COVID-19 is causing unprecedented risks and challenges to the global automotive supply network. OEMs are monitoring inbound material with task teams to find parts and prevent shortages in their supply chains as the spread of the coronavirus rattles markets and threatens to roil manufacturing processes globally.
It is difficult to predict where this crisis is going or how it will impact operations, and consumer behavior and demand will also be affected by the crisis and the global financial consequences. Shortages of critical components may slow down production or prevent restart, with some regions being affected more than others at different times, opening up windows to mitigate risk.
Here are 6 steps your company can take to ensure a successful crisis management response:
- Build workforce deployment plans considering the following:
- Increased employee absenteeism
- Labor allocation to comply with social distancing
- Deep cleaning requirements
- Variability in product demand
- Revised shift schedules and up-time
- Understand COVID-19 spread scenarios at key supplier regional locations and potential impact on raw material position prior to scheduling manufacturