Do you find yourself in a VUCA condition as a result of the impact of 2020? The abbreviation VUCA (volatile, unpredictable, complex, and ambiguous) is well-known in the supply chain, and the global pandemic’s major disruptions have brought it to the forefront of many sectors’ and organizations’ minds.
In case you missed it, we gave a basic explanation of VUCA and some questions that business executives may ask themselves to mitigate VUCA’s effects on their operations in our recent blog post. Last year was all about real-time testing, and now it’s time to look back and see what works and what doesn’t, as well as what changes that can be done to improve your supply chain moving ahead.
Operating in a continual state of VUCA is one of the finest ways to find answers to those concerns and drive your company toward resilience and continuity. This does not imply that you should increase the volatility, uncertainty, complexity, or ambiguity in your operations on purpose. It just implies that VUCA might appear at any time. Your decisions and investments should be made in a way that helps you reduce VUCA’s effects on your operations.
The following are some of the best practices we suggest:
You can’t solve a problem if you don’t talk about it. It’s more crucial than ever to include VUCA in your leadership dialogues and decision-making. Recognize how global geographic and political events may affect your suppliers, consumers, and partners.
Any business’s primary use of technology should be to simplify and streamline a process or job. This might be a good method to increase the resilience and continuity of your business operations. Inherently, technology improves visibility, reduces complexity, and reduces the time it takes to complete jobs, among other things.
Upgrades and new acquisitions that contain VUCA-related techniques should be made as technology improves — whether it’s software to track your whole supply chain or tools to boost communication and transparency outside the business.
Investing in modern supply chain transparency technologies, for example, may help you better track items throughout their route, find the best vendor for your needs at any given time, and provide timely guarantees to your customers.
Smart technology can also assist businesses in anticipating changes in their surroundings. Artificial intelligence, according to Deloitte, can forecast abrupt developments and respond with faster (and more accurate) judgments.
VUCA vulnerability reduction is dependent not just on your own operations, but also on those of your supply chain partners. Understanding how suppliers, warehouses, and value producers like etaGLOBAL, LLC are preparing to adapt to market shifts is critical.
When all of your company’s departments work together, you’ll have a lot higher chance of exceeding expectations on all fronts.
While there is no “cure” for VUCA, there are ways for businesses to lower their risks. It might be the opportunity you need to go ahead – and stay ahead – if you make it a priority.
Return to our blog for more supply chain insights.