The Impact of Coronavirus on Manufacturing Supply Chains
The coronavirus (COVID-19) pandemic is having a resounding effect around the globe, and the manufacturing industry is no exception. Disruption from the virus has impacted supply chains and operations in many sectors of manufacturing. In a recent article for BDO United States, authors Jeff Pratt and Sean Murphy offer a helpful summary of the specific impacts of the COVID-19 outbreak on manufacturers.
The long list of specific effects offers a look at both items to expect as the crisis continues and action items for manufacturers seeking to lessen the impact, or at least manage it. If they haven’t already experienced it, manufacturers should be at the ready for:
- Supply shortage and rising prices
- Delays in fulfillment
- Rising transportation prices
- Shockwaves resulting from the global economic impact
In order to deal with these issues, the authors suggest some action items for manufacturers to consider, including:
- Re-build or strengthen the reputation of their organization
- Diversify operations geographically
- Increase visibility across the supply chain
- Adjust sales and operations to meet new demand
- Carry out regular business continuity risk assessments
- Get familiar with the details of their insurance coverage
- Evaluate and make long-term changes to help make future crisis situations less dire
For more details, click here to read the article in full at BDO United States.