In early October, a strike shut down major ports across the United States for the first time in 50 years. This got me thinking about the idea of disruption. So often we hear the phrase, “the only thing that is constant is change” and honestly it feels trite. But looking back over the last five years or so, it is rather breathtaking just how many disruptions or changes there have been — and how many more there are likely to come.
A bumpy road of disruptions
While we all remember the pandemic, it was just one event on a bumpy road of disruptions that businesses have faced in recent years. Just before Covid there was Brexit and that radically reshaped supply chains across Europe.
In 2021, we faced semiconductor shortages that threw production lines into chaos. How about the container ship that got stuck in the Suez Canal? It was just one part of a larger disruption saga. It held up an estimated $9 to $10 billion worth of goods daily, revealing just how interconnected our supply chains truly are.
Now, global conflicts in the Red Sea are shaking up supply chains in Asia and the Middle East, while recent rains have offered relief after droughts impacted travel through the Panama Canal. Experts warn these climate change-related shocks could become commonplace in the next decade. And, if like me you live here in the United States, there is a Presidential election coming up which may impact trade and tariff policies. It makes you wonder what’s coming next.
People may say the only thing constant is change; perhaps the more appropriate phrase is, “the only thing constant is the fact that supply chain professionals have to manage through shifting landscapes on an almost daily basis.”
An antidote for uncertainty: Supply chain flexibility
Change and disruption have become the new normal for today’s distributors. Macroeconomic shifts, geopolitical turmoil, natural disasters and vulnerabilities in technology all add up to a steady stream of uncertainty. Meanwhile, customers can adjust orders at the drop of a hat — canceling, pushing back or accelerating them — while distributors are forced to quickly adapt, often needing to switch suppliers or find new shipping routes. Some say you can’t put the genie back in the bottle but Amazon’s recent introduction of a return processing fee to some product categories is one attempt at trying to create a more sustainable business model. It will be interesting to see how this unfolds.
That’s because navigating these disruptions isn’t just about strategy, it’s about real supply chain flexibility. The ability to pivot and adapt to customer demands can define success or failure for your business. Think about it: When distributors strengthen their flexibility, they’re not just meeting shifting expectations, they’re also being smart with how they use their resources.
The result? Sustaining customer satisfaction leads to an expanded market share, which inevitably boosts revenue and margins. This creates a powerful cycle where efficiency and service excellence drive financial success, allowing businesses to navigate disruptions while holding onto their competitive edge.
Improving supply chain flexibility with a modern ERP system
One way organizations manage that shifting landscape is by embracing a modern ERP system. These systems not only offer the tools needed to navigate uncertainty but also instill the confidence to plan, pivot and act decisively.
Take Tecsys’ Elite™ Distribution ERP, for instance. It’s designed to enhance supply chain resilience and flexibility, providing leaders with a clear view of their operations. With this visibility, businesses can make informed decisions, respond faster to customer needs and stay ahead of the competition. That’s why companies like Aetrex rely on Elite™ to manage service levels, control warehousing costs and drive growth.
How do ERPs fare on bumpy roads?
In a world where macroeconomic shifts and ongoing disruptions keep popping up, it’s clear that flexibility is key. Implementing a modern ERP system can be a game changer for distributors, helping them sense changes and adapt on the fly.
- Demand planning: Ever wondered how some businesses seem to predict customer needs before they even arise? That’s the magic of modern ERP systems. With reports that enhance demand forecast accuracy, planners can both identify trends and uncover new opportunities.
- Supply planning: A modern ERP system manages inventory challenges, preventing both over- and under-stocking, particularly when dealing with a multitude of SKUs. By fostering collaboration with suppliers, a well-designed ERP streamlines operations, cuts costs and reduces errors. This adaptability not only helps businesses navigate uncertainties, but also ensures they stay competitive.
In today's chaotic landscape, a modern ERP system isn't just software — it's necessary for distributors navigating a world where disruption is the norm. Recent disruptions have reshaped supply chains, highlighting the need for agility and responsiveness. In this context, ERPs provide real-time data that empowers teams to navigate challenges with clarity and precision.
In a climate where change is constant, having this level of control is essential. It allows businesses not just to weather the storms but to emerge from them resilient, ready to face whatever lies ahead.
