Supply Chain Risk Management - COVID 19
It’s now been around 10 weeks since China first reported the outbreak of the virus to the World Health...
The coronavirus is now officially an epidemic.
It’s now been around 10 weeks since China first reported the outbreak of the virus to the World Health Organisation. There are currently more than 126,000 cases worldwide and the virus is showing no visible signs of slowing. The United States has now halted travel from Europe to the US (with the exception of the United Kingdom for now) in a bid to combat the spread of the coronavirus. In this article, Supply Chain Digital explores McKinsey & Company’s “Implications for business” report and looks at the supply chain challenges companies face amidst the spread of the deadly virus.
During the opening weeks of the outbreak, there has been major concerns about the effect on supply chains that start or go through China. There have been many factory shutdowns and disruptions have been felt all over the supply chain during Q1. Trucking capacity to ship goods from factories to ports is at around 60-80% of normal capacity, with goods facing delays of around 8-10 days on their journey to ports. There remains an uncertainty around customer demand. Customers that have pre-booked logistics capacity may not be able to use it, while customers may compete for prioritisation in receiving a factory’s output, as well as the unpredictability of the timing and extent of demand rebound could cause confusing signals for a number of weeks.
To respond to the virus, McKinsey and Company has listed seven guidelines that companies should heed:
Protect your employees - Business as usual isn’t an option. Companies can find ways to support employees that are consistent with the most conservative guidelines that might apply and has trigger points for policy changes. Some organisations are actively benchmarking their efforts against others to determine the right policies and level of support for their people.
Set up a cross-functional COVID-19 response team - Businesses should nominate a direct report of the CEO to head up the effort and appoint members from all functions to assist. Team members should step out of their everyday roles and dedicate most of their time to virus response.
Ensure that liquidity is sufficient to weather the storm - Organisations must devise scenarios tailored to each individual context. This is because important variables will affect revenue and cost in different ways .
Stabilise the supply chain - Companies must work out the extent and likely duration of their supply chain exposure that are experiencing transmission, such as tier 1, 2 and 3 suppliers and inventory levels.
Stay close to your customers - Organisations that invest in their core customer segments and anticipate their behaviours are more likely to succeed. Companies should invest in online shopping for a range of products as part of a drive for omnichannel distribution
Practice the plan - Lots of top teams don’t understand the time required in working out the plan for disruptions. Companies should use tabletop simulations to define and verify their activation protocols for different phases of response.
Demonstrate purpose - Companies are only as robust as the communities they are part of. They should work out how to play their part and support response efforts, such as providing money, equipment and expertise.
Interested in reading more? Check out the full McKinsey and Company report here!
For more information on procurement, supply chain and logistics topics - please take a look at the latest edition of Supply Chain Digital magazine.
The Ultimate Procurement & Supply Chain Event
From September 28th-30th, network with C-level executives, gain insight from industry pioneers and walk away with actionable insights that accelerate your career. By the end of the week, we promise you’ll have the skills to solve the world’s most pressing supply chain and procurement challenges.
The three-day show is an essential deep dive into the industry, with influential speakers sharing insights and strategies from their organisations, group roundtable discussions, and fireside chats. Whether you attend virtually or in person, you’ll strategise how to cope with global disruption, learn from industry leaders, and walk away with tips, tactics, and tangible connections.
How to Attend
In a COVID-disrupted era, we know that the majority of people would rather avoid travelling for events─why take the risk, right? In response to the continued disruption, BizClik Media Group has decided that Procurement & Supply Chain LIVE will offer the best of both worlds through hybrid accessibility.
That means you and your peers can attend the event in person or virtually ─ with no disadvantages for people who choose not to make the trip to the Tobacco Dock venue.
Procurement & Supply Chain LIVE will be held at the Tobacco Dock in London, an industry-leading venue that is renowned for delivering world-class events. For attendees’ peace of mind, the venue is working to the government-endorsed AEV All Secure Framework, alongside mia’s AIM Secure and ‘Good to Go’ accreditation, they will ensure that we achieve a COVID-secure environment to facilitate all of your networking needs.
Our physical venue is both historic and stunning, but it has no bearing on the information that you and your peers can gain from the event. You can still absorb it all, interact with other attendees, and enjoy the conference experience on your alternative, virtual platform.
The platform will feature live feeds from all of the stages, as well as virtual networking areas. So, if you want to avoid travel, it’s not a problem! You can still get involved and enjoy the entire experience from the comfort of your own home.
What’s on the agenda?
With keynote addresses from global leaders, dynamic roundtable discussions, and extensive networking opportunities, Procurement & Supply Chain 2021 will expand your network, deliver insight, and enhance your organisation’s reach.
Across the three-day event, a number of relevant topics and trends surrounding procurement and supply chain will be discussed.
- Tuesday 28 September - Digital supply chain
- Procurement strategy (11:30 am)
- Supply chain leaders forum (12:00 pm)
- Women in supply chain (14:00 pm)
- Procurement technology (14:30 pm)
- Wednesday 29 September - Procurement consulting
- Sustainability (11:30 am)
- Supply chain management (12:00 pm)
- Digitalisation (14:00 pm)
- Risk & Resilience (14:30 pm)
- Thursday 30 September - APAC sessions (04:00 am)
Influential executives from around the world will give their insights and professional experiences surrounding these topics, allowing you and your company to leave with valuable information.
The past year has shown how important supply chains are and the importance of managing them correctly. With increasing digitalisation across all industries, you won’t want to miss out on our great speakers and information surrounding this topic. Preparing your company for the future is key, and we are sure you will gain great insights at our three-day event.
Order now to make the most of our early-bird offer. Ticket prices increase over 50% soon! For tickets and information, head over to our event site.