Managing the Coronavirus Risk to the Supply Chain

Managing the Coronavirus Risk to the Supply Chain

A year ago, who could have predicted that every business would be affected by a novel coronavirus (COVID-19)? Unfortunately, we’ve all learned the truth of the matter. In the months since the disease was first classified as a pandemic, no industry in the country has been spared.

Troubles in Supply Chains 

Consumers across the country have been forced to change their buying habits. Some businesses have been forced to close, while others have faced unprecedented runs on essential products. Dramatic surges and dips in supply and demand are everywhere. It’s been hard on supply chains across the country and around the world.

Sourcing has become challenging, leading to shortages in product inventories. Supply networks are limited, and alternative routes and transportation options constrained. Stay-at-home guidelines or sickness are creating labor shortages. Smart business leaders have evaluated these conditions and decided to invest in resiliency.

Taking Stock, Making Change

These and other challenges have prompted leading warehouse and facility companies to take concrete steps to monitor and strengthen their supply chain operations. They are looking across their businesses to create new processes and systems, strengthen existing ones, and keep a watchful eye on supply chain best practices.

At the top of their priorities is the safety and health of employees. Leading companies are communicating clearly and often about risks to workers’ health and safety. When they can, they offer work-at-home or hybrid options to limit virus exposure.

Companies are making changes designed to boost their ability to anticipate and respond to new and emerging supply chain challenges. For many, the steps will become part of a more strategic investment in supply chain integrity. They include:

● Building new teams to evaluate inventory risks and safety
● Developing new or strengthened distribution monitoring processes and systems
● Contacting suppliers more frequently to monitor risk to distribution and inventories
● Identifying alternate supply sources
● Making plans for critical suppliers when supply chain disruptions occur
● Optimizing manufacturing and delivery capacity
● Working with sales and operations teams to better pinpoint demand
● Prioritizing supplies and inventory for potential demand spikes
● Strengthening risk management plans
● Balancing current inventory with future demand

COVID-19 continues to shake supply chains to their core, and some companies are already failing as a consequence. Those that succeed will be those who planned for these contingencies or adapted quickly to new transport, logistics, and storage solutions. A robust risk management plan that takes our new reality into account and an educated workforce can help your company come out stronger when we’re able to return to normal life.

Unfortunately, the global crisis isn’t over yet. But with the right choices and innovative solutions, we can work together through the challenge and meet a better, brighter future. 

[Based on PartsBrite.com blog post]