Question

The majority of companies did not heed the lessons of the natural disasters of the last decade and, as a result, suffered severe supply disruptions when the Covid-19 pandemic struck. what are some of the ways that companies can manage disruptions in their supply chains. Give a concrete example.

Answer 1

That is very true about the fact that many organisations have been hit hardly by this covid-19 situation beceause they haven't prepared themselves for any disaster as for their supply chain and are now suffering. To effectively learn about the ways company can manage disruptions with the Supply chain, let's take an example of Amazon.

1. No. of Suppliers: Even in this covid-19 situation, the only effective organisation we know who is working day and night to keep up with the needs of their customers providing them their daily essentials is Amazon. But what is making them being consistent with their supplies? Amazon has never relied on only one supplier for their delivery process On the other hand, it always has worked together with all the suppliers and maintain the best relationships in the supply chain management which has thereby given effective results to even be productive at this time.

2. Vertical Integration: Amazon could be seen as an excellent example for the vertical integration process. The organsation has effectively integrated itself with all of its suppliers thus having the correct and effective information about what, how and when the product would be delivered or supplied helps them fighting with this situation and serve the customer.

3. Quality and Safety: At last, the qualitative aspects. Amazon is very much customer centric organisation and thus takes care of its supplies being regulated and effectively handled. Thus, they have adopted the most strategic and safest working models in their industry to help the employees and even the supplier to effectively communicate and produce and also follow the effective research and development techniques to ensure the right quantity of inventory as per the customer demand in the effective management of the supply chain.