Post COVID‐19 Supply Chain Agility Imran Yousaf, MCIPS Pakistan Branch
Pandemic Impact on Supply Chain Depending on the spread & isolation strategies , the impact on global supply chain will vary and may change substantially – Your supply chain crisis response need to think through all of them. Broad range of local and Global Large scale disruptions and lock supply chain disturbances possible, down on all levels triggered by capacity constraints on people and logistics side.
Over all Impact of COVID‐19 •Global GDP, Recession Likelihood •Alarming impact on Developing countries with poor economic health •Significant decrease in International trade especially from China Macro • Widespread human impact (including work force), with unknown duration and unknown impact. Risks are invisible / unknown. • Rapid decrease in spending Stockpiling/panic buying, particularly essential consumer goods • Increase online shopping due to social distancing, self‐quarantining Demand • Increase demand for personal protection, hygiene and medical supplies & Supply • Shortage and long lead times of China‐sourced supplies / Force majeure declaration by Chinese suppliers • Ocean & air cargo constraints / operation Closure – Logistics issue
Impact on Telecom Industry • Increase in Network Usage • increase capital spending • Changes for Customers Air time and data on reduced minutes to combat COVID‐19 • Free /reduced cost tools to help people to work from home Source : Deloitte
Supply Chain‐ Agile Responses Cost base Rest Shifting from bottom‐line growth to cash Health and well being optimization Ensure safety and well being of Liquidity and cash management are employees becoming top priorities. Plan where and when employees will Reliable supply Is the new Price ? work in order to maintain operations Supply risk is the new financial risk ? Re‐think Strategies Scenario Planning Sustainable Supplier relationship Update inventory policy and planning Assess Supplier Risk parameters focus on supply chain assessment and risk Alternate Supply base and logistics management arrangement Conduct a value chain assessment of Creating transparency in Network other risk factors too . Focus on supply continuity
Supply Chain‐ Agile Responses (continued) Go‐ Digital drive improved visibility and control Communication & Engagement Enhance communication and across the supply chain transparency with Suppliers & customers Constant comms with Customers with growing situation of COVID‐19 and Team Capability Development business. Right people with right skills to face such challenges
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