Many organisations saw their supply chain disrupted because of the COVID-19 pandemic. Your suppliers were probably just as affected by the pandemic and its impact as you were. With this in mind, you might want to rethink the entire chain to ensure that your organisation is agile and can protect itself against the consequences of any further COVID-19 outbreaks. It is important in this context that you have a thorough understanding of your value chain and the associated risks. You also need to make sure that your organisation has the capacity to deal with change and that all your processes yield return. The crisis may also have a major impact on your demand, which means that your revenue will be affected. It is important that you use the right tone in your communications with your employees, your customers and prospects, and other stakeholders. BDO can help you resolve issues relating to your operation and your supply chain.
Three phases: REACT, RESILIENCE and REALISE
The situation is different for every organisation. We have identified three phases that you will have to navigate in the COVID-19 crisis. This three-phase model will help you gain a clear understanding of your potential challenges and business priorities.
REACT: control of the chain
The COVID-19 pandemic caused borders to be closed and affected imports, exports and market access. Thorough knowledge of your chain, its associated vulnerabilities and risks, and potential alternatives is crucial for the continuity of your business. But how do you gain control of the chain and the related risks? Perhaps you see opportunities, but you do not have the capacity or the tools to pursue them. BDO can help you increase your control and achieve the best possible balance between risk and return.
RESILIENCE: adapting to change
In times of low supply and/or demand, there may still be ways of continuing your business. A retailer could ask its staff to help with a minor renovation, a textile factory could start to produce face masks and a beverage company could use its production line to manufacture hand sanitiser gel. In just a short time, digitalisation gained traction, even in relatively traditional sectors, and this has brought on all manner of challenges and risks. There are many more examples of how you could adapt your processes to the changing situation. But how do you improve your return and make the most of the available potential under drastically different circumstances? BDO can help.
REALISE: working towards a future-proof organisation
In this phase, you will start building your ‘organisation of the future’. Does your organisation have the innovative drive to see change and act upon it? Adapting to continuous change calls for professional change management and a robust supply chain strategy. Perhaps you are considering increasing your control through chain integration. That too lies in our scope of expertise. We would be happy to discuss our chain integration solutions with you.
More information
Please feel free to contact one of our specialists if you have any questions about how to improve your operation and your control of the supply chain. They can help you perform an in-depth analysis.