As 2019 came to an end, following a difficult trade war between giants, supply chains all across the globe are now facing an additional disruption caused by the lethal Coronavirus. Even when the month of April rolled in, many countries are still struggling to maintain the even flow of the supply-chain of other resources and commodities. The evolved virus’s impact on international supply chains had spread beyond China and eventually and yet not so surprisingly, managed to create knock-on effects in other parts of the globe as well, like so many of us know that major countries all around have had been recumbently dependant on China for raw resources are more.
Many businesses are able to mobilize their operations quite rapidly and are able to set up crisis-management mechanisms effectively, ideally in the form of a nerve center. Typically, the focus is naturally short-termed. Though, how can supply-chain leaders also prepare for the medium and longer terms—and how they manage to muster enough resources to build-up the resilience that will see them through the other side of this Corona pandemic?
India’s largest biscuit manufacturer(by volume), Parle, is making do with only 15% of its total hired labor force. Mayank Shah, products category head, said while the capacity of utilization has improved from 10-15% to about 25%, logistics to have improved, but on the labor front, the biscuit brand is facing a major concern. And with the rising number of confirmed cases/deaths and the prolonged lockdown, the situation “will not improve until trains and buses start operation”.
It’s the same story across in other bluechip companies in consumer-facing businesses. An ITC spokesperson said: “Essentials factories have been operating with restricted hours and reduced workforce”, and that “manpower shortages and availability of trucks” are major challenges.
Here, we arrive at a point where we just have to make things work for the next 90 days. If the situation doesn’t get better that is.
WHAT TO DO THEN?
In the current scenario, we can observe that a complete short-term response means tackling the six sets of issues that require rapid action, across the end-to-end of a supply chain.
These actions should be taken parallel to each variant step to help support the immediate workforce and allow you to comply with the latest policy requirements as well:
- Create transparency on every tier of your supply chain, establish a list of critical components, determine the origin of supply and identify alternative sources.
- Estimate all available inventories along the value chain, including spare parts and after-sales stock. To be used as a bridge to keep production running while enabling delivery to customers.
- Assess every realistic final-customer demand and respond to (or, contain, where possible, etc.) shortage-buying behavior of customers at all times.
- Optimize production and distribution capacity to ensure employee safety, enable them with personal protective equipment (PPE) and engage them with communication teams. To share infection-risk levels & work-from-home options.
- Identify and secure logistics capacity, estimate the capacity and final acceleration whenever possible and be flexible on your transportation modes, whenever required.
- Manage cash and net working capital by running regular stress tests to understand where supply-chain issues can start to cause a financial impact.
Finally, when coming out of the global crisis, governments and companies/brands alike should take a complete 360°scope look at their respective supply-chain vulnerabilities and the jerks that could expose them much as the coronavirus has. The detailed responses, once compiled, can reveal major opportunities for sellers and retailers—for example, using current and predicted scenario analyses to review the structural resilience of each critical logistics node, route, and transportation mode. It can reveal weakness even when individual components, such as important airports or rail hubs, may appear to become resilient.
But with other resources and businesses that come secondary, such sectors to are reviving their paused operations and uplifting their customers on social media with the news of being able to reach them soon. Now, when looking for the best digital marketing company in Kolkata,
you will find that Go Futurenet is one of the most sought after digital marketing service providers in most parts of the country.
Choose wisely on the game to restart your new post-pandemic business endeavor with one of the best creative design and marketing agency in Kolkata.