Options for operations and supply chains
Although it is not yet clear how coronavirus will affect companies, what is sure is the great uncertainty it is causing. This is true not least because the crisis has already triggered falling demand and, in some cases, interrupted operations entirely. Companies in the hospitality, retail and travel industries anticipate a sharp decline in customer numbers as people are advised to minimise mobility and avoid international travel. Many sectors will feel the squeeze. Our specialist advisers are here to support you with a focus on long-term solutions.
- Set up a crisis management team to manage the challenges efficiently and minimise negative impacts.
- Inform your business partners (such as customers, suppliers, banks and employees) about your business continuity measures.
- Identify potential limitations/interruptions to your sales and supply chains that could emerge if capacity or available headcount is reduced.
- Review your supply chain model and evaluate any changes you can make quickly (e.g. increasing safety stocks, considering alternative suppliers and new delivery methods).
- Identify critical business functions that could suffer if people get ill, have to stay home or struggle initially during the transition to home office.
- Calculate the time it would take to restore critical business processes in three scenarios: 1) best case; 2) moderate case; and 3) worst case.
- Based on these scenarios, define measures for budget controlling and cost saving.
- Identify opportunities to explore new business areas in order to avoid over-dependence on existing ones.
- Examine options to work with new strategic partners to meet customer needs.
PDF: COVID-19 Transfer Pricing Considerations
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