I’M CJ JACKSON, AND THIS IS THE BUSINESS REVIEW
AFTER SERVING IN THE ARMY CORP OF ENGINEERS, KERRY MCNAIR, PRINCIPAL AT JAMPSON CONSULTING, SPENT HIS CAREER IN SUPPLY CHAIN MANAGEMENT WORKING WITH COMPANIES SUCH AS WALMART, TARGET, AND PROCTER AND GAMBLE. MCNAIR PROVIDES INSIGHT INTO WHAT HAPPENS WHEN DISRUPTION HITS THE SUPPLY CHAIN.
“My area of supply chain is consumer pack goods. Stuff you buy in the store. Supply chain has always been about planning and risk. And you try to get the best performance. So what the pandemic did, it just introduced a lot more risk, and it caused us supply chain folks to do the same things that we were doing but think about risks that we probably didn't have to plan for before or as much.”
“Emory University did a study that said when there's something that's out of stock when you go to the store, there's only five things that you'll do. You'll either not buy anything or you'll buy a different brand or you'll buy a different item, or you'll go to a different store and get what you're looking for, or you'll come back another day. So in two of those five cases, my company will lose a sale, and two of those five cases that retailer would lose a sale.”
WHEN RISKS ARE HIGH, MCNAIR SAYS SUPPLY CHAINS TAKE CERTAIN MEASURES TO ENSURE CONTINUITY OF SUPPLY.
“Being out of stock is so significant. We try to minimize the times we're outta stock. And when risk is high, then you can be in stock easier if you have fewer different variations.”
“Another thing is collaboration. You're always getting something from somebody sourcing ingredients or packaging or something.”
“The last, and the most important one during the pandemic, is contingency. What do we do if this happens? What do we do if the plant shuts down? What we do if our single source can no longer supply us?”
THE BUSINESS REVIEW IS A PRODUCTION OF LIVINGSTON AND MCKAY AND THE HANKAMER SCHOOL OF BUSINESS AT BAYLOR UNIVERSITY.
