Supply chain disruption has already occurred due to COVID-19 and it’s likely to get worse before it gets better.
Measures that exist to avoid a reintroduction of the virus and new outbreaks will impact production and supply chains.
Immediate Response
For companies that operate or have business relationships in impacted countries, steps should include:
- Educate employees on COVID-19 symptoms and prevention
- Reinforce screening protocols
- Prepare for increased absenteeism
- Restrict non-essential travel and promote flexible working arrangements
- Align IT systems and support to changing work requirements
- Prepare succession plans for key executive positions
- Focus on cash flow
For companies that produce, distribute, or source from suppliers in impacted countries, steps should include:
- Evaluate your labour plan and match to supply flow
- Look at your suppliers and evaluate their risk of non-performance
- Research and create alternate sources of supply
- Update inventory policy and planning assumptions
- Ensure you have a good system for tracking inbound inventory
- Prepare for plant closures or reduced work schedules
- Plan for flexible production schedules
- Evaluate alternative delivery options and secure contracts
For companies that sell products or commodities to impacted countries, steps should include:
- Research and try to predict the change in demand for your product(s)
- Evaluate your supply timeline as compared to the demand timeline
- Evaluate alternative delivery options
- Increase communication with key customers
- Prepare for the rebound
If you would like more information or have any questions, feel free to contact us at 780.466.6204, or click here to send us an email.
