How to Successfully Master a Pandemic in a Global Distribution Network?

Abstract

The supply chain impact of COVID-19 led to varying levels of uncertainty in every country. For Hilti, a global manufacturing company supplying the construction industry, with a vertically integrated supply chain, the following specific risks arose: closures of suppliers, production plants, or country borders could lead to production stops or import stops limiting the replenishment capabilities from the supply side. To illustrate how the company copes with these challenges this business case focuses on the warehousing function as it represents the “moment of truth,” the final delivery to the customer. During the COVID pandemic Hilti benefited from the existing structure and could bring the different resilience elements—visibility, flexibility, collaboration, and control—into play. The combination of ad-hoc actions and at the same time strengthening supply chain resilience within its global logistics strategy was the key to successfully manage the delivery challenges and to keep operations up and running with limited customer impact. While business environments become more complex and uncertain, previous methods of risk mitigation reach their limits and a resilient supply chain becomes a critical key factor for future business success.