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In light of global events with corona virus, our first priority at AGT&T is making efforts to arrest the spread of the virus.
Corona Virus Pandemic Important Goal: Its Time to Re-Think on Basic Procurement Principal.
All our team members and associates have started working from home.We have asked our teams to refrain from travel, strictly practice social distancing, and follow the CDC’s guidelines on hygiene and preventative measures.
Our sincere heartfelt wishes go out to everybody who is impacted by corona virus all over the world right now those on the front-lines, those who are experiencing health issues, those who have lost someone, and to those who are struggling through economic hardship.
We had witnessing the struggle of the 2008 crash caused by economic conditions. Money was the key factor back then for survival. We had successfully passed the economic meltdown and now during Corona virus pandemic we have a mission to help companies control costs and plan for the future.
Our intention is to protect the livelihood of people so that they would never be negatively influenced by the lack of a company’s spend controls and oversight. During this difficult time, we hope we can rely on each other for support.
We recognize that everyone is facing new challenges. Businesses and individuals are struggling. Some teams are working remotely for the first time. Others are experiencing challenges of communicating and aligning with newly distributed teams. Companies are looking for ways to optimize every euro and cut unnecessary spending.
At AGT&T today we are committed to helping companies run their businesses effectively in the new economy post Covid2019. We are helping organizations implement immediate solutions for spend management and savings in procurement so they can stay ahead of uncertainty and be ready for new challenges that may be ahead.
To our existing customers and partners
We are dedicated to you more than ever. Be absolutely assured that during this time, our customer support and services will not be hindered. You can reach out for any procurement or other services. If we can be of help in any way, please schedule time in our calendars.
To our procurement & supply chain community
In the next few weeks, we plan on creating more teams for procurement on effective remote work processes and optimal digital tools to use with your teams. If there is anything else we can help you with, please let us know by emailing [email protected]
Covid19 pandemic has changed the state of business and shifted the way we live our lives. It’s a unique and complex time for all of us. We are always committed to supporting our team members, our customers, our partners, and contributing to fighting this global pandemic.
Manufacturing supply chains could face months of disruption, as factories in China are struggling to reopen in the aftermath of the coronavirus outbreak which has crippled parts of the country’s economy.
The best response to Corona Virus Pandemic, is to be ready before such a crisis hits, since options become more limited when a disruption is in full swing. And although its long-term consequences we do not know yet, the current outbreak already provides some lessons about how we can better prepare to deal with future large-scale crises.
Let’s first look at some actions that can be taken to mitigate the impacts of the crisis on supply chains.
Starting with existing team. The welfare of team is paramount, and obviously people are a critical resource. The companies that recovered fast post Hurricane Katrina in 2005 were those that tracked down all their employees who dispersed across the southeastern United States. Procter & Gamble even went so far as to create a local employee village on high ground with housing, foodstuffs, and cash advances for employees and their families.
Dont believe in rumours. Accurate information is a rare commodity in the early stages of emerging disasters, especially when governments are incentivized to keep the population and business community calm to avoid panic. Impact reports tend to be misleading. However, local people can be a valuable and more reliable source of information, so try to maintain local contacts.
Expect the unexpected. You have to expect the unexpected scenario especially when core suppliers are in the front line of disruptions. In the case of the corona virus crisis, China’s influence is so wide-ranging that there will inevitably be unexpected consequences. Everywhere inventory levels are not high enough to cover short-term material outages, so expect cause widespread chaos on common core components and materials.
Emergency operations center (EOC). Note that EOCs tend to exist only at the corporate or business unit level. That’s not good enough — a deeper, more detailed EOC structure and process is necessary. EOCs should exist at the plant level, with predetermined action plans for communication and coordination, designated roles for functional representatives, protocols for communications and decision making, and emergency action plans that involves both customers and suppliers.
Know thy suppliers. Map your upstream suppliers several tiers back. Companies that fail to do this cannot estimate likely impacts when a crisis occurs. After the 2011 Sendai earthquake in Japan, it took weeks for companies to understand their exposure to the disaster because they were unfamiliar with upstream suppliers. At that point any available capacity was gone. Similarly, develop relationships in advance with key resources — it may be too late after the disruption has erupted.
Understand critical dependencies and take action. Many supply chains have dependencies that put companies at risk. An example is when an enterprise is dependent on a supplier that has a single facility with a large share of the global market. For example before r the Sendai earthquake Hitachi manufactured approximately 60% of the global supply of airflow sensors, a critical component for auto manufacturers. The anticipated shortage of these items forced some automotive original-equipment manufacturers (OEMs) to ration the remaining airflow sensors to their highest margin product lines. The current corona virus outbreak has exposed Apple’s and many auto OEMs’ dependency on sourcing from China.
Create an efficient business continuity plans. These plans should pinpoint contingencies in critical areas and include backup plans for communications, transportation,supply, and cash flow. Involve your suppliers and customers in developing these plans.
Handle your internal team. A backup plan is needed for your own employees. This plan may include contingencies for more automation, remote-working arrangements, or other flexible human resourcing in response to personnel constraints.
Most global companies base their supply chain models on the assumption that materials flow freely globally, enabling them to source, produce, and distribute products at the lowest-cost locations around the world. Brexit, U.S.-China trade policy whiplash, and now the Corona Virus crisis have challenged the validity of this fundamental assumption. Corona virus illustrates the vulnerability of having so many sources located in one spot — and a spot that is far away from critical markets in North America, Europe, and Latin America.
We believe that a new kind of Model is needed that enables companies to rapidly reconfigure their supply chains and be Extra Agile and responsive to rapidly changing global trade policies, supply dynamics, and disruptions. Therefore, the question is: How should companies model their supply chains to operate effectively in a highly volatile world where consumers are intolerant of tardy responses? There are many options, and each one involves trade-offs between the level of risk that the enterprises can tolerate and the amount of operational flexibility it wants to achieve.
1. Structure with second sources. This supply-chain design model provides backup capacity for production, supply and distribution outages. The backup capacity spreads the risk of a disruption across two sources (as long as the disruption does not also affect the second source location). Consequently, it is better to have a second source outside the primary source region. Although this supply chain model lowers risk levels, it incurs higher quality monitoring, administring and unit costs. Economies of scale vary according to the amount of supply allocated to each supply source.
Structure to source locally. This model calls for a company to have production facilities with local sources of supply in each of its major markets. Since these sources are dispersed, the economies of scale are lower and the capital costs are higher, but the transportation costs are lower.
It’s impossible to anticipate the arrival of global crises such as the corona virus outbreak, but companies can mitigate their impacts by taking supply chain preparedness to a next level. One should act before a disruption occurs and adjust and execute new plans afterward rather than starting from scratch every time they are plunged into a new crisis.
Source Getty Images
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