55% of industrial companies are looking for new suppliers / Emerging from the crisis with supply chain network management – Lessons from the COVID-19 pandemic

Köngen – More than 50% of industrial companies want to increase the number of their suppliers in order to distribute potential risks. In addition, 40% are planning to implement greater control of their partners in the supply chain. The goal: Create greater stability and prevent future delivery failures. These are the results of the international study “Restart after Shutdown 2020.” Management consultancy Staufen interviewed more than 730 companies. Participants came from Germany, USA, China, Brazil, Mexico, Switzerland, Italy and Central Eastern Europe. 

Weaknesses in supply chains were unforgivingly exposed during the COVID-19 pandemic. 30% of companies admit experiencing major problems with their supply chain. In response to the disrupted added value streams, those surveyed are striving to build up inventories (36%) and achieve greater vertical integration (26%) in addition to searching for other suppliers and improving the management of their supply chain. “The way out of this crisis is through closer cooperation. It is now not a question of reversing globalization. Internationally networked supply chains will continue to determine everything from production to distribution. In the future, however, the various processes will be even more closely coordinated,” says Thomas Schlösser, Senior Partner at Staufen AG.

In the future, intelligent management of all participating partners in the process chain will be crucial to overcoming crises as smoothly as possible. The configuration of supply chain networks should be rethought. “The path leads from a hierarchical to a cooperative network structure,” says the consultant. “The supply chains connected in a network are characterized by increasing complexity and are also threatened. This system can no longer be best controlled with classic supply chain management. As a result, it is becoming more prone to crisis, as the effects of the Corona pandemic have shown. The way out of this dilemma is through a holistic approach to the value chain, including network-oriented risk management.”

In doing so, companies form a close network with their partners and benefit from mutual exchange. In the future, competition will take place between entire networks

and no longer between individual companies. Controlling complex value chains will therefore become an important factor. Those who come out on top will be supply chain networks that are sufficiently and agilely oriented towards customers. “Companies must overcome traditional supplier-customer thought structures and position themselves in cooperative partnerships,” says Staufen Manager Schlösser.

Staufen is pleased to offer interested companies its free white paper “Supply Chain Network Management”. Download at: www.staufen.ag/whitepaper 

About Staufen AG – www.staufen.ag

Inside every company there is an even better one. With this conviction, Staufen AG has been advising and qualifying companies and employees for more than 25 years. Markets are on the move – the competitive pressure is enormous. Staufen helps to quickly bring about the right changes, increase productivity, improve quality and increase innovative strength. With the most fitting strategies and methods, international transformation consulting ensures rapid and measurable success. With an aim towards raising the potential available in every company, Staufen consultants work side-by-side with company executives and employees to establish a vibrant and long-term culture of change. Staufen subsidiary Staufen Digital Neonex supports medium-sized industrial companies on their path to digital transformation. The Academy of Staufen AG also offers certified, practice-oriented training courses. From the international locations, more than 340 employees serve customers all over the world. In 2020, Staufen AG was recognized by “brand eins” as “Best Consultants” for the seventh year in a row. According to the renowned industry study “Hidden Champions 2020,” the consulting firm is Germany’s best lean management consultancy and was honored several times with the “Best of Consulting” award by the “Wirtschaftswoche” journal.