Responding to the COVID-19 Supply Chain Disruption with Supply Chain Assessment
June 28, 2021
What is Supply Chain Assessment
Supply chain assessment, the process of identifying, assessing, and mitigating the business risks of a company’s supply chain, is a vital business practice at any time. Managing the company’s business flow on sourcing, conversion, procurement, and logistics is necessary to counter the normal disruptions and unpredictability of the world of business.
The Impact of COVID-19 on Global Supply Chain and how to respond with Supply Chain Assessment
Now with the pandemic, those disruptions and unpredictability are greater than ever. COVID-19 has impacted every facet of business, from consumer demand and supply logistics to operations and production.
The impact of coronavirus on global supply chain and how COVID-19 affects the supply chain is clear. Given the high level of interconnectedness between different players in a chain, the global spread of the pandemic, and the fact that the largest economies have also been the hardest hit, COVID-19 supply chain disruption has been especially severe. Whether it is supplies from the US, China or India, the impact on local small business vendors, or even simply the reduced physical on-ground work hours within the firm, reliability is one of the major challenges faced by supply chain due to COVID-19.
Supply Chain Assessment therefore is even more critical now than ever.
READ MORE ON SUPPLY CHAIN ASSESSMENT
At MBG , our team of supply chain assessment experts have tracked the impact of coronavirus on global supply chain from its onset. We have a solid understanding of COVID-19 supply chain disruption - how COVID-19 affects supply chain and the challenges faced by supply chain due to COVID-19. Our supply chain assessment services based on this insight and understanding are designed to mitigate COVID-19 related risks to your supply chain.
Our supply chain assessment framework addresses disruptions in
- Supply : Vulnerability audit, identification of back up suppliers,
- Operation & production: Treasury plan for cash management, insurance re-assessment
- Demand: Re-routing production, product prioritization
- Finance: Assessing and negotiating financing terms, innovations
- IT Security Systems: Controls evaluation, remote working alignment
- Logistics : Inventory and warehousing management review, back up logistics providers
Our offerings include
- Third party risk Identification and assessment
- Business health check reviews on financial and operational costs
- Controls documentation – drafting / review in the context of lockdown or business distress
- Negotiation terms drafting for vendors and customers
- Vendor / customer claims assessment from breach of contractual obligations
- Computation of loss/damages from breach of contract
The scope of work includes
- Understanding the Supply Chain Management (SCM) ecosystem
- Identifying potential supply chain exposure from business distress
- Policy documentation review for operational / financial risks and controls for key processes
- Evaluating alternative models to manage COVID-19 supply chain disruption
- Researching replacement suppliers and production alternatives
- Short term marketing strategies to mitigate demand shocks
- Reviewing clients’ contractual arrangements to identify delays in meeting obligations
- Reviewing force majeure terms of material contracts
- Assessing contractual obligations to identify and avoid unwarranted costs
- Reviewing financial exposure due to breach of contract or business disruption
- Developing alternative communication strategies and channels with customers and suppliers
You can directly reach out to us for your query related to Supply Chain Assessment,Whatsapp: +91 88601-90008, Email: [email protected]