We know some organisations are trying to operate with pandemic response arrangements that are too general for the specific impacts of COVID-19. To ensure your business can continue with minimal disruption to operations, businesses should take immediate actions to assess organisational exposure, positioning them to appropriately support key stakeholders, employees and customers.
Safeguard people and customers
- Leverage HR expertise to maintain employees’ physical and mental well-being, providing guidance to employees located in impacted areas and reassessing organisation-wide travel policies.For current information on situation related to COVID-19, please visit https://www.health.gov.sk/.
- Develop a back-up plan for impacted staff that may include contingencies for more automation, remote-working arrangements, or other flexible resourcing in response to personnel constraints.
- Leverage available internal and external technology to aid collaboration and equip employees with necessary tools to work remotely both in affected areas and with individuals in affected areas as seamlessly as possible. Please be aware of potential related cyber risks.
Assess supplier risk
- Create a crisis response team to facilitate the open and consistent flow of accurate information between key stakeholders, maintaining stakeholder confidence and informing customers who will be impacted.
- Establish a team to focus on supply chain assessment and risk management. This team can work to reconfigure global and regional supply chain flows.
- Map criticality of sourced materials to high-value products and revenue streams. Identify the components and raw materials that have the highest impact on revenue streams, helping to ensure scarce capacity is allocated wisely.
- Review contracts with key customers and suppliers to understand liability in the event of supply shortage.
- Determine exposure by identifying current and buffer inventory, building tier-transparency and short-term action plans.
- Conduct a value chain assessment of other risk factors that may escalate costs) and impact service and inventory capabilities, taking proactive action to address anticipated shortages.
- Aggressively evaluate near-shore options as potential backup to shorten supply chains by increasing proximity to customers.
Manage working capital & business plans
- Revise cash flow, working capital management and inventory forecasts alongside supply and demand predictions.
- Understand how financial stability may be impacted from further stock market declines and restrictions in access to funding.
- Review organisation-wide sales and operations planning and integrated business plans to help ensure tactical and strategic business planning is synchronised among all business functions.
- Businesses with data rich environments can harness capabilities in procurement, operations and R&D, using advanced simulations to help identify optimum performance trade-offs in the current crisis.
- Preparing your business to respond to the current challenges can feel remote and overwhelming. To assist you further, KPMG has developed ‘Managing Critical Moments’, a resource toolkit to support your organisation’s response to crises.