Checklist supply chains during coronavirus outbreak

During the current coronavirus pandemic, supply chain companies are taking all kinds of necessary action. In order not to overlook crucial issues, it is very important to properly identify all the risks. This checklist from Supply Chain Media is a useful tool that provides ten essential checks for the supply chain.

Philips is currently in the process of scaling up its production of ventilation equipment in the US and supplying it to countries that need it most. Confectionery manufacturer Mars is temporarily shutting down the world’s largest chocolate factory in Veghel to safeguard the health and safety of its employees. Unilever is donating soap and other cleaning products, plus it is paying the invoices of its small and medium-sized strategic suppliers as quickly as possible as well as financing its small retail customers. Meanwhile, some companies are moving into survival mode. One example is De Bijenkorf, a Dutch chain of department stores, which is extending its payment period for suppliers to 150 days (which is much longer than the statutory maximum of 60 days).

In order to decide on the right action for your supply chain and to avoid overlooking crucial issues, it is essential to take a quick and structured approach to identifying all the risks – both at strategic, tactical and operational level, and looking upstream (towards suppliers), internally and downstream (towards customers and consumers). Supply Chain Media has created this clear checklist to help you determine which action you need to take to keep the supply chain running. The checks are derived from the End-to-End Supply Chain Visibility Assessment developed in collaboration with several leading multinationals.

These are the ten necessary checks for your supply chain during the coronavirus crisis:

  1. Check whether all your employees are able to work safely and are properly informed.
  2. Check the financial viability of your strategic suppliers.
  3. Check the financial viability of your own company and business units.
  4. Check the financial viability of your strategic customers.
  5. Check how much capacity your strategic suppliers have available.
  6. Develop different scenarios to keep supply and demand aligned.
  7. Check the demand predictability of your strategic customers.
  8. Analyse the operational risks of the incoming flow of raw materials, parts and components.
  9. Identify the potential risks in your own operations (production, warehouse and transport).
  10. Analyse the operational risks of the outgoing goods flow (deliveries).

Supply Chain Media also conducted a survey among supply chain decision-makers in Europe to study the extent to which they are carrying out these checks and what action they are taking as a result. Read the first findings from this research here.