The pandemic unfolds considerable global disruption in our Supply Chains (SCs,) reason why it is essential to ponder and performance in a different way to renovate and revolutionise our SC strategy. Businesses worldwide can go along with the new outlook on how leaders are making progress to overcome COVID-19 and construct a vigorous-more just-flourishing future.
The deadly disease has left long-lasting breakups in our society and economies, creating a social emergency. The World Economic Forum (WEF) presented a Great Reset proposal - the responsibility to build, hand-in-hand and without delay, the bases of our economic and social re-structure for a just-sustainable-resilient future.
“As countries begin to emerge from the worst effects of the pandemic, a picture of those that have been successful in mitigating the labour market and economic impact is appearing. In broad terms, countries that responded more quickly with economic support and helped employees stay in the work process as much as possible are showing better prospects.” (Bettina Schaller, the Head of Group Public Affairs at the Adecco Group.)
Critical reviews to Supply Chain Management risks in the present crisis
· Studies comparing government and business’ responses to the crisis in different countries verifying which policies and decisions lead towards the best economic outcomes; using macro-economic indicators and policy responses, which include workers and businesses supporting measures. They issued a set of proposals to soften its impacts to help the economic return to the new normal.
· Keeping up economic activity during the crisis is crucial, as the lack of it multiplies an undesirable financial outcome.
· It is vital to support employment, workforce and business in general, and to focus on getting financial funding to companies and persons most in need.
· This study found that Switzerland, Sweden and Germany did best across the selected macro-economic indicators. The analysis presents a practical in-depth contrast for businesses and governments, including policymakers worldwide, to learn from and act accordingly.
· The direct response to address COVID-19 effects is adapted to the particular and most urgent needs of communities and countries, recognising their too different socio-economic circumstances.
· It is crucial to engage in climate change that demands creativity from all stakeholders.
· Global Logistics companies are essential to reach people in need and to carry out healthy-efficient SCs to deliver life-saving vaccines to isolated communities around the world; a great effort to guarantee medicine to vulnerable populations (the UPS Foundation and its partner work at the world’s poorest countries devoting resources to vaccines.)
· Several companies are looking to boost employee’s benefits from wellbeing programmes to mental health services; unfortunately, this research also found that some bonus was reduced, including sick and annual leave, healthcare and retirement benefits, caused by the current-impacted economy.
· The research also examined the impact of COVID-19 on employee wellbeing. The lack of continuity and uncertainty on jobs are altering an individual’s emotional wellbeing and their financial capabilities, with frail emotional intelligence and resilience, the most critical skills to recovering. Therefore, businesses leaders need to re-design the guidelines around the social experience of work.
How to succeed in the middle of uncertainty
PwC’s specialists work together to build a digital assessment to help you comprehend the latent disruptions to your business and determine your cleverness to respond. Digital tools help out companies to understand their real position to react in the all zones of crisis, like managing and reaction, financing and cash flow, operations and SCs, labour force; tax and trade; and strategy and brand. They as well published a tracking tool to outlining tax, legal and economic measures carried out in countries worldwide in response to COVID-19, plus conducting a regular CFO Pulse Survey to detect on what finance front-runners they are currently concentrating.
In several countries, PWC is helping to set up and administer government systems to reinforce companies and people constrained by the pandemic, such as charities, donation of medical supplies and equipment to hospitals. The firm has also encouraged its teams to volunteer in local healthcare in case they count on medical training. Others are participating in community support, providing food to strategic workers or nurturing the homeless and more.
To fully understand emerging risks generated by the impact of the pandemic, the World Economic Forum, in collaboration with several partners, developed a Preliminary Mapping and its Implications study to check up risks. They divided hazards into three categories: most concerning for the world, most likely for the world and most troublesome for businesses, as follows:
· Participants found a lengthy-global recession as the topmost distress for business.
· One-half of participants identified as crucial worries: bankruptcies, collapsing of industry consolidation, failure of industries to recover, and disruption of SC.
· Companies are also troubled about the geopolitical disruptions to business.
· The commuting of persons and supplies officially determined by severe restrictions.
· A currently increases in cyberattacks and data fraud.
· Concerns are due to collapsing of IT structures and networks.
· There is a need to enhance the relationship between the public and private sectors to solve the most urgent business and economic matters.
· COVID-19 pandemic represents numerous challenges which will become increasingly more critical as the world rebuilds and adapts to a ‘new normal’.
Re-evaluate current processes and performance
Pro-active SC leaders challenge their traditional operations to deal with disruption, moving risky to revive social, health, economic, geopolitical and environmental order, by leveraging strategic SC measures towards short/long-term recovery, and to building up a resilient-agile system.
Data quality is a substantial concern for SC teams around their planning process, which provides staff with the must-have insights, framework and strategies to build up agility and strength into management, procedures, and decision making. So, it is advisable to ask you and your team these following questions to establish where your company stands on:
· What to do to improve the planning system and whom to involve?
· Is your SC team capable of responding and recovering from a crisis of any kind?
· Do creative decision-making and discussion take on all of your time?
· How much time do teams spend on data?
· How frequently do you outline possible scenarios previous to/all through planning meetings?
· How to depict risk data, disruption and unique circumstances openly?
Further recommendations: invest in functional competencies that provide agility and viable advantages. Find out how to involve business players to deliberate about opportunities to change investments during a recovery. Set up a pro-active SC business that contributes to outstanding customer experiences, and persuades leaders of the risk talent substitution represents in times of crises.
An inefficient and poorly functioning SC can negatively impact every aspect of an organisation. Are you challenging your traditional operations?