COVID 19 – A Call for

Resilient Supply Chain

Systems

Presented by NetSet Software Solutions ll

 The health crisis continues to leave consequences in its wake. On the health
level, of course, but also economically. The global economic scenario is being
affected by the effects of Covid-19, which are increasingly evident in different
sectors of activity.
An unprecedented global and critical landscape that greatly hinders current
trade relations across political, cultural, and social borders. The truth is that the
implications of this new scenario for small and medium-sized companies, which
make up an important part of the supplier portfolio of large companies, are
notable.

Presented by NetSet Software Solutions ll

 The Supply-Demand Shocks

The spread of the coronavirus pandemic (COVID-19) is causing major

disruptions in the way people access goods and services,Immediate outages
were similar and widespread across the globe: toilet paper, cleaning products,
alcohol gel, face masks, and thermometers sold out in supermarkets and
pharmacies. Likewise, travel restrictions along with the implementation of long
periods of quarantine and social distancing that restrict labor mobility have also
slowed and/or disrupted supply chains.
For example, quarantines of up to 30 days in force for aircraft and ship crews in
certain countries have resulted in great operational and financial stress for air
transport companies and shipping companies.

Presented by NetSet Software Solutions ll

 # The Supply

As the virus was taking a toll on China in early 2020, many were busy
calculating the repercussions it will have on the supply chain channels as China
is one of the big markets and an active node of trade.
Gradually, there occurred the scenario of goods disruptions where companies
sorted out their production as per their feasibility to meet the demands.

Presented by NetSet Software Solutions ll

 # The Demand
To control the situation, countries proposed and implemented lockdowns which
led supply chains to pull back many of their services which further brought them
to witness demand shocks.
Toilet papers set the biggest example in front of us where the end consumption
is stable as of now. Fortunately, food supply chains reacted exceptionally to the
massive spike in demand, reassuring people in this depressing time.

Presented by NetSet Software Solutions ll

 Developing a Resilient Supply Chain Network

Here I have put down some workable ways and steps for manufacturers to help
them equalize their supply chain systems and networks to cope up with the
unprecedented changes transitioned worldwide.
NetSet Software Solutions is also learning from the effective techniques
provided below and is making the best efforts to continue its services without
any disruptions amid the corona crisis.

Presented by NetSet Software Solutions ll

1 Conduct Risk Assessments & Nail the Pivots

Responsiveness, proactiveness, speed, and decision making are the key factors
to spin the wheel of success during the critical time of the novel coronavirus
spread.
Identify - Ever-changing supply-demand variants to act wisely to eliminate the
loopholes in supply, transportation, production, and warehousing.
Define - Goals and action plan feasible as per the temporary crisis. Reform
and create result-oriented resilient strategies to maintain the supply chain
networks and ecosystems to balance the cycle of supply and demand,
deriving appropriate sales and revenue.

Presented by NetSet Software Solutions ll

 2 Prepare for Employee Absenteeism

Absenteeism of employees is a real-time situation that manufacturers must be

prepared for, looking at the tough time of crisis. The restrictions imposed on
travel lowered the availability of local laborers as well as migrant workers to
return to work.
Think practically: Loss of productivity caused due to the fall in the number of
working employees (sick leaves, impacted by the virus) can be significantly less
expensive than a prolonged downtime from closing an office site, the entire
plant, or distribution center.

Presented by NetSet Software Solutions ll

 3 Pay Heed to Workforce/Labor planning

Amid the time of the outbreak, restarting operations will present unique
challenges as workers gradually rejoin to work.
 Nevertheless, ‘back to normal’ situations won’t be achieved easily and would
take longer than usual. With ongoing restrictions and imposed rules on
commutation, it will be hard to ramp up to the full capacity and potential and
requires close heed to be paid to labor planning and product quality with the
scarcity of both material and required workforce.

