Managing suppliers and preventing a supply chain disruption

The unprecedented rise of COVID-19 and subsequent government measures are triggering immediate pressure on businesses’ supply chains across the world. This is caused by various factors:

• Reduced demand
  Increased unemployment and uncertainty leads to reduced disposable income.
• Workforce disruption
  Closure of non-vital factories and limited office accessibility.
• Uncertainty
  Depth, length and regional dispersion of economic fallout still unknown.
• Supply chain disruptions
  Delays and shortages due to complex and international supply chains.
• Irregular profits and cash flows
  Sporadic buying habits lead to irregular and unpredictable demand planning.
• Instability in the financial market
  Fluctuating share and commodity prices

COVID-19 is placing stress on existing business models in the Swiss market

• A 0.5% downturn expected in the Swiss economy. 
• Uncertainty as investors and consumers are unsure on impact and duration.

• Heavy impact on firms with complex supply chains (manufacturing, chemicals and luxury products).

• Reduced foreign investment on luxury goods and leisure.

• Reduced consumption due to closures and travel bans.

Flexibility and innovation will help businesses weather the storm

• Adjust growth and sales forecast using artificial intelligence. 
• Explore different revenue streams through business model innovation and flexibility.

• Illuminate E2E supply chains in order to gain visibility over critical corporate suppliers.

• Use technology to harness operational and public data to provide risk intelligence.

Where a key supplier is at risk of failure …

• Deploy turnaround expertise to deliver rapid cash and EBITDA benefits for the supplier to stabilise the situation.
• Whether customers, suppliers or strategic partners, quickly assess financial viability issues, identify a preferred action plan and support effective engagement with stakeholders to minimise disruption across your supply chain.

• Solutions may range from working capital expertise, to on-site restructuring support, to fast track M&A, to secure continuity of supply.