The global COVID-19 pandemic has become the touchstone for a remarkable year that has spelled disaster for many businesses, big and small. It has also impacted supply chain management for companies all over the world. The impact of COVID-19 on supply chain management can be hard to quantify, given that there are so many moving parts to a typical supply chain, on top of the fact that the pandemic rarely affects companies in clearcut ways. While some companies in more affected regions may see entire factories shut down, many companies are affected more subtly, such as a depleted workforce. As with many things in life and business, identifying the problem is the first step towards curing it.
Identifying the impacts of Coronavirus on SCM
For companies in the most high-risk regions of the world, the pandemic’s effects are often easy to identify. Lockdowns force prolonged closures, and for many businesses, it becomes a matter of sink or swim. Additionally, while quarantine measures are essential for protecting lives and containing the virus’s spread, one affected worker can lead to a severely depleted workforce and huge backlogs. It doesn’t take an expert in supply chain management to see how this can negatively affect your operations. When your output relies on many separate businesses, from raw materials sources to shipping and logistics, slowdowns at any stage can significantly reduce the capacity of your fulfillment network.
There is also the impact on customers to consider. The restrictions on many retail outlets in terms of sanitation measures and limited capacity—combined with the reduced number of people willing or able to shop in person—inevitably affect the demand for the services and products businesses provide. For many companies, this can mean a drop in orders for your primary products, but it can also mean unexpected surges in demand for specific products, such as masks and other essential PPE. Most businesses are primarily surviving based on how quickly they can adapt to swings in demand and remain relevant to consumers’ needs worldwide.
How our SCM software can mitigate the effects of a pandemic on your supply chain
The pandemic effects are widespread, and most companies are looking more closely than ever at their supply chains to ensure they can support the entire enterprise moving forward. For some, this means trimming the fat, changing suppliers, or even overhauling their sourcing and production approach. For others, it may mean considering how best to use predictive technology and SCM software to streamline their operation and identify issues far in advance.
The Suuchi GRID can help in both respects. Our platform facilitates transparency and communication throughout every aspect of your supply chain, connecting you with everyone, from suppliers and designers to logistics. Having a full picture of your supply chain allows you to react and adapt quickly should one of your suppliers fall behind or even be forced to close due to lockdown restrictions and safety measures. Use the GRID to communicate fulfillment and sourcing requirements to your existing partners, or make use of our vast network of suppliers and manufacturers to pick up the slack and meet your company’s high standards of ethics and quality.
These unprecedented times are a challenge for businesses of all kinds. The key to not only surviving the pandemic but flourishing afterward starts with reinforcing your supply chain and ensuring you remain relevant to the needs of your customers.
See the Suuchi GRID in action. Request a demo of our SCM solution now!