Organisations of all sizes around the globe are experiencing a wide variety of unexpected and unplanned supply chain disruptions during the COVID-19 pandemic. In many cases, companies are exposed to problems and risks that might have already existed but have come to the fore as a result of the crisis and the supply chain only as strong as the weakest link.
Michael Larner, Principal Analyst at ABI Research, said: “To mitigate supply chain risks, manufacturers should not source components from a single supplier but also, as COVID-19 has highlighted, shouldn’t source from suppliers in a single location.”
Unprecedented demand is putting pharmaceutical and healthcare companies under strain, while retailers have felt the pressure of panic-buying by consumers facing long periods of lock-down. At the same time, many companies face reduced cash flow.
“At times like these, revenues fall but expenses don’t. In addition to aggressively managing the continuity of supply, now is the time for firms facing financial difficulties, in particular in sectors such as hospitality, entertainment, airlines and non-essential retail, to optimize all indirect material and variable spend,” says Jim Bureau, CEO of JAGGAER.
JAGGAER/Tejari is uniquely placed to support existing customers to optimise supply chain efficiency and implement new approaches.
“We are working closely with customers to help them through the current difficulties with dynamic replanning and reprioritisation. With JAGGAER spend analytics, companies are better able to identify areas where they can retain more cash in the business.
“It is also vital to have supply chain visibility and risk mitigation strategies in place, and here too we are putting JAGGAER/Tejari’s rich experience at our customers’ disposal. Intelligent and structured spend analysis, sourcing and eProcurement strategies, based on digital solutions, can proactively provide insight to activate and deploy emergency plans to face a range of difficult circumstances,” says Bureau.
As we transition through this crisis many companies will alter how they manage their supply chains today. Bureau added, “It is critically important that risk and resilience is built into supply chain strategies, especially in direct procurement. Most companies have contingency and business continuity plans for disruptions of various sorts but coronavirus, which is putting whole regions of the world out of action, at least temporarily, is a whole new ball game.”
JAGGAER/Tejari’s business model means that it is in a very strong position to get through the COVID-19 crisis.
“We regard it as a duty to leverage these strengths to help customer organizations that are more vulnerable. And we have a broader responsibility to do our bit to help the global economy emerge from the crisis stronger and more resilient than when we entered it,” concluded Bureau.