Supply Chain Creativity During COVID-19

Supply Chain Creativity During COVID-19

Supply Chain Creativity During COVID-19

Just as we typically don’t think about how groceries get to our grocery store, we probably don’t wonder how medical supplies get to our hospital room or doctor’s office. But for those of us who work in hospital supply chain management, we know a lot of negotiating, storage and coordination goes into this at the best of times.

As the world confronts COVID-19, issues regarding medical supply chains have been thrust into the spotlight. When a previously nonexistent health threat spreads across the globe in a matter of weeks, demand for essential medical equipment suddenly outstrips supply. Fraudulent vendors become a higher risk. Established vendor partnerships are strained. In fact, this virus originated near a major personal protective equipment (PPE) manufacturing area in China. This greatly reduced supply at a time when the world needed it most.

While most of UW Health has thus far not encountered a surge of COVID-19 patients, we have still faced unprecedented challenges since the onset of the pandemic. To overcome these current and potential shortages, serious creativity and collaboration need to be front and center.

With so much still unknown, a best-case scenario might be a new normal of carefully caring for COVID-19 patients in steady conjuncture with the many other patients who need our support. This creates a significant and prolonged increased need for PPE, posing tremendous challenges as the supply chain is under immense stress.

Using Public and Private Partnerships

As an academic medical center where our physicians are also faculty of the University of Wisconsin School of Medicine and Public Health, UW Health often works methodically. Now that time is of the essence, the health system and university have been collaborating closely and swiftly, and UW Health is benefiting greatly from its close partnership and proximity to the institution’s educators and students.

Making Unusable PPE Usable

In mid-March, UW Health received 1,250 hoods from the strategic national stockpile. These were meant to be used with our PAPRs, the respiratory protection systems that protect healthcare professionals when bodily fluids can be aerosolized, such as during intubation. Powered by a blower strapped around the wearer’s waist and connected by a hose to a hood covering the head, PAPRs offer the highest form of protection to a medical professional’s head, face and respiratory system during high-risk procedures.

Keeping Hand Sanitizer Flowing

As COVID-19 rapidly spread, the supply of hand sanitizer dwindled everywhere. We knew we would be hard-pressed to safely care for patients without it, so again we relied on the ingenuity and expertise of partners, this time at the UW-Madison School of Pharmacy’s Zeeh Pharmaceutical Experiment, which typically focuses on supporting drug development.

Reuse and Recycle

Sometimes supply chain challenges are not about getting or making more, but making existing supplies go further. We began sterilizing used N-95 respirators to reuse if we experienced a significant surge of patients. We have not yet needed to use them, but preparing for the worst is vital.

UW Health goes through thousands of surgical, isolation and patient gowns each week. Sourcing new, disposable gowns would be nearly impossible in the current climate. Fortunately, we are part of a laundry cooperative that not only launders all linens but sterilizes surgical and isolation gowns. Partnerships like this put a health system in a better position to control the supply chain than if it were a contracted client to a third-party laundry vendor or disposable gown supplier.

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DHL: transforming logistics with startup partnerships

DHL large electirc vehicle

DHL large electirc vehicle

Supply Chain Digital gets an insight into DHL’s partnerships with startups to drive digitalisation and sustinability within the business.

When it comes to innovations at DHL, the company values its partnerships both big and small. In recent years many startups have entered into the logistics industry. Markus Kückelhaus, VP of Innovation and Trend Research at DHL raises the question of why?

“The logistics industry is a very fragmented sector that is still catching up. Which is why this industry is interesting to startups,” says Kückelhaus who highlights that due to the industry’s small attempts at digitalisation, in addition to growing investments into logistics, there has been an increase in opportunities for startups.

Effidence

Founded in 2009, Effidence is a French research and robotics startup that develops collaborative robotic solutionsin logistics and agriculture. DHL has partnered with Effidence to develop its ‘follow me’ robotic trolleys.

Locus Robotics

Founded in 2014, Locus Robotics is an American robotic technology company that develops warehouse solutions to improve productivity. DHL has partnered with Locus Robotics to develop its Aisle picking robots.

University of Aachen

Established in 1870, the University of Aachen strives to drive innovative discoveries that impact global challenges. The German university partnered with DHL in 2012 on a new initiative to combat global warming. DHL worked with the university to develop its own electric vehicles as part of its mission to achieve zero carbon emissions by 2050. Currently DHL has 10,000 electric vehicles out on the roads aiming to replace all 55,000 global vehicles in its fleet to electric.

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SEE ALSO:

  1. DHL – the world’s leading contract logistics provider
  2. DHL’s innovation center driving digitalisation and sustainability
  3. DHL: Talent management within logistics
  4. Read the latest issue of Supply Chain Digital here

Supply Chain Complexity and Risk Management

As part of the Supply Chain Management: Beyond the Horizon research project, faculty and staff from the Eli Broad College of Business at Michigan State University conducted in-depth interviews with a number of organizations to gain insights into the development and implementation of various supply chain strategies, practices, and processes.

The focus was intentionally on the future and on identifying what challenges are driving supply chain decisions in the current environment. The following report summarizes key findings from our investigation of supply chain complexity and risk management obtained during our visit to VF Corporation.

