Coronavirus: How to Secure Your Supply Chain
Addressing Supply Chain Impact – Gartner advises supply chain leaders how to address the Coronavirus' impact to the supply chain such as materials, labor and capacity shortages in short-term, mid- and long-term actions
Gartner provides the following advice to supply chain leaders on how to deal with supply chain disruptions, shortages and logistics limitations at their website on February 3, 2020:
- Impact to Supply Chains – Include shortages in materials, finished goods and labor in impacted areas, limitations to sourcing, supply chain capacity and availability because of travel restrictions, and changing consumer demand for online sales creating challenges to logistics networks
- Short Term Actions (Do Now) – Assess, monitor and respond immediately to potential supply chain disruptions especially exposure at first-tier as well as changes in consumer spending. Ensure inventory is within reach and outside of affected areas and logistics hubs. Coordinate with legal and HR departments to understand financial implications of not being able to deliver to customers, and provide guidance to employees in impacted locations.
- Midterm Actions (Do This Quarter) – Balance supply and demand, build buffer stock, diversify supplier ecosystem, review organization’s risk management approach and work with internal stakeholders and significant suppliers to monitor and prepare for material and manufacturing capacity shortages.
- Long Term Actions (Do This Year) – Do scenario planning and create action plans. Consider alternative sources and diversify value chains. Tackle high value supplies that are at risk and mitigate any major disruption. Being more prepared than competitors can create new opportunities for when the next disruption arrives.
To read the free article, please visit their website at: https://www.gartner.com/smarterwithgartner/coronavirus-how-to-secure-your-supply-chain/
- Coronavirus: How to Secure Your Supply Chain, Feb 2020 (Gartner)
Original publication date: February 3, 2020
Date last updated: April 2, 2020