What Coronavirus means for your supply chain strategy

The Coronavirus (COVID 19) outbreak has created an unprecedented and insecure situation across the globe. For our health, our work, our existence. No one knows for sure how it is going to develop in the next months.

What is already sure is that companies all over the world stopped operating, production sites closed, export of various products decreased and many people are unable to work. Those are all serious aspects influencing your supply chain severely, now and in the future.

Implications for your supply chain

Already in the beginning of March, several companies needed to stop producing in Korea due to no deliveries of materials from China. By now, the entire automotive industry and many other industries had to more or less shut down their entire production.

Companies whose supply chains are affected, might be encouraged to build up more resilient and potentially less global supply chains. Companies which are not yet affected will be busy finding out which parts of their supply chains might be affected sooner or later.

Going beyond short-time crisis management

To emerge stronger from the crisis, companies need to look beyond short-time crises management. It is time to enable a pro-active supply chain management to be able to identify and tackle future risks.

While for many sustainability is not the first priority during the crisis, sustainability stays one of the most pressuring issues for mankind: Our natural resources are limited and the consequences of climate change affects us all. If the crisis requires to build up new supply chains, why wouldn’t we want to create a more sustainable supply chain? The good news is: Knowing who supplies your supplier is the baseline for both – resilient and sustainable supply chains.

Start to map your supply chain today

With supply chain mapping, you get an overview of the entire supply chain network with all facilities involved and their exact locations. Starting from here, a pro-active risk management becomes possible. On the one hand you can monitor disruption risk, assure social compliance and identify carbon hotspots. On the other hand you can take action and collaborate with your suppliers to achieve improvements in the entire supply chain.

As not all of your employees might be busy with crisis management, now is the right time for change. Supply chains are in everyone’s focus, therefore, we experience that suppliers are currently especially willing to share information on their deeper supply chain. Moreover, since many facilities stopped operating, suppliers now have the time to deal with tasks which normally might drop out of side.

Using cloud technologies to discover the supply chain, all that is needed to collaborate along the supply chain is a web browser and internet connection – a task which can easily be done from home. In case you want to know more about cloud-based supply chain mapping, download our whitepapers, watch our webinars, or read our blog.

Wishing you all the best to overcome the crisis!


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