Presented by NetSet Software Solutions ll

 4 Set Prime Focus on Supplier Risks

Here comes the need for you to separate your direct suppliers and understand
their capabilities to fill the supply gap and meet essential requirements,
eliminating encountered risks.
Remember, suppliers will treat you from an allocation perspective regarding
shortages, outages, and inventory management where you would not only be the
last option for them, therefore, you must hunt for alternative ways and plan
accordingly to minimize the impact on your firm.

Presented by NetSet Software Solutions ll

 5 Illuminate the extended Supply Network

To keep the Tier 1 running, it becomes significant to pay close attention to the
Tier 2 supplier status and beyond, that further impacts Tier 1.
with suppliers for alternative plans, alter rules and methods of work wherever
needed to keep your business plants running at the maximum efficacies.
Establishments with complex supply chain networks, systems, and hierarchies
need to extend and scale their approaches and techniques to alleviate supply-
side risks, embracing digital modes to enhance the network for gaining a clear
view of critical components of the supplier network.

Prepsented by NetSet Software Solutions ll

 6 Apply Digital and Automated Approaches

Endorse smart digital methods in communication and other manufacturing

operations to mitigate reliance on labor-intensive roles and workflows. 
Businesses, today, must favor digital technology to aid standardization of
routine work and jobs, done remotely or physically, as they can reduce the
dependency level of relying on individuals to run elementary operations.

Artificial Intelligence, IoT, big data capabilities can bolster your manufacturing
systems and foster a digital ecosystem of connected devices, rendering
relevant and useful data in real-time, thus enhancing decision making.

Presented by NetSet Software Solutions ll

7 Identify and Proceed with Alternate Sources
of Supply
Amid the troublesome situations, one must look for secondary ways to enhance
supply sources and secure capacities and inventory and grab opportunities for
resource pools to gather raw materials.
Look out for non-impacted areas for alternative sourcing markets with supply
chain and manufacturing expertise, exploring the diversifying geographical
location beyond the boundaries of China. (Most likely markets include, Brazil,
Mexico, Chile, etc.)

Presented by NetSet Software Solutions ll

 8 Reshape Inventory Policies and Parameters

The demand and supply variability has inclined differently, where the rules,
policies, and practices followed earlier would not deliver productive results.  
There arises the need to consider and mark the ways to refine inventory
strategies to reduce the adverse effects on business due to supply shortages
and risks, equalizing the basic factors like cash flow, supply base risk, perish
ability, etc. on an immediate basis. 
Set safety stock parameters to buffer the demands and supply variabilities with
delineate planning and precision.

Presented by NetSet Software Solutions ll

 9 Enhance Inbound Material Visibility

In this step, you need to acquire insights about delivery performance from the
supplier’s end. Expect delays and declines in the delivery status and type (on-
time and in-full respectively).
If you lack digital connectivity with suppliers over the inbound flow of products
and materials, you must get access to data and management tools to enhance
business visibility and feasibility of trading amid the corona outbreak, further
empowering decision-making skills.

Presented by NetSet Software Solutions ll

 10 Pay Attention to Production scheduling

Create an agile and adaptive environment and prioritize the products to

accelerate sales in the event of raw material shortages. Refine your production
schedules as per the availability of resources and manpower to reduce the
expected disruptions in the supply-demand concept of trade. 
There might be many small and medium enterprises that might not possess the
necessary tools for calibrating re-planning and scheduling, and for them, Supply
Chain War Room becomes the critical need as a short-term solution in the
present time.

Presented by NetSet Software Solutions ll

 Final Say
The spread of the deadly virus is impacting communities, supply chains,
ecosystems on a whole which calls for global scenario planning.

Supply chains today face a disruption risk not seen since World War II.

The experience of affected countries in the first wave of COVID-19 shows that
avoiding disruption in supply chains is key to ensuring food supplies to a
quarantined population.
At the same time, the operation of these chains contributes to reducing the
serious impact on the economy, keeping some of its sectors active.

Presented by NetSet Software Solutions ll