As we leave confinement behind and try to pick up the pace in our businesses, we are realizing the true magnitude of this pandemic outbreak. The death toll is in the hundreds of thousands worldwide, and many more are contaminated and being treated by dedicated health professionals working tirelessly 24 hours a day.
A pandemic outbreak of this magnitude has taken companies and entire sectors by surprise, with a range of effects that has acutely affected their supply chains and businesses. Observing consumer behavior, many companies do not have a real feedback on the intention of demand in the situation caused by the outbreaks, as buying patterns have been transformed. In many sectors, demand has fallen dramatically and shifted to online digital channels.
The time has come for companies to assess, recover and respond quickly to the many obstacles and challenges that still stand in the way. Building a resilient supply chain, based on the following pillars, will be the epicenter of future discussions in the years to come:
- Conduct end-to-end supply chain risk assessments and prioritize key focus areas.
- Diversify our supplier network and develop a robust risk management process
- Establishment of a safety stock.
- Assess and adjust strategic procurement priorities.
- Invest in more agile and collaborative planning and alternative supply capabilities.