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Stabilizing Supply Chains in Response to COVID-19: - Coggle Diagram
Stabilizing Supply Chains in Response to COVID-19:
Regional Differences Complicate Supply Chain Management:
A global supply chain is affected not only multiple times as goods are transported from one region to another, but also in different ways depending on where a region currently resides on the infection curve. The global value chain for computer manufacturing illustrates complexity.
Supply chain teams must orchestrate a response that takes into account the status of infections in various regions around the globe on top of the usual inter-dependencies in the value chain.
A Three-Phase Lockdown Cycle:
In-Lockdown:
Stabilize Operations. Once the lockdown begins, teams seek to maintain continuity during the crisis by prioritizing and reallocating activities and flows.
Post-Lockdown:
Ramp-Up Post-Crisis. After the crisis subsides, teams ramp-up the supply chain to pre-crisis levels or higher to capture pent up demand. A strong continued and dynamic response is required during this phase to prevent a second lockdown.
Pre-Lockdown:
Contain Impact. Initially, teams revise policies and processes to limit the spread of the disease and minimize its impact on supply chains.
Follow a Stakeholder-Centered Approach:
This team must be enabled to drive rapid and accurate decisions in real-time.
Decision making is supported by tailored analytics and AI tools, as well as dashboard visualizations that provide a single source of truth.
In the absence of a control tower, it is important to be pragmatic and get the war room up and running in a few days with the supply chain information that is most relevant for decision making.
Follow a Stakeholder-Centered Approach
The program to stabilize the supply chain should address five key objectives:
Preserve cash and optimize use of scarce resources
Build more resilience in the supply chain
Ensure continuity of the supply chain and manage customer satisfaction
Prepare the supply chain to win during the rebound and new normal
Focus on the safety and well-being of people
Team members can work in a “virtual war room” in which they track data and perform scenario simulations.
A program to stabilize supply chains across these three phases should be led by a supply chain emergency response team that is embedded in the corporate-level emergency response activities.
To get started, supply chain leaders can take immediate actions across four topics. The actions should be guided by the answers to key questions:
Organize your response
Conserve your resources
Understand your exposure
Coordinate across the end-to-end chain
The program to stabilize the supply chain should address five key objectives:
Preserve cash and optimize use of scarce resources.
Build more resilience in the supply chain.
Ensure continuity of the supply chain and manage customer satisfaction.
Prepare the supply chain to win during the rebound and new normal.
Focus on the safety and well-being of people.
The specific actions to address these objectives should be tailored to each supply chain stakeholder; people, planning, supply, warehousing, and transportation and logistics; and differ depending on the lockdown phase.