COVID has Reinforced the need for Supply Chains

Disruptions in any business are inevitable, however, the COVID 19 pandemic is less localized and the long-term impact on individual companies and entire industries is still unknown. It does, though, serve as the latest reminder of the importance of making supply chains more resilient to stresses.
These actions should be taken in parallel with steps to support the workforce and comply with the latest policy requirements:
1. Create transparency on multi-tier supply chains, determining the origin of supply, and identifying alternative sources.
2. Estimate available inventory along the value chain and enable delivery to customers.
3. Assess realistic final-customer demand and respond to (or, where possible, contain) shortage-buying behavior of customers.
4. Optimize production and distribution capacity to ensure employee safety.
5. Identify and secure logistics capacity.
6. Manage cash and net working capital by running stress tests to understand where supply-chain issues will start to cause a financial impact.
Disruptions are inevitable, but good supply-chain practices help ensure that businesses are better prepared. At ThoughtStorm, we help our clients navigate disruptions today and adapt to changing markets and business dynamics in the future.