The COVID-19 pandemic has tested the resiliency of supply chains in unprecedented and unanticipated ways. EY checklists and insights can help you navigate the now, next and beyond of 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