Impact of COVID -19 on Manufacturing Supply Chain: SpendEdge Identifies 5 Ways to Streamline Supply Chain Management at a Time when Efficiency Could Be the Key to Success
With factories and businesses coming to a standstill in government-backed closures to slow the virus's spread is testing the manufacturing supply chain.
SpendEdge, a leading provider of procurement market intelligence solutions, has announced the completion of their latest article on the ways to streamline supply chain management at a time when efficiency could be the key to success.
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Manufacturers across the world are dealing with disruptions in the supply chain due to the COVID-19 outbreak. With factories and businesses coming to a standstill in government-backed closures to slow the virus's spread is testing the manufacturing supply chain. Companies need to find out who supplies their suppliers to have a complete sense of how to respond and continue the business. They need to be making plans to adjust their purchasing and product lines while improving their supply chain management. Rather than relying on insurances to bail out, companies must assess risks and devise strategies to reduce the impact of COVID-19.
SpendEdge helps companies improve supply chain management by consolidating metrics across various sectors of the supply chain. It identifies the structure of the supply chain, suppliers, and all risks associated with them to help companies improve the manufacturing supply chain amid such a crisis.
Want to address the impact of COVID-19 on the manufacturing supply chain? Request a free proposal to know more about our solutions that can help your procurement team address challenges posed by the pandemic.
Ways to Streamline Supply Chain Management amid COVID-19 Outbreak
Obtain insights into supply and demand risk
The manufacturing supply side has become a major source of concern for businesses due to the COVID-19 outbreak. The inability to procure and ship supplies from vendors in China is giving rise to major inventory concerns. Companies must obtain specific insights to predict demand risk and measure supply risks through close communication with their vendors.
Map the supply chain
Mapping the supply chain gives executives visibility up several tiers of suppliers, as well as the logistics between those suppliers. It requires hyperlocal information and data- and information-sharing between partners. Companies should work to map the supply chain to identify the exact source of disruption and assess how to respond. To gain vital insights to map your supply chain, get in touch with our experts now!
Engage in scenario-planning
Scenario-planning is not just a strategy to deal with the impacts of the COVID-19 outbreak, but a best practice for supply chains at all times. Supply chains relying heavily on one source could benefit from buying additional inventory, despite the risk of overstocking. The more the number of what-if scenarios, the easier it is for companies during uncertainty.
Dynamic risk management
The current pandemic emphasizes the need to embrace dynamic risk management, a more exquisite approach to risk. Companies must focus on obtaining results in the short-term, overlooking the long-term viability at risk because no initiatives were taken to strengthen alternate supply chains.
Diversify supply chains
Companies must have multiple sources for products and components. No company should rely on a single source for vital components. The current crisis shows how abrupt events can take over and impact the manufacturing supply chain. This may also mean paying suppliers more for products than the prices fixed with long term suppliers. But this will provide options for companies.
To analyze the impact of COVID-19 on manufacturing supply chain and steps to mitigate them, reach out to our analysts now!
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About SpendEdge:
SpendEdge shares your passion for driving sourcing and procurement excellence. We are the preferred procurement market intelligence partner for 120+ Fortune 500 firms and other leading companies across numerous industries. Our strength lies in delivering robust, real-time procurement market intelligence reports and solutions.
Want to gain detailed insights? https://www.spendedge.com/get-more-info
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