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Supply-chain recovery in coronavirus times—plan for now and the future

Supply-chain recovery in coronavirus times—plan for now and the future

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SUMMARY

In the wake of the coronavirus outbreak companies have to respond on several fronts including the protection of their workers’ safety while safeguarding their operational viability, which is significantly under strain from a historic supply-chain shock.

According to this study, there are several immediate, end-to-end supply chain actions to put in place in response to the Covid-19 crisis. 

Businesses need to create transparency on multi-tier supply chains and determine a list of critical components, establishing the origin of supply, and keeping an eye on alternative sources, the paper indicates. Companies should also estimate available inventory along the value chain for use as a way to keep production running and enable delivery to customers. The evaluation of realistic final-customer demand and respond to the shortage-buying behavior of customers is another key action suggested in this paper.

The optimization of the production and distribution capacity to ensure employee safety and engaging with communication teams to share infection-risk levels and work-from-home options is also paramount. 

In addition, as a response to the coronavirus pandemic businesses must identify and secure logistics capacity, estimating capacity and accelerating, and being flexible on transportation mode, when necessary.

OUTLINE

Actions

Transparency

Evaluate realistic final-customer demand

Optimize production and distribution capacity

Cash management 

Resilience

DETAILS

Overview

Researchfinder Rating
5 out of 5 stars
Title
Supply-chain recovery in coronavirus times—plan for now and the future
Region
Global
Published
March 15, 2020
Publisher
McKinsey & Company
Author(s)
Knut Alicke, Xavier Azcue, Edward Barriball
Price
FREE
Language
ENGLISH

Content

Number of Pages
10
Number of Tables
0
Number of Exhibits
4
Topics
business-and-corona
Tags
consumer demand, corona, coronavirus, Covid-19, crisis management, global, logistics, McKinsey, supply chain, supply chain management
Author(s)
Knut Alicke, Xavier Azcue, Edward Barriball
Methodology
Not available.

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