In his presentation at DELIVER Europe 2024, Guido Jacobs, Executive Board Member at Amway, shared invaluable insights on how companies can navigate the complexities and challenges of modern supply chain management. With years of experience in the industry, Guido discussed how disruptions, whether due to global events like the COVID-19 pandemic or logistical bottlenecks like the blockage of the Suez Canal, have reshaped the landscape of supply chain operations.

The Impact of Disruptions on Global Supply Chains

Guido's talk revolved around the increasing frequency and severity of disruptions that businesses have faced over the past few years. From the COVID-19 pandemic to pirates attacking shipping vessels, these unexpected events have led to longer lead times, shortages of containers, and overall logistical chaos. With a global operation spanning Europe, Asia, and beyond, Amway’s supply chain has been particularly vulnerable to these disruptions. As a company importing 80% of its products into Europe, smooth and reliable supply chains are critical for maintaining business continuity. Guido illustrated how disruptions in one part of the world can have ripple effects across the entire supply chain network, ultimately impacting delivery times, inventory management, and operational efficiency.

Building Resilience and Agility in the Supply Chain

Despite these challenges, Guido believes that businesses can transform disruption into opportunity by focusing on resilience and adaptability. He emphasised the importance of creating flexibility within supply chains to respond to unforeseen events and disruptions. This requires leveraging technology, such as artificial intelligence, machine learning, and advanced analytics, to gain better visibility and predict potential risks. Moreover, companies must foster a culture of continuous improvement and agility, ensuring their teams are ready to pivot when necessary. For Amway, the ability to quickly redeploy resources, reconfigure supply networks, and maintain clear communication with partners has been key to staying afloat during turbulent times.

Five Key Priorities for Managing Supply Chain Disruptions

Guido outlined five crucial priorities that businesses should focus on to navigate supply chain disruptions effectively.

1. The first priority is to put people first, ensuring that employees are healthy, trained, and ready to handle any disruptions.
2. The second is to leverage data to improve visibility into operations and better predict potential bottlenecks.
3. Third, businesses must define segmentation to manage demand carefully and prioritise essential products.
4. The fourth priority is building a SWAT team—a flexible and responsive group capable of addressing disruptions swiftly.
5. Finally, companies need to evaluate supply chain scenarios regularly, using simulations to predict and prepare for potential future challenges.

Agility and Technology: The Cornerstones of Future Supply Chains

As Guido concluded his talk, he highlighted the need for businesses to embrace digital solutions that offer end-to-end supply chain visibility and greater flexibility. This, he believes, will be essential in ensuring long-term success and stability. The ability to quickly assess and respond to disruptions, leverage available data, and maintain clear communication with all stakeholders is the key to building a future-proof supply chain. Guido's insights reinforced the idea that, while disruptions are inevitable, the right strategies and tools can help businesses thrive even in the face of adversity.

His presentation underscored the need for a holistic approach to supply chain management—one that balances technology, people, and creativity to overcome the challenges of an unpredictable global landscape.