GES 2020 Supply-chain COVID Exhibit 3 of 4 Exhibit 3 Estimating a medtech company’s degree of Cluster maps reveal alternative sourcing connectiveness helped it expand its supplier options for all the materials affected. base by 600 percent, while an industrial-tools maker identified request-for-qualifications-ready Cluster map, durable speaker suppliers, suppliers for highly complex parts that it had been illustrative (n = 87 suppliers) previously unable to source. Company Common capabilities Finally, when coming out of the crisis, companies and governments should take a complete look at their supply-chain vulnerabilities and the shocks that could expose them much as the coronavirus has. Exhibit 4 describes the major sources of vulnerability. The detailed responses can reveal major opportunities—for example, using scenario analyses to review the structural resilience of critical logistics nodes, routes, and transportation Cluster characteristics, % modes can reveal weakness even when individual components, such as important airports or rail Automotive Multimedia speaker Marine hubs, may appear resilient. speakers systems audio GES 2020 27 25 25 14 9 Supply-chain COVID Mobile-phone Exhibit 4 of 3 Professional audio equipment speakers Exhibit 4 Supply-chain vulnerability occurs across five dimensions. Drivers of potential vulnerability Typical focus Full-picture focus Planning and Transportation Financial Product Organizational supplier network and logistics resiliency complexity maturity • How predictable is • How resilient is the • How much financial • re components • How proactive vs demand planning? physical-flow and flexibility does the in the products reactive is the logistics network? company have or substitutable? organiation in • How complex or increased supply- identiying and concentrated is the chain cost or • How flexible is mitigating supply- supply network, sustained the design i chain disruptions? and how resilient is disruption? components are it to disruption? no longer available? • How exposed is the • How vulnerable network to tariffs is the product to and other trade regulatory disruptions? changes? Supply-chain recovery in coronavirus times—plan for now and the future 81

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