11 May 2021
The COVID-19 pandemic didn’t only restrict citizens’ travel and create social distancing. It also shut down manufacturing and limited commercial traffic between countries. This harmed businesses’ value chain as well as their established supply chains.
As the world moves toward recovery, supply chains must be re-established or renovated. They’ll probably look different, but this can improve your processes.
Keep reading to learn about new avenues to explore.
The pandemic’s impact on supply chain logistics
This pandemic represents the first modern-day global disruption in the supply chain industry. Every company across the globe has felt some level of impact. This includes the original manufacturers, service providers, suppliers, and distributors.
There’s now increased demand for products and services that businesses can’t meet. This forced many business owners to decide if they could afford to stay open.
When one business in the supply chain fails, it has a huge ripple effect. Companies from the manufacturer to the merchant become unable to meet customer needs.
After almost one year into the pandemic, supply chain stakeholders want more transparency. They expect real-time, comprehensive supply chain updates worldwide. This means enhanced B2B communication and processes to meet the customer needs.
The scope of vendor end-to-end visibility details may expand to include:
- Environmental, social, and governance (ESG) data reporting and protocols
- Material certifications
- Status related to delayed parts
- Reports addressing the vendor’s Scope 1, 2, and 3 carbon emissions
- Human rights credentials
- Diversity credentials
The ability to fully vet potential vendors increases the business’s confidence in decisions. It also provides a complete picture of the vendor’s sustainability.
How value chain can benefit supply chain logistics
Optimized value chain management improves the supply and transport of materials and products. This creates an effective system to provide accurate estimates of sales and demand. Thus, businesses can refine their inventory management and increase their return on investment.
Customers don’t understand all the steps required to place a product on the shelf. During 2020, businesses experienced high levels of customer dissatisfaction.
Interrupted supply chains meant they couldn’t find the products they wanted. Likewise, businesses lost revenue.
Communication is vital in all business interactions. This includes B2B and B2C. Effective value chain analysis and management remove information breakdowns. This leads to better relationships and helps find solutions to problems.
New processes can improve supply chain management. This means improving the flow of products and increasing the flow of cash. Thus, robust value chain management benefits the supply chain process for B2B.
Companies will also have opportunities to develop new market opportunities. This creates contingencies to reduce risks that occur as the market evolves.
Global value chain
The latest World Development Report shows that global value chains have far-reaching benefits.
They promote significant increases in developed and developing countries’ income and productivity. This occurs when global companies promote inclusion and develop sustainable processes.
Global B2B platform
One effect of the pandemic has been the exposure of businesses’ vulnerabilities. This quickly became clear when vendors ran out of materials and products. The broken supply chain, in time, kept merchants from meeting customer needs.
Kompass offers a global B2B platform. This connects businesses with suppliers across the world.
It also analyzes the current market to find trustworthy suppliers, and It examines large corporations and small businesses. Thus, it’s a valuable tool whether you are working in the local or global marketplace.
You’ll be able to search for new products and services provided by more than 35 million verified companies. If you don’t have time to search for suppliers, take advantage of Contact+, a free service where you will save time by asking for a quote.
Kompass’ contact+ service
Contact+ Service by Kompass is a free solution where you can ask for a quote and save time on your Supplier search.
You just need to tell Kompass what product or service you are looking for for your Company, and Kompass will find the right suppliers. You will be contacted later by verified companies in order to provide you the requested information you need to evaluate it.
This allows you to optimize your purchasing processes as Businesses feel more confident in establishing partnerships with verified companies.
Is your business planning a supply chain logistics upgrade?
Businesses know the importance of establishing a robust value chain. This optimizes your supply chain logistics and improves customer satisfaction. Kompass offers proven solutions to meet challenging business opportunities.
We provide innovative B2B information services. This connects the right companies at the right time.
Our team brings decades of experience in working with international physical networks. Your company will work directly with our unique data experts located in 75 countries.
Our B2B matching and export services are now the top choice globally. We work with many governments and private institutions. Contact us today to learn about our B2B solutions.