on October 5, 2020
COVID-19 and the Supply Strain
Supply chain disruption can come in many forms – natural disasters, labor strikes, terrorist attacks, material shortages, and manufacturing delays to name a few. In 2020, it was a global pandemic that brought the global supply chain to a screeching halt, with nearly 94% of Fortune 1000 companies reporting their supply chains have been negatively affected.
While it’s nearly impossible to predict the next natural disaster or global health crisis, it’s crucial for companies to be forward-thinking and invest in digital supply chain technologies that can highlight vulnerabilities in their chain should such an event occur, and empower smart, data-backed decisions to mitigate disruption as much as possible.
As an award winning intelligent supply chain technology that has captured thousands of data points globally across hundreds of factories, Anvyl has a unique view of the COVID-19 crisis and its impact on global supply chains nationwide. In our latest white paper, we break down the trends we’re seeing, share our five-step plan for handling supply disruptions, and provide best practices for contingency planning and supplier diversification to make your supply chain more resilient to future unforeseen circumstances.
Combating Increased Lead Times that Cause Delays
An April 8 survey of U.S. finance leaders by PwC showed that only one in five (21%) listed “supply chain disruptions” as a top three concerns related to the COVID-19 outbreak. Our data shows that by then, lead times for Chinese suppliers had already increased by about 20 days since the end of 2019. Outside China, production delays didn’t return to normal levels until the end of July, and shipping delays lagged production delays by more than a month in some instances.
Handling Disruption through Contingency Planning
Planning for something you can’t see coming sounds difficult, but our best practices for contingency planning will ensure your supply chain remains resilient and agile should global disruption occur. Understanding what moves the needle for your company and what you must do to protect the related different stages of your supply chain can make or break your viability to move past hurdles.
But having a plan is only good if it works – test it and update it frequently! The contingencies you put into place five years ago are already likely outdated today. Anvyl can help you to leverage your data to inform your decisions, anticipate trends, and ask proactive questions of your suppliers to ensure everyone is working together seamlessly.
How do we know it works? Anvyl has helped companies just like yours to navigate the pandemic with proper contingency planning. A leading CPG company was able to shift production to a non-impacted partner within a week, supporting demand until its Chinese factory came back online.Want to learn how Anvyl helps organizations keep their supply chain resilient during global disruption? Download our latest white paper for more information.