Prioritising Supply Chain Management (SCM) In The face Of COVID-19
With the global dissemination of the coronavirus disease (COVID-19) showing no signs of slowing, firms need to be able to evaluate the impact of the virus on their supply chains. As countries such as China and Italy are going into lock down, both the production and transportation of goods are being affected. So, what does this mean for a firm’s productivity and, in effect, profitability?
With the current business landscape in question, as share prices take dramatic tumbles, firms need to ensure they are prepared for how COVID-19 will affect their workers, supply chains and overall workflows. As such, supply chain transparency solutions are increasingly important, as firms need assistance navigating and managing the complex and ever-changing landscape.
Supply chain transparency software can provide better visibility of the impact of coronavirus as it unfolds in real time, helping firms better prepare and manage their supply chains. This software can assist organisations in considering and evaluating the impact of various environment, health, safety, sustainability and social metrics—from the level of an individual supplier or facility throughout the entire supply chain (see Verdantix Smart Innovators: Supply Chain Transparency Data Solutions). These solutions can be used to assess the risk of importing goods from high-risk locations as well as assessing what would happen if an element of the supply chain was cut-off due to quarantine.
Numerous vendors in the market are offering solutions to assist corporate leaders in comprehending their supply chains in the current climate. For example, UL offers a visual map of the supply chain to help their clients understand the risk at various levels of their supply chains. The UL solution also includes a risk rating for the country in which the supplier is based and identifies the importance of various relationships within the chain.
Other vendors such as SAP, Oracle, JDA, and Infor Global Solutions offer supply chain management solutions that provide increased visibility into the supplier landscape (see Verdantix Supply Chain Stewardship: Market Size and Forecast 2017-2022 (Global)). Although all vendors offer slightly different functionality with their software, the core principle remains consistent: creating better insight into a firm’s supply chain to help clients manage potential risks.
Supply chain management software offers multiple functionalities, from material information to EHS compliance and product footprints. However, with the current challenges imposed by COVID-19, it is important for firms to recognise the value of investing in these solutions for supply screening and risk evaluation in order to mitigate the impact of the disease on their bottom lines.