Now is the time to act to ensure organisational resilience against Covid-19. Achieve this through Firemind’s intelligent digital supply network technologies, specifically designed for optimising global supply chains in times of crisis
Global pandemic, Covid-19, has left businesses with no choice but to re-strategise their traditional supply chain model. With over 65 countries worldwide confirming positive cases of the virus, and in particular countries such as China, Japan, Iran, South Korea and Italy being heavily affected, special measures are being taken to secure containment as effectively as possible.
The influence of Covid-19 on supply chains is yet to be determined, however, one certainty is that global financial and economic consequences will echo throughout international supply chains, affecting everything from basic materials to complete goods to logistics and shipping.
It is predicted that short term, the consumer sector will suffer the greatest. During the past month, major consumer organisations have scaled down their profit forecasts and decreased consumer demand throughout China.
So, how can you and your business react to this sudden problem?
Despite Covid-19 forcing companies to re-evaluate their international supply chain procedure and speed up the deployment of a digital supply network workflow, short-term measures need to be put in place to combat immediate obstacles.
Some of which include:
Confirm all employees are aware of Coronavirus symptoms, and equip your team with knowledge needed to prevent the virus from spreading.
Equip your business model for higher levels of absent staff
Ensure secure IT infrastructure is in place to support remote working
Assemble practical succession plans for leadership positions
Create a treasury strategy for cash flow and management
How to approach if your supply chain operates, produces or distributes out of china, or any of the affected countries:
Aim for optimum visibility on Tier 1 supplier inventory and purchase order completion status.
Communication here is key. Discuss with your key suppliers to find out if they can transfer production to other locations.
Initialise replacement sources of supply.
Activate secondary supplier relationships where necessary in order to confirm extra inventory and volume. Identify new suppliers that operate in non-affected regions.
Refresh stock policy and planning framework
It is likely your organisation will not have stock buffers equipped to deal with the immensity of the Covid-19 outbreak. Refine your inventory strategy to eradicate the risk of shortages.
Plan ahead for factory closures.
It is here that an agile resolution will be required.
Prepare to scale down production timelines.
Focus on what key products you’ll continue to produce during this time, and take into consideration material inventory shortages and inevitable refined production times.
Consider a replacement for outward logistics.
As a result of Covid-19, ports will become increasingly congested, the amount of delivery drivers will reduce and air freight capacity will become limited. Organisations will be required to guarantee capacity and quantity with logistics partners.
Conduct worldwide scenario planning.
Despite a large emphasis being placed on China, currently, the virus has successfully spread to over 65 countries. Meaning further impact will be made on ecosystems, supply chains and society. Organisations need to contemplate running a stress test for the business.
Ready your business for a channel move by ensuring ecommerce capacity.
There is no doubt you’ll experience a huge peak of online shopping in the upcoming weeks and months. Ensure your business has the ecommerce capabilities to meet supply and demand.
It is no secret that global supply chains are vulnerable to a large number of risks, one of which has been highlighted through the worldwide pandemic of Covid-19. With Firemind, you can optimise your supply chain model to ensure it is equipped to withstand global disasters, and reduce the potential points of failure within it, through the power of smart technologies such as digital supply networks.
Digital supply networks provide you with vital end-to-end visibility across your supply chain, allow you to collaborate seamlessly across vendors, and become truly agile and responsive in times of disruption.
Find out how Firemind can transform your business in a time of need and contact us now.