Staff shortages, restrictions in delivery routes, changes in buying patterns – how do you plan for sudden disruption?
China and the rest of the world continue to be affected by the outbreak of COVID-19 (novel coronavirus), with many more being nursed back to health by dedicated healthcare professionals who work tirelessly around the clock. Millions are displaced regionally and globally due to cautionary guidelines and travel restrictions. Global routes of all forms of transportation are temporarily disrupted for both businesses and everyday commuters.
A pandemic outbreak of this magnitude has caught companies and whole industries off guard, with a shockwave of ripple effects tearing through their supply chains and businesses. From a consumer angle, many companies suddenly do not have a clear demand signal as the outbreak has completely changed buying behaviors and patterns. In numerous industries, demand has dropped substantially or moved to online channels.
Due to health risks and personnel displacement, manufacturers are struggling to staff for normal operating capacity as labor challenges arise following a period of temporary factory shutdowns. Many enterprises have disruptions in their logistic hubs and delivery routes due to restricted locations and closures. These impacts have been felt by companies, from small third-tier suppliers to billion-dollar conglomerates, with the likelihood many will not recover for years to come.
The objective of this article is twofold:
- To serve as a point of reflection for executives navigating through the recovery process and share insights to support an accelerated recovery journey.
- A call to action for companies that are currently not set up to withstand a major unpredictable event, such as the current coronavirus outbreak, to build a resilient supply chain in preparation for future disruptive instances.
Read the full article here.