Supply Chain Disruption

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Supply chain disruption has already occurred due to COVID-19 and it’s likely to get worse before it gets better.

Measures that exist to avoid a reintroduction of the virus and new outbreaks will impact production and supply chains.

Immediate Response

For companies that operate or have business relationships in impacted countries, steps should include:

  • Educate employees on COVID-19 symptoms and prevention
  • Reinforce screening protocols
  • Prepare for increased absenteeism
  • Restrict non-essential travel and promote flexible working arrangements
  • Align IT systems and support to changing work requirements
  • Prepare succession plans for key executive positions
  • Focus on cash flow

 

For companies that produce, distribute, or source from suppliers in impacted countries, steps should include:

  • Evaluate your labour plan and match to supply flow
  • Look at your suppliers and evaluate their risk of non-performance
  • Research and create alternate sources of supply
  • Update inventory policy and planning assumptions
  • Ensure you have a good system for tracking inbound inventory
  • Prepare for plant closures or reduced work schedules
  • Plan for flexible production schedules
  • Evaluate alternative delivery options and secure contracts

 

For companies that sell products or commodities to impacted countries, steps should include:

  • Research and try to predict the change in demand for your product(s)
  • Evaluate your supply timeline as compared to the demand timeline
  • Evaluate alternative delivery options
  • Increase communication with key customers
  • Prepare for the rebound

 

If you would like more information or have any questions, feel free to contact us at 780.466.6204, or click here to send us an email.

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