The Coronavirus, officially known as COVID-19 has disrupted supply chains worldwide. Stock markets have negatively spiraled down, causing wild swings in every stock portfolio, adding great deal of fear, uncertainty and doubt within every individual and at all levels of various organizations.
Coronavirus after fatally hitting Asia, Europe and now the USA, has forced almost every business to shutdown temporarily to prevent – the spread of the disease and risk their business from any irreversible damage. Due to the effects of the global shutdown, we can expect large delays in getting required supplies as the supply chains attempt to clear the colossal demand backlogs.
Meeting customers’ demands – Challenges & risks
Before COVID-19 crisis cast its shadow on the global scene, customers worldwide were spoilt with “just-in-time” customized deliveries across geographies. The aftermath of COVID-19 will pose huge challenges for suppliers and customers alike. The earlier spoilt customers will have to face many “out-of-stock” situations and if lucky, will eagerly have to wait from anywhere between couple of weeks to a month’s time for delivery of their order as suppliers will try to restart production and order new supplies from companies that were in-turn shutdown.
For suppliers – many materials will be in short supply, mobilizing the labor force back to their feet will be a huge challenge as many would have taken to a new job, while some could have lost their life to the deadly pandemic or still recovering. Logistics may initially be difficult to source as material/equipment may be positioned in inconvenient locations for pick-up and over-booked. As a long-term measure to minimize any inevitable risk & disruption of business, suppliers will have to carefully consider selecting & sourcing from distant manufacturers, if any.
SAP Global Trade Services can help minimize the risks for suppliers/businesses by managing inbound and outbound customs processes, empowering with real-time visibility across their supply chains and ensuring strict compliance to regulatory requirements.
How can Krypt help?
In all probability, when things settle down, every business will need to carefully navigate through restarting their supply chain & logistics operations. Krypt can assist businesses with these challenges across industries by –
- Implementation of industry-specific best practices in such inevitable scenario
- Timely getting to know every products’ country of origin
- Conducting regular Sanctioned Party List checks/audits
- Getting correct product classification, licenses, and customs paper work
- Optimization of warehouse inventories & transportation, and
- Adhering to trade compliance program and thereby avoid hefty fines & penalties
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