Supply chains are complex, and there are always challenges. Before the Covid19 pandemic, many vendors focused on sourcing raw materials and subassembly parts. Optimisation was king!
As projects reopen and deal with the effects of the pandemic, priorities have shifted from cost competitiveness and lead times to stock availability and accessibility, including:
- Container and Equipment Shortages
- Premium & Congestion Surcharges
- Vessel Cuts
- Port Omissions
Supply chains may be chaotic now, but a new order will be established in time. In the interim, the logistic and multi-modal network of TKHS has resolved many hurdles and exceeded expectations to retain key lead times to support the continuation of luxury hospitality projects around the world. Air, sea, road, rail, truck, courier…It’s paramount to be flexible and continuously evolve as the world changes.
Supply chains are complex, and there are always challenges. Before the Covid19 pandemic, many vendors focused on sourcing raw materials and subassembly parts. Optimisation was king, with vendors pushing for uninterrupted supply, low inventory levels, just-in-time delivery and scheduled logistics with precise loading and unloading slots. Even quality may take a temporary back seat to the need to get the required materials and components.
Procurement must grapple with limited visibility into what vendors have in stock and when stock levels will be sufficient to satisfy production needs. In short, planning decisions are nearly impossible right now. Some projects had the foresight to diversify their supply chains for critical materials and products, but that may not be enough to prevent all issues. As the pandemic flares up in different regions at different times, the reopening periods for some projects may not align with their suppliers – causing critical shortages.
What Covid19 can teach about modern supply chains
While operations departments routinely create contingency plans for events that are likely to disrupt well-optimised supply chain flows, few organisations are prepared for a massive disruption like a pandemic. The current challenges are all temporary, however. In time, companies that survive the cash crunch will return to normal operations.
Companies should focus on building resilient supply chains, diversifying risks, and incorporating the lessons the virus teaches about managing supply chains. Consider the following:
- On-time and in-full delivery rates can’t keep up with unprecedented surges in demand.
- Having cash on hand to pivot the business during a crisis is critical.
- An over-reliance on single-source overseas suppliers is risky.
- A return to normal demand levels will take time.
In the meantime, TKHS offers you support with our sustainable FF&E, OS&E and OSM logistics management, Vendor Quality Inspections and everything you would expect from the market-leading hotel logistics provider.
Feel free to contact us at firstname.lastname@example.org so that we can understand how best to support your urgent requirements.