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Supply Chain Risk Management in a time of crisis

8 Questions you should be asking

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1) Have you conducted an evaluation of your business continuity plans?

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2) Have you performed a risk assessment across all supply chain tiers?

3) Have you performed an operational risk assessment and considered the impact of disruptions on critical business functions?

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4) Do you have visibility and access into critical supply chain data to properly assess the potential damage and create immediate plans?

5) Have you conducted scenario planning exercises to understand the operational implications, both financial and non-financial, of various scenarios?

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6) Have you set up a temporary inventory recovery and evaluation process?

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7) Have you evaluated strategies for alternative sourcing, including the impact of tariffs to cost?

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8) Have you activated product redesign / material certification resources?

How mature is your risk management approach ?

supply chain risk covid-19

How should you support your business and manage ongoing crisis?

Crisis response :

Addressing active risks (e.g. COVID-19) leveraging a rapid deployment approach that minimses damage.

Example: your supply of intermediate components from a Chinese supplier was just shut down. How do you do damage control ?

Supply chain risk management unit :

Establishing a sustainable unit within your organisation to proactively manage financial and operational risks.

Example: after facing supplier disruptions because of flooding and typhoons in South Asia you have decided to develop a supply chain risk management function. Where do you begin ?

Crisis mitigation :

Anticipating and mitigating future risk (e.g. supplier bankruptcy) before it is realised in an effort to improve supply chain resilience.

Example: you understand that a number of your key tier 2 suppliers are facing liquidity issues and may face bankruptcy. How do you mitigate this risk?

Rapid localisation of critical items :

Identifying critical supply chains and localising them to ensure supply.

Example: you are heavily dependent on imports for a number of products and essential items. How can you develop a localisation plan to minimise this dependency ?

Contact us

Dr. Bashar El-Jawhari

Partner and Leader of Industry 4.0, Procurement and Supply Chain, PwC Middle East

Nicolas Laborie

Director, Consumer and Industrial Products and Services, PwC Middle East

Tel: +971 54 793 3768

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