remanufactured stock, is available. Additionally, — finished goods held in warehouses and blocked after-sales stock should be used as a bridge to keep inventory held for sales, quality control, production running (Exhibit 2). and testing This exercise should be completed during the — spare-parts inventory that could be repurposed supply-chain-transparency exercise previously for new-product production, bearing in mind the GES 2020 trade-off of reducing existing customer support described. Estimating all inventory along the value Supply-chain COVID versus maintaining new-product sales chain aids capacity planning during a ramp-up Exhibit 2 of 4 period. Specific categories to consider include the following: — parts with lower-grade ratings or quality issues, which should be assessed to determine whether Exhibit 2 Built-in inventory in the supply chain will delay the full impact of halted production. Expected stockout for companies in EU/US with suppliers ƒo„range †ighrange in China, by industry, illustrative estimate estimate utomotive …harmaceuticals Consumer Retail (mass Retail (fashion †igh tech emiconductors ar 22 pr ay une uly ug ept ­ct €ov ‚ec an 221 Inventory, days of stock (including supply in transit utomotive …harmaceuticals Consumer Retail (mass Retail (fashion †igh tech emiconductors 2ndtier 3040 3570 2030 N/A N/A 4060 N/A supplier (China) (China) (China) (China) 1sttier 717 120140 6090 6090 1535 5570 70110 supplier (EU/US) (EU/US) (China) (China) (China) (China) (China) ssembly‡ 212 55100 1017 1017 1529 1945 6090 packaging (EU/US) (EU/US) (EU/US) (EU/US) (EU/US) (China) (Philippines) 1 R‚Cs N/A 8090 14 1517 1523 N/A N/A (EU/US) (EU/US) (EU/US) (EU/US) arket 030 N/A N/A 7 2128 2440 2030 buffer (EU/US) (EU/US) (EU/US) (EU/US) Toal 4070 230320 6090 70100 70110 40100 130200 ineno as2 1 Regional distribution centers. 2 Figures for total inventory buffer and expected stockout are calculated assuming production stop at latest link based in China. 78 What now? Ten actions to emerge stronger in the next normal September 2020

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