Even as the immediate toll on human health What to do today from the spread of coronavirus (SARS-CoV-2), In the current landscape, we see that a complete which causes the COVID-19 disease, mounts, the short-term response means tackling six sets of economic effects of the crisis—and the livelihoods issues that require quick action across the end-to- at stake—are coming into sharp focus. Businesses end supply chain (Exhibit 1). These actions should be must respond on multiple fronts at once: at the same taken in parallel with steps to support the workforce time that they work to protect their workers’ safety, and comply with the latest policy requirements: they must also safeguard their operational viability, now increasingly under strain from a historic supply- 1. 1. Create transparency on multitier supply chains, chain shock. establishing a list of critical components, determining the origin of supply, and identifying Many businesses are able to mobilize rapidly and set alternative sources. GES 2020 up crisis-management mechanisms, ideally in the COVID Supply-chain form of a nerve center. The typical focus is naturally 2. Exhibit 1 of 4 2. Estimate available inventory along the value short term. How can supply-chain leaders also chain—including spare parts and after-sales prepare for the medium and long terms—and build the stock—for use as a bridge to keep production resilience that will see them through the other side? running and enable delivery to customers. Exhibit 1 There are multiple immediate, end-to-end supply-chain actions to consider in response to COVID-19. Supply-chain actions Create transparency on multitier Optimize production and Assess realistic final-customer supply chain distribution capacity demand Determine critical components Assess impact on operations and ƒork wit sales and operations and determine origin of supply available resource capacity mainly planning to get demand signal to Assess interruption risk and identify workforce determine re„uired supply likely tier-2 and onward risk nsure employee safety and clearly Leverage direct-to-consumer Look to alternative sources if communicate wit employees cannels of communication suppliers are in severely affected onduct scenario planning and …se market insigts‚e†ternal regions assess impact on operations based databases to estimate for on available capacity customer’s customers ­ptimi€e limited production according to uman-ealt impact margin and opportunity cost‚ penalty Tier-2 supplier Tier-1 supplier Plant Distribution center ustomer ustomer’s customer Estimate available inventory Identify and secure logistics Manage cash and net oring stimate inventory along te value capacity capital cain including spare parts‚ stimate available logistics capacity ˆun supply-cain stress tests vs ma‡or remanufactured stock Accelerate customs clearance suppliers’ balance seets to …se after-sales stock as bridge to ange mode of transport and understand wen supply issues will keep production running prebook air‚rail capacity given start to stress financial or li„uidity current e†posure issues ollaborate wit all parties to leverage freigt capacity ‡ointly 76 What now? Ten actions to emerge stronger in the next normal September 2020