Supply chain and global trade

Chief Supply Chain Officers (CSCOs) need to identify, size and prioritize the short-term impact and implement an action plan to reduce risk and financial impact due to supply chain disruption.

• Mobilize crisis management task force
  
• Get up-to-date visibility on the end-to-end supply chain data: inventory, assets, teams
• Initiate governance model with clear roles and responsibilities as well as communication protocols and reporting
• Conduct supply chain risk and impact assessment
• Analyze data (inventory, network, hubs and nodes) to match supply to demand
• Develop a short-term remediation plan, such as radical range simplification to manage through the crisis and furloughing if needed
• Quantify cost and mitigate current and potential supply and demand disruption
• Develop future-state hypothesis on key impacts to the supply chain

CSCOs should focus on building resilience into their supply chains based on new disruption scenarios.

• Understanding end-to-end supply chain risks to restarting
  • Own health and that of suppliers, customers – actions to address
  • Which products, sites, how, when
  • New normal for channels to market
  • Weekly vs. monthly supply chain and operations in recovery
• Supply chain resilience assessment, strategy and capability build out
  • Stress test the supply chain
  • Invest in creating added supply chain resilience
  • Identify and reduce key single points of failure (e.g. supply concentration)
• Supply chain visibility and risk monitoring
  • Improved data visibility for the future – digital twin for end-to-end supply chain
• Major crisis management
  • Improved crisis management
  • Supply chain risk response operating procedures

Operate a new normal in a different business environment and futureproof for the next disruptive event.

• Pressure on revenue in an uncertain market drive the imperative to reduce supply chain cost. Companies should look to optimize their infrastructure and organization:
  • Sourcing strategy
  • Product complexity rationalization
  • Manufacturing and distribution footprint
• Transform the supply chain operating model from a rigid, linear supply chain to an agile, networked ecosystem in which all parties work collectively
• Create end-to-end supply chain visibility through the development of digital twins to help react at pace to disruption