COVID-19 or #coronavirus outbreak is expected to increase the severity of supply chain #disruptions after the first quarter of this year. Know how you can tackle this.
SpendEdge, a leading provider of procurement market intelligence solutions, has announced the completion of their latest article on the strategies to minimize the impact of coronavirus on supply chains.
Supply chain disruptions are one of the major impacts of the coronavirus outbreak. Quarantined workers and the shortage of components are affecting manufacturers across the globe. The situation might worsen after the first quarter of this year. Companies having global supply chains could expect a delay in the supply of raw materials and products. Also, shipping and delivery could become a major concern for some industries.
"If the shutting down of global supply chains continues, there could be a scarcity of other day-to-day essentials as suppliers face their own challenges," says a procurement expert from SpendEdge.
How Can Companies Prepare for the Future?
Advanced manufacturing units
Advanced manufacturing and technologies such as 3D printing and artificial intelligence will not just shorten supply chains but also reduce the impact of unprecedented risks. Rather than building massive factories and making one city a manufacturing hub, companies need to create smaller manufacturing hubs in different cities.
Want to know advanced manufacturing unites can help companies reduce the impact of such pandemics? Request free platform access to leverage our smart procurement solutions now and 1000+ procurement reports!
Localized supply chains
Creating a small and agile supply chain is the need of the hour for companies. In this cut-throat competition, companies cannot simply afford to have a 30-day shipping time from China to the United States. They require supply chains that are agile to address different risks and innovation. Having advanced manufacturing engineering offshore really makes it difficult for companies to be innovative onshore. To understand how leading companies are building agile supply chains, get in touch with our experts now!
Strengthening the in-house logistics network is extremely crucial for companies to manage the crisis response. Deploying human and autonomous capacity can help companies to obtain the delivery of crucial supplies and resume their operations. Waiving fees for some suppliers could also help companies minimize the impact of such risks.
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