Why Flexible Supply Chains Are Important
January 2020, start of the new year and China have decided to put the country into lockdown, shutting production to contain the outbreak, the steady flow of vital packaging to global supply chains slowed or stopped.
Confronted with the unprecedented pandemic, manufacturers scrambled to find alternative packaging suppliers to keep their factories running. Now, as some regions move past the most acute phase of the pandemic, it is to be expected that leadership teams are taking a hard look at supply chain reliability and risk.
The Covid-19 outbreak isn’t an isolated event. Disruptions are increasing in frequency and magnitude, for example geopolitical events, such as the US–China trade war and instability in Europe. For decades, low-cost supply and minimal inventory were the key tenets of supply chain management. But in an increasingly turbulent world, is it time to assess supply networks that are overly dependent on the lowest-cost supplier?
When US–China trade tensions flared last year, leading companies already started to rethink the cost of network risk and invest in more resilient supply chains. Flexible networks help companies adjust quickly in times of stress. They also help production team’s pivot nimbly to meet changing market demand, a significant competitive edge.
This is one reason, why choosing Rosenflex as a partner supplier is sensible. Throughout these turbulent months, we have been able to offer quick 4-5 week lead times for FIBC Bulk Bags. How did we achieve this? Through trusted but flexible supply networks that help us minimize the risk of disruption in times of stress.
Being a partner supplier, not just any old sales trader is part of what sets us apart from the rest. Giving our customers that piece of mind, structure and confidence in their supply chain to keep the cogs turning, allowing for that flexible supply chain to expand customer’s output capacity 15% to 25% by optimizing operations.
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