How is the coronavirus impacting the supply chain?
China has been the worst-hit, with 77,658 cases and 2,663 deaths reported. But how is t...
There are over 80,000 global cases of the coronavirus worldwide.
China has been the worst-hit, with 77,658 cases and 2,663 deaths reported. But how is the deadly virus impacting the supply chain? Supply Chain Digital takes a closer look.
Despite there being more visibility in supply chains than ever before, companies are still monitoring how destructive the coronavirus will be to their operations.
Research from The Hackett Group has shown the importance of supply chain visibility. Josh Nelson, Supply Chain Principal of The Hackett Group’s Strategy and Business Transformation Practice, affirms it’s vital to understand the risks in order to ensure the best approach. "The best thing that companies can do is simply know their supply chain risks, and preemptively develop mitigation approaches. It can also be helpful to consider increasing the levels of buffer inventory," says Nelson.
"For now, if your company or its key suppliers carries limited raw material inventory and relies heavily on Asian sources of supply, you are at high risk of disruption. Those that are currently in this predicament are actively evaluating inventory and production levels of critical components and developing alternative plans. As in other areas of business, those companies who identify specific supply risks and actively manage it, will find solutions or at least mitigate the impact. Those that don’t are at the mercy of the virus and the public response."
However, due to the coronavirus there has been a significant boom in handheld game downloads. The outbreak in China has accelerated downloads of apps and games from millions of quarantined households. The findings from analytics platform, App Annie, has shown that there has been over 222 million downloads in China from Apple’s online store since the start of February. Figures surged by 40% compared to the average for the entirety of 2019.
For more information on all topics for Procurement, Supply Chain & Logistics - please take a look at the latest edition of Supply Chain Digital magazine.
5 minutes with: Ivalua’s Sundar Kamak
Who are you?
My name is Sundar Kamak, I’m Head of Manufacturing Solutions at Ivalua. I’ve been with the company for around two years now, and I’m responsible for our industry solutions and our pre-sales team. Before joining Ivalua I spent almost 20 years in the source-to-pay procurement space, working for a number of providers. But I got my career started in manufacturing and supply chain, specifically in automotive and aerospace.
And what is currently taking up the majority of your professional time?
The last year I've been focused in helping organisations put together a digital transformation strategy, especially manufacturing companies, so they can continue to address some of the challenges they face due to the COVID pandemic.
The traditional approach of engineers designing their latest product then procurement going off to source no longer works
What are the biggest challenges facing your corner of supply chain?
We have a lot of clients coming from different backgrounds - aerospace, high-tech, automotive - and they’re feeling the pressure and the crunch. There’s a lack of product, lack of material availability, lack of resources, labour shortages. So, I work with the leadership in these organisations, try to understand what problems they're looking to solve and come back with Ivalua solutions that can help them address some of these challenges.
Where do the biggest opportunities lie?
If we look at manufacturing, it all comes back to procurement and supply chain being involved sooner in the process. The traditional approach of engineers designing their latest product then procurement going off to source no longer works. It’s important to treat suppliers like partners, which means you build trust, so they can participate very early on in the product design and product development process. It’s not done consistently in the manufacturing sector, but it will be key.