply and demand. While foot traffic patterns do provide an understanding of consumer behavior, they can also inform bottlenecks in business activity. 

Let’s say that an e-commerce company with multiple warehouses can use location analytics to determine truck traffic vs. employee traffic. If a warehouse isn’t seeing as much truck traffic, then that could be an indication that there might be a problem with their supplier, such as a decrease in material availability. By using foot traffic data, the company can quickly adapt to this change by researching an additional supplier for raw materials. 

This data can provide the e-commerce company with the insights they need to anticipate issues with their supply chain before they are reported. This means that leaders can pinpoint a problem area before it impacts their organization’s supply chains.

Consumer demand is always fluctuating, and the risks to supply chain disruptions seem to be never-ending. With a data-driven approach, businesses can become more agile and develop the resilience needed to build a lean supply chain that can thrive in a post-pandemic world.

With Gravy APIs, organizations can quickly get the data they need to create a resilient supply chain. For more information, contact us to speak with an expert today.