How Companies are Handling Supply Chain Risks?

 Digital Transformation is Inevitable

All sectors and companies are adjusting their strategies to change with changing customer patterns with small movements and supply interruptions. Brands and sellers are transferring their practises through digitalization. Coronavirus has forced businesses to streamline their online operations, but many businesses have already adapted to it. Live-chat or end-to - end process automation were some of them. New processes are evolving overnight and the focus is shifting to try new technologies to speed up the digital transformation. disruptions.

This is pushing us to ask: Has COVID-19 accelerated digital transformation?

 FMCG item sales are growing rapidly

Due to the demand caused by panicked clients, sales of FMCG products are rising rapidly. During this pandemic, customers want to store vital goods and commodities. The current uncertainty surrounding the pandemic is contributing to an increase in consumer spending on critical commodities. Governments also relaxed the development rules for critical goods in many countries, allowing for quicker clearance with sufficient insurance coverage to sustain business disruptions.

 Will sellers be able to meet this surging demand?

 Definitely! All you need to do is plan your inventory and stock based on your business model and customer needs. The key to sustaining the current situation is to track the data trends over a period.

Key Takeaways for Brands

Track your inventory levels

No matter how hard you try, whether you are selling an important item or a non-essential item, there are high chances that demand will outpace supply. The extent of your inventory levels needs to be identified. This will help you prepare your inventory levels to monitor your outages. If the stock levels are limited, come up with inventive ways to capture demand.

Handle Sponsored ads in a smart way

For high volume search terms, particularly for your brand keywords, Amazon supported ads allow you to rank better. As Amazon ads are doing well during this period, this is the time to raise your ad budget. To satisfy the orders, however, you need to have enough inventory. Also, make sure you track your spending on ads and ensure that the sum remains within your budget.

Make the best use of your sponsored advertising during the time of uncertainty. You need to be smart and careful while running promotions and advertisements during times of huge demand. There are chances that your product may go out of stock.

 How sellers are responding to the pandemic?

We know that, on a large scale, this situation triggers panic among sellers. Though few sellers are concerned about the effects of COVID-19, their supply chain and sales will be crippled. While some think the effect is fleeting and much-hyped. On the other hand, there are few opportunistic sellers who explore and revamp their current portfolio with new product concepts. While the answers are mixed, the solution will be to understand the company's nature and remain connected with your business.