As the COVID-19 health crisis impacts global supply chains, the Bay Area Manufacturers Association as part of the FloridaMakes Network is stressing the importance of having a plan in place prior to disruptions to your supply chain. The following checklist can help your company react to and prepare for disruptions.
IF YOUR SUPPLY CHAIN IS ALREADY IMPACTED:
- Contact us at firstname.lastname@example.org for advice on available resources.
- Review potential short-term and long-term impacts to make business decisions. Develop a plan for immediately handling impacts. Existing sales orders, forecasted demand, critical customers, work in process, inventory of raw materials, critical suppliers and their locations, and incoming materials on order can all affect a manufacturer’s ability to make sales and impact production schedule and staffing.
- Communicate with current and alternate suppliers. They may be getting similar requests from other companies and have capacity limits and/or higher prices. Manufacturing suppliers may be impacted and distributors could see spikes in demand based on actual or perceived concerns.
- Developstandard communications statements for your customers – both a response statement if a customer will likely be affected (your orders may be delayed) and a proactive, standby statement to reassure customers and quell concerns.
- Contact FloridaMakes to find alternate suppliers within Florida or nationally through the NIST Manufacturing Extension Partnership National Network™
IF YOU SUSPECT THERE MAY BE DISRUPTIONS TO YOUR SUPPLY CHAIN:
- Contact your suppliers, carriers, forwarders and brokers immediately to confirm.
- If possible, build forecasted and reasonable inventories of raw materials for which you have limited inventory and secure production and transport capacity from your supply chain partners.
- Review your alternate suppliers lists or start sourcing alternate suppliers, as needed.
- Consider consulting with a third-party logistics company, distributor, or group purchasing firm to determine alternate means for acquiring materials. Have your specific, forecasted needs on hand.
- Identify a resource at your company to monitor the crisis and potential impacts to your business.
- Develop a communications plan and standby statements for customers.