BACKGROUND

VF Corporation is a global branded apparel company that focuses on lifestyle clothing, footwear, and accessories. Since its inception in 1899 as a glove and mitten manufacturer, the firm has grown, diversified, and reinvented itself multiple times. Today, its 30 brands are organized into five coalitions or loose confederations that include outdoor and action sports, jeanswear, imagewear, sportswear, and contemporary brands. The firm has approximately 64,000 employees, sales of $12.4 billion (2015), and a consistent track record of annual sales and earnings growth. The firm is highly diversified across brands, products, distribution channels, and geographies, which provides a strong competitive advantage relative to single- brand competitors.

Because of its focus on lifestyle brands, the firm must remain focused on its consumers and their evolving behaviors and preferences. The firm has four key components in its business strategy:

  1. Lead in innovation (drive new products and new technologies to support evolving consumer needs and tastes)
  2. Connect with consumers (engage consumers in new and meaningful ways)
  3. Serve consumers directly (reach consumers across multiple channels, wherever and whenever they want)
  4. Expand geographically (take advantage of scale to reduce risk and drive competitive advantage)

Read more at Supply Chain Complexity and Risk Management

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Clarkson University Delivers 17th Global Supply Chain Management Executive Seminar to Corporate Professionals

Earlier this month, Clarkson University’s Global Supply Chain Management (GSCM) program presented its 17th annual Executive Seminar, delivering state-of-the-art education to corporate professionals.

“We are pleased that our executive seminar continues to attract supply chain professionals from several highly respected global companies,” said Professor Farzad Mahmoodi, the Joel Goldschein ’57 Endowed Chair in Global Supply Chain Management and director of the program. “It’s a strong endorsement of the quality of our faculty and the relevance of our curriculum.”

The annual, four-day, on-campus program attracted participants from Amazon, Toyota, Stanley Black & Decker, Xerox, Lockheed Martin, Verizon, Corning, Raymond Corporation, Entegris, Par Technology and Indium.
The participants came to Clarkson from 12 states: California, Colorado, Connecticut, Illinois, Indiana, Maryland, Massachusetts, Michigan, Minnesota, New Jersey, New York and Ohio.
In addition to lectures by faculty experts, the seminar utilized a highly interactive format that employs team and hands-on activities, including simulations and negotiations exercises. Participants also benefited from networking opportunities with industry professionals and Clarkson faculty.

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A Portrait of the Supply Chain Manager

It’s been written that a career in supply chain management can be like climbing a mountain.

While there is often a map for the path forward in professions like accounting, medicine and the law, in supply chain management – as with mountaineering – there are any number of paths that can reach the summit.

Those were among the findings from a research series conducted for the Council of Supply Chain Management Professionals (CSCMP) and published in the July/August 2015 issue of Supply Chain Management Review, and reinforced by research conducted by McKinsey & Company and Kuhne Logistics University.

The latter, for instance, found that while many supply chain management executives had experience in logistics, procurement and sales/marketing, “… a surprising number of supply chain executives are appointed without any previous exposure to SCM…in our sample, supply chain executives spent 88% of their previous career span outside the SCM function.”

Are those findings consistent with readers of Supply Chain Management Review and members of APICS Supply Chain Council? And, if so, who is today’s supply chain manager? And, how did he – or she – navigate to their position on the mountain?

Did they start out in the supply chain going back to their college days, or, as in the McKinsey study, did they come into the profession from other parts of the organization?

Moreover, what are their duties today and how do they see the job changing?

Read more at A Portrait of the Supply Chain Manager

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Tianjin Catastrophe Reinforces Need For Supply Chain Risk Management

A recent University of Tennessee-sponsored survey of leading supply chain executives helped quantify the continued apathy surrounding the proper assessment and management of supply chain risk. For starters, the survey found that none of the companies surveyed use third parties to independently assess their risk, 90 percent don’t even quantify the risk themselves, and while 66 percent acknowledged the existence of corporate officers focused on managing legal compliance, none of these same professionals touched the supply chain.

If HR can be directed to manage against the cost of a potential employee discrimination suit, how did global companies get to a place where they still don’t see the wisdom in protecting themselves against a potential supply chain disaster?

The Port of Tianjin, China’s third largest, just blew up. For companies that rely on that port and that didn’t have a crisis playbook in place, the lessons they’re about to learn could be fatal. If you saw the video of the explosion and are even remotely familiar with Chinese industrial accident rates (70,000 lives lost each year) then you know that the Chinese media is under-reporting the story and that “business as usual” at the Port of Tianjin is likely on indefinite hold.

But here’s the rub: if the Longshoremen at the Port of Long Beach decided to strike unexpectedly next week, the business effects for those without contingency plans could be strikingly similar. That’s how tenuous multi-tier supply chains can be.

Supply chain risk management (SCRM) is defined as “the implementation of strategies to manage both everyday and exceptional risks along the supply chain based on continuous risk assessment with the objective of reducing vulnerability and ensuring continuity.” It’s yet another operational discipline that technology has recently enabled to new heights, as the ripple effects of a catastrophic supply chain event are not intuitive. In fact, they’re usually mind-boggling.

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