The document discusses how the COVID-19 pandemic has impacted global supply chains and manufacturing companies. It summarizes the results of a survey of Nordic supply chain managers. Key findings from the survey include: - Transparency, agility, and scalability were essential for companies during the crisis. Digitalization, manufacturing footprint, and sourcing strategy will be important going forward. - For most companies, business will return to normal but some changes accelerated by the pandemic will remain, like greater virtual collaboration. The concept of a "new normal" is really a refinement of trends already underway toward more resilient, demand-driven, and sustainable supply chains.

1. 3

2. 6
CONTENT TODAY
Demand effects
New normal
Survey results
Reshaping the supply chain

3. 7
COVID-19 has hit a lot of global manufacturing companies really hard, and most of them
have survived the crisis due to agility in decision-making
Performance
Time
Crisis
handling
Recovery
handling
Adapting to a
new normal
Sales (up or down)
Lack of supply
Delivery performance
Cost
Liquidity
Before During After
PERFORMANCE
IS HIT ON …

4. 8
Global demand has been highly impacted by COVID-19
Peak and stabilise
Dip and stabilise
Rapid rebound and growth
2020 2021
Typical scenarios for recovery

5. Demand
How has your demand curve developed so
far as a consequence of COVID-19?
How have you been impacted on demand by COVID-19?
No big
changes (+/- 5%)
Lost
sales
Big demand
increases
9
POLL

6. 10
… Or will it be back to business as usual?
WILL THERE BE A
NEW NORMAL?

7. 11
Before COVID-19, we were already on a journey to a new normal
Survey results: Implement's SCM survey, June 2020
Old normal
Steady sales and
stable growth
Long and global
supply chains
Lean supply chain
Optimised inventory
Focus on cost and
efficiency
Unstable and
unpredictable demand
Consumer shifts (online +
green shopping)
Big technology disruptions
Customer-driven SC focus
Focus on efficiency,
reliability and sustainability
Demand
Supply
Economies
of scale
Economies
of scope
New normal
Old normal
BEFORE COVID-19
New normal

8. 12
The media and the consultancy business are talking about a new normal
after COVID-19 – but what is that about?
A new
“new normal”?
AFTER COVID-19

9. 13
SO, WE CREATED A
NORDIC SCM SURVEY
13

10. 14
From 1/6-17/6, we carried out
34 interviews (the goal is 50+)
34 [+] Global SC
Nordic
[SE, DK, DE]

11. 15
Transparency, agility and scalability have been essential during COVID-19
Survey results: Implement's SCM survey, June 2020
Importance of SCM focus areas (during COVID-19)
0 1 2 3 4
Manufacturing footprint
Sourcing strategy
Scalable ramp up/down
Agility decision making
Transparency
Digitalization
Integration + collaboration
Automation
Offshoring
Outsourcing
During

12. 17
Transparency, agility and scalability have been decisive during COVID-19,
and digitalization, footprint and sourcing strategy are important going
forward
Survey results: Implement's SCM survey, June 2020
0
1
2
3
4
Manufacturing
footprint
Sourcing strategy
Scalable ramp
up/down
Agility decision
making
Transparency
Digitalization
During After
Top 3 areas that have been decisive
during crisis handling
Top 6 areas that are important going forward

13. 18
SO, WILL THERE BE A
NEW NORMAL?

14. 19
WELL, YES, FOR SOME !
Staycation and less
business traveling
Local governmental
requirements
Travel and tourism Healthcare
YES! (-) YES! (+)

15. 20
AND FOR MOST – NO!
Back to business as usual Strategic initiatives will
be accelerated
For most For some
NO! NO!

16. 21
HOWEVER, ONE THING WILL
CHANGE FOR EVERYONE
Virtual collaboration
Everyone
YES!

17. 22
Therefore, the new normal has been accelerated
ACCELERATED
Bullwhip aftermath
Regional/local SC
Digitalization and demand sensing
Virtual collaboration
Risk awareness and risk
management
Health, safety and environment

18. 24
YOUR NEW NORMAL
24
What supply chain focus will be most
important in your “new normal”?
Manufacturing
footprint
Sourcing
strategy
Scalable ramp-
up/down
Agility decision-
making
Transparency Digitalization
Integration
+ collaboration
Automation Offshoring &
Outsourcing
Sustainability
POLL

19. 25
Key questions for reshaping the supply chain for future needs
1
How might we revise our planning concept to handle bullwhip aftermath and
the need for more agility in decision-making?
How might we automate physical processes, admin processes and data capture
to increase transparency and be able to do more remote services?
How might we reshape the supply base for more collaboration
and resilience?
How might we redesign our supply chain (footprint/flows) to create resilience to
handle bullwhip aftermath, consumer demand shifts and prepare for the next crisis?
How might we accelerate the digital transformation to create the transparency that is
needed to handle increased uncertainty -> for agile decision-making and execution?
How might your supply
chain be reshaped to the
new normal that you will
face in your industry?
2
3
4
5
6
How might our operating model be adjusted to the new normal
that you will face in your industry?

20. In the future, we need a GLOCAL manufacturing and distribution footprint
Distribution strategy
“Where to stock, what to stock and how
much to stock?”
Healthcare will face new requirements.
Local stock will be an expensive
solution. Innovate new service
offerings. Go GLOCAL!
How might we redesign our supply chain (footprint/flows) to create resilience to
handle bullwhip aftermath, consumer demand shifts and prepare for the next crisis?
The answer is a GLOCAL setup and more collaboration.
DISTRIBUTION
Sourcing strategy
“Should we have dual sourcing on more
components?”
Rather go into deeper partnerships with
more integration and collaboration.
Focus on scalability.
SOURCING
Manufacturing strategy
“Should we take home all our
production from China?”
Design for regional/local setup to
secure availability (insurance)
– go GLOCAL.
MANUFACTURING

21. 27
What are the strategic initiatives that need to be reconsidered?
Structure
Make/buy, (dual)
sourcing, GLOCAL
manufacturing and
distribution footprint.
Transparency
Overview of
inventory and order
promises across the
external supply
chain, demand
sensing.
Agility
(and antifragility)
Shorter planning
cycles, agile
decision-making
and execution,
scalability/flexibility.
Alignment
Move from silo to
value stream focus,
vertical integration.
Risk management
End-to-end work on risk exposure, risk transparency and proactive risk management.
Go green
The sustainability
agenda will be
accelerated.

22. 28
Supply chains will not be
designed just for efficiency but
also for reliability and
sustainability.
KEY LEARNING POINTS
28
Overall, the New Normal
seems rather to be a
refinement of the already
ongoing “new normal” – at
least for global companies.
The most important focus areas
going forward for supply chain:
digitalization (demand sensing),
scalability (supplier collaboration)
and structural redesign
(GLOCAL).