Supply chain and global trade

COVID-19 enterprise resilience checklist

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Supply chain and operations functions: key considerations

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