Tag Archives: factory

COVID-19: Managing supply chain risk and disruption

Posted on by
COVID-19: Managing supply chain risk and disruption

COVID-19: Managing supply chain risk and disruption

Coronavirus highlights the need to transform traditional supply chain models

Could COVID-19 be the black swan event that finally forces many companies, and entire industries, to rethink and transform their global supply chain model? One fact is beyond doubt: It has already exposed the vulnerabilities of many organizations, especially those who have a high dependence on China to fulfil their need for raw materials or finished products.

China’s dominant role as the “world’s factory” means that any major disruption puts global supply chains at risk. Highlighting this is the fact that more than 200 of the Fortune Global 500 firms have a presence in Wuhan, the highly industrialized province where the outbreak originated, and which has been hardest hit. Companies whose supply chain is reliant on Tier 1 (direct) or Tier 2 (secondary) suppliers in China are likely to experience significant disruption, even if, according to the most optimistic reports, conditions approach normalcy in China by April.

How can organizations respond to the immediate change?

As the COVID-19 threat spreads, here are measures companies can take to protect their supply chain operations:

For companies that operate or have business relationships in China and other impacted countries, steps may include:

  1. Educate employees on COVID-19 symptoms and prevention
  2. Reinforce screening protocols
  3. Prepare for increased absenteeism
  4. Restrict non-essential travel and promote flexible working arrangements
  5. Align IT systems and support to evolving work requirements
  6. Prepare succession plans for key executive positions
  7. Focus on cash flow

For companies that produce, distribute, or source from suppliers in China and other impacted countries, steps may include:

  1. Enhance focus on workforce/labor planning
  2. Focus on Tier 1 supplier risk
  3. Illuminate the extended supply network
  4. Understand and activate alternate sources of supply
  5. Update inventory policy and planning parameters
  6. Enhance inbound materials visibility
  7. Prepare for plant closures
  8. Focus on production scheduling agility
  9. Evaluate alternative outbound logistics options and secure capacity
  10. Conduct global scenario planning

For companies that sell products or commodities to China and other impacted countries, steps may include:

  1. Understand the demand impact specific to your business
  2. Confirm short-term demand-supply synchronization strategy
  3. Prepare for potential channel shifts
  4. Evaluate alternative inbound logistics options
  5. Enhance allocated available to promise capability
  6. Open channels of communication with key customers
  7. Prepare for the rebound
  8. Conduct global scenario planning

Looking ahead: the imperative for a new supply chain model

A decades-long focus on supply chain optimization to minimize costs, reduce inventories, and drive up asset utilization has removed buffers and flexibility to absorb disruptions─and COVID-19 illustrates that many companies are not fully aware of the vulnerability of their supply chain relationships to global shocks.

Share your opinions with us in the comment box. Subscribe us to get updates.

Read more at COVID-19: Managing supply chain risk and disruption

Huawei’s European factory to boost supply chain efficiency

Posted on by

Huawei's European factory to boost supply chain efficiency

The China-based tech giants, Huawei, is set to build a factory in France to produce 4G and 5G wireless equipment to accelerate supply chain efficiency.

According to analysts, the new facility will allow Huawei easier access to its telecommunications carriers in Europe, while also easing concerns over alleged spying for China’s government.

Stéphane Téral, executive director of telecommunications research at IHS Markit, commented: “At this stage of the mobile industry, it is critical for Huawei to have a radio communications factory somewhere in Europe to relieve the pressure on the existing ones in China. “We clearly see firsthand the disruption the coronavirus crisis is creating.”

It is expected that the factory will produce €1bn worth of products annually, while also creating 500 jobs.

It is thought that the company chose France due to the country’s ideal geographic position, mature industrial infrastructure as well as its highly educated talent pool. Peter Liu, vice-president analyst at Gartner, said: “The European facility will improve Huawei’s efficiency because the company will be able to integrate itself into the supply chain in Europe.”

The news follows Huawei’s launch of its 5G Innovation and Experience Centre in London which encourages increased collaboration between businesses and innovators in the development of 5G ecosystems. Victor Zhang, Vice-President of Huawei, added: “With the opening of our 5G Innovation and Experience Centre in London we, as a leader of 5G, are taking another important step. What we have opened today will enable true collaboration amongst UK businesses and technologists and showcase the huge potential of 5G applications for both the private and business sectors.”

Read more at Huawei’s European factory to boost supply chain efficiency

Leave your comments below and subscribe to us to get updates.

Lasting Effects of Supply Chain Mismanagement

Posted on by

In New York City, March 25, 1911, 123 women and 23 men died from fire, smoke inhalation, or falling or jumping to their deaths when a fire broke out in the building where their factory resided on the eighth, ninth, and tenth floors.

The incident was known as the Triangle Shirtwaist Factory fire and is the deadliest industrial disaster in the history of the New York City.

This tragedy and loss of life eventually led to legislation requiring improved factory safety standards.

While this famous incident is over 100-years-old, workplace deaths and injuries are still happening today.

In a recent case, Cusseta, Ala., Regina Elsea was working at an auto parts manufacturer on the assembly line when a mishap occurred, and Elsea was impaled by one of the robots. She died the following day.

The Occupational Safety and Health Administration reviewed Elsea’s case and found the contracting company she worked for was in violation of a federal law that could have prevented her death.

Sadly, in both cases these accidents could have been prevented with better evaluation of contractors and adherence to higher standards of safety in the workplace.

Read more at Lasting Effects of Supply Chain Mismanagement

Share your opinion with us in the comment box and subscribe us to get more updates.

Related articles

Is Flowcasting the Supply Chain Only for the Few?

Posted on by

Flowcasting has often been referred to as ‘the Holy Grail’ of demand driven supply chain planning (and rightly so).

Driving the entire supply chain across multiple enterprises from sales at the store shelf right back to the factory.

So is Flowcasting a retail solution or a manufacturing solution? Many analysts, consultants and solution providers have been positioning Flowcasting as a solution for manufacturers.

They’re wrong.

While it’s true that some manufacturers have achieved success in using data from retailers to help improve and stabilize their production schedule, the simple fact is that manufacturers can’t achieve huge benefits from Flowcasting until they are planning a critical mass of retail stores and DCs where their products are sold and distributed.

For a large consumer packaged goods manufacturer, this means collecting data and planning demand and supply across tens of thousands of stores across multiple retail organizations, all of which have their own ways of managing their internal processes.

Read more at Is Flowcasting the Supply Chain Only for the Few?

Share your opinions with us in the comment box and subscribe to get updates in your inbox.

Related articles