The Ultimate Gen Z Guide to Supply Chain Management

What’s the supply chain? Why is it in the news? How is risk managed? What does tech have to do with it? We’ve got you covered. Learn more.

Supply chain management is a big part of success for many organizations, but what does that mean? Are you a member of Gen Z just joining the workforce? Or any other curious person? You might be wondering how the supply chain impacts your company. Why is it always in the news? Why are people worried and what are they doing about it? You’re in the right place. Let’s cover some basics.

Why Worry? The Glory Days of Just in Time Inventory Management 

First, some lingo. Just in Time (JIT) inventory is a philosophy that asks, “Why pay to keep something in storage? Can’t we just get it when we need it?”

It’s a tempting approach. On the plus side, storage costs go down. The risk of purchasing something you don’t need or use declines as well. When things are running smoothly companies will often choose the easy way. This means getting everything they need, just as they need it, from one or two low-cost providers. Works out well for the bottom line.

Wake Up! The Pandemic and Other Supply Chain Complications 

The problem is, things don’t always run smoothly. Circumstances change, suppliers fail, transportation snafus delay shipments, raw materials face shortages. Suddenly companies find themselves days or mere hours away from shutdowns. Not so good for the bottom line.

There’s no better example of this than the pandemic. Suppliers had to change the way they operated, causing delays. Transportation was disrupted and shortages were prominent. On top of all these supply challenges came massive demand fluctuations. People’s lifestyles were turned upside down and they wanted more of some products and less of others. Business as usual was out the window.

It’s not just the pandemic either. Global conflicts continue to disrupt the production and safe passage of goods. Weather events impact raw materials, production, and transportation. Tariffs and political tussles emerge, wreaking havoc on financial analysis and stability. Ships get stuck, blocking pivotal canals. ‘Just in time’ meant ‘just in trouble’.

Supply Chain Risk Mitigation 

Cue a thousand think pieces and bold proclamations about supply chain risk mitigation. News programs and social media channels brought us videos of everyday citizens fighting over toilet paper. CEOs vowed not to get fooled again, some of them actually meant it.

‘Just in Case’ inventory became the buzzword. Companies sought more vendors, alternative inputs, and bigger stockpiles of key materials. Constant evaluation of supplier relationships and inventory levels had always been the practice of prudent organizations. Now it was in vogue like never before.

The term ‘nearshoring’ was used to highlight the importance of doing business locally. This cuts down on risk. ‘Friendshoring’ emphasized doing business with countries considered friendly and stable.

As we recovered from the chaos of the pandemic, many companies vowed to never again put all of their eggs in one basket. Risk management became the guiding star. The result? More resilient supply chains and higher costs. When it comes to supply chain management, companies get what they pay for. They then pass the cost along to consumers, fuelling inflation.

The Tough Get Going: Companies React to Supply Chain Challenges 

When companies are faced with supply chain challenges, they either rise to the challenge or pay the price.

Working from home meant more time for breakfast, peaking demand for Kellogg’s cereal. The company’s Asia Pacific, Middle East, and Africa division found itself short on cardboard for packaging.1 They ‘scoured the globe’, only to find a new supplier right in their backyard, in New Zealand.

Wal Mart reacted to shipping bottlenecks by chartering their own ships and unloading them at less busy ports.2 This might not be practical for smaller companies, but it worked great for the retail giant.

Navigating the supply chain doesn’t only mean supply channels, but distribution as well. With doors locked at the mall, Nike pivoted to online sales.1

While these companies succeeded with a reactionary approach, 3M benefitted from preparation. They learned their lesson when demand for masks soared during 2003’s SARS outbreak. The company invested in ‘surge capacity’, which came in handy during the Covid pandemic.2

The Future of Supply Chain Management: Technology and Canadian Companies

As supply chain management becomes ever more top-of-mind, a host of tech companies look to join the gold rush.

Innovative applications are used to track and facilitate the movement of goods. Companies are using artificial intelligence to find and rate alternative sources and it’s even being used to automate negotiations. The future promises even more of the same.

Canadian companies are getting in on the act.3 Basetwo’s platform helps manufacturers in biopharma, aerospace, and other sectors test process scenarios. As a result, they’re able to streamline manufacturing and make better procurement decisions.

Food service companies are using Brizo Data to devise strategies about where best to focus their resources.3

Empower Health helps patients with its directory of ERs, urgent care centres, and walk-in clinics. It enables them to view current wait times and even pre-register. 3

Whether it’s materials, end-user products, or services, it’s all about using data to facilitate smoother interactions and more informed decisions.

Canadian Alliance Terminals Suite of Technology-Rated Top Choice

Canadian Alliance Terminals are continuously modernizing our processes as well. It’s part of our commitment to providing our customers with control, clarity, confidence, and convenience.

Our best in class warehouse management system tracks inventory using barcode technology. Our leading smart dock system eliminates emails and phone calls. Scheduling dock appointments has become as intuitive as ordering a Big Mac. Electronic bills of lading and transport management systems further facilitate streamlined logistics. 

We don’t know exactly what the future holds, but we know that it will present supply chain challenges. It’s imperative that companies remember the lessons that history has taught. We must all continue to take a prudent, proactive approach to supply chain management. Doing so will impact all aspects of business and society, from keeping our fridges full to getting Taylor on stage.

Cited Sources

1 Silver, Sara. “How Kellogg’s, Nike, and HP Handled 2020 Supply Chain Disruptions.” FM Magazine, January 25, 2021. https://www.fm-magazine.com/news/2021/jan/coronavirus-supply-chain-disruptions-kelloggs-nike-hp.html.

2 “Three Companies with Resilient Supply Chains Setting the Example.” Just Imagination Blog – Just Imagination Blog, October 14, 2022. https://blog.jcu.edu/2022/04/27/companies-with-supply-chain-resilience/.

3 District, MaRS Discovery. “12 Canadian Companies Solving Our Supply Chain Woes.” InnovateON.ca, August 15, 2023. https://innovateon.ca/12-canadian-companies-solving-our-supply-chain-woes/.