COMPANIES need to have the right strategy to outperform in order to accelerate their recovery from the Covid-19 crisis, according to a management consulting firm.
Following the decline in new Covid-19 cases, US-based Bain & Company suggested management teams take an “insights to action” approach to their business systems to manage the bursts of demand, starting with anticipated customer behaviours post-crisis.
“Companies will scramble to capture pent-up demand or adjust for weeks of overserved demand.
“The picture is further complicated by wide variations in when and how the widely different markets come back online or whether people are forced back into confinement with subsequent outbreaks of Covid-19,” the firm said in its analysis report released today.
It suggested that companies use a combination of predictive and prescriptive analytics, scenario simulation and early-warning detection to forecast demand changes almost in real time.
“They can glean, analyse and merge data from their online channels, stores, social media, weather, news and other third parties.
“Leading firms will not only protect supply chains from coronavirus-related disruptions and define flexible plans to serve customers during the recovery, they will also mitigate future risks and turn supply chain resilience into a source of competitive advantage,” Bain & Company said.
It also urged companies to seek out signs of changing customer expectations and adjust their distribution models based on new behaviours, including the possibility of accelerating the move to digital channels.
“What’s become clear in the crucible of this crisis is the critical need to improve three related but distinct capabilities: prediction, adaptability and resilience. Companies are rapidly deploying tools and systems to improve prediction, with some good outcomes.
“While this crisis poses challenging questions, it also presents some unique opportunities to learn. In many industries, business shifted to 100% digital overnight,” it said.
The firm said companies should be on the lookout for the answers to several key questions, such as the “big idea” that could shape the industry and the company for the next decade, the trends, customer behavioural shifts as well as their respective adaptability and resiliency in the light of the changing business landscapes. — April 28, 2020, Bernama
