When looking back to the Paris agreement agenda, voted in 2016 and with an objective of implementing key actions to work out the ongoing climate changes. New regulations for emissions of pollutant were created and should be implemented around the globe before 2030.
However in 2020, the COVID-19 global pandemic situation has created the obligation for countries to control public safety rules and for companies to re-think their QHSE strategy and Operating processes, imposing the need to go for more remote solutions and digital technology.
As a global trend has come the need to continue to maintain the same margin with more stringent environmental rules. In reality many business models have been challenged and suffer from the measures imposed and may be not required moving forward.
Moving forward post covid-19, new technologies and business models are now arising meeting the new markets requirement and corresponding to the way the global economy will shape up.
A good example would be how the energy market and the automotive market are now switching from a traditional oil era, to new clean energies mix market. Meaning that these markets will need to search for new alternative technical solutions, new sources of supplies for products and services allowing them to meet the new consumers needs and new regulations imposed.
Nowadays we can see global issues related to the increase of new consumers needs, not met yet by the suppliers not having the sufficient capacity yet to provide the global demand. Such shortage of new technology and services is then triggering the over reactions, such as to orders greater quantities for storage, which is creating a shortage of supplies in many key markets such as electronics, automotive equipment, raw material or others supplies related to the new technologies.
Government around the globe have now started to impose new tariff on critical products and commodities, meanwhile inviting key players in key market to move back and increase their local capacity.
What should you do then ?
- Don’t Panic. The global demand is increasing global but not at the same pace around the globe. It is important to understand where the demand is and why it is needed. Working on the forecasting of your customers needs will help to understand the consumers market trend and size moving forward.
- Get Figures. Identify your company capacity and your supplier’s capacity, by product type and compare this information with the consumers market trend predictions.
- Align your capacity. Take a strategic approach to meet the future demand by considering additional external resources or by organic growth. Make sure that your organisation will be able to meet the new requirement in terms of Quality, cost and delay to meet perfectly the new consumers expectations.
- Secure your supplies. Limited suppliers capacity available means a suppliers market, so the key target here will be to secure the supplies by entering into a partnership agreement with simplified purchasing processes and predefined terms for the partnership moving forward.
- Leverage your relationship. by creating more tight daily interaction with your key suppliers and make sure their internal process are implemented as per the T&Cs agreed.
- Go Digital. Consider that new Digital solution such as our Cyber Physical System will help you to manage all aspects or your interaction and will be in line with the new stringent safety and environmental rules.
- Think out of the Box. Considering that new ideas and skills are always brought by fresh blood from the market. The politically correct unsaid rules will not help you to think different. Considering to hire new employees with new skills or a transition manager or external consultants will always make the difference.