Capgemini study on COVID-19 anticipates solutions for supply chains

Due to the urgency of this issue, the study focused on immediate and short-term transformations.

As for the immediacy, the study suggests four measures:

- Establishing a command centre

The command centre will be a dedicated crisis response team that closely monitors the progress of the situation and takes immediate action.

- Create visibility on the operations and vulnerabilities of suppliers and logistics partners

Companies need a clear and diversified view of their chain so that they can anticipate possible problems and act accordingly. The study also highlights that it is also necessary to know your suppliers' suppliers.

- Financially support suppliers and logistics partners in difficulties

In an integrated supply chain, the failure of a critical supplier may affect all players in the chain. Supporting partners at this critical moment, especially the weakest ones, may be an added value later on. The priority of partners should be established according to their importance to your supply chain.

- Strengthen cash flowmanagement

Maintaining flows and requirements are key for organisations looking to stabilise their operations. They should look at measures that conserve cash flow in these difficult times, such as delaying large expenses and cutting back on discretionary spending.

Regarding the short-term ones, the Capgemini study considers that companies should:

- Reassess customer demand, improving forecasts and aligning operations

Sales and operations planners will need to create a profile of future consumer demand, simulating various recovery scenarios before finalising production and logistics decisions.

- Build foundations for a return to normal operations

Companies should assess the strategies to be adopted to resume operations and develop a plan to enable them to return to work in a phased manner. It is also important to create greater agility within the supply chain strategy.

- Pick up the pace of operations recovery and prepare to start again from scratch

Create new production plans for a long-term refurbishment phase and assess production priorities and potential bottlenecks. It is important to start by developing regulatory stock, especially in complex parts that require collaboration with several suppliers. The study also states that the network should be diversified and partners should be involved at an early stage.

The full study can be accessed via the Capgemini website.

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This article is republished in partnership with Supply Chain Magazine - Read the original article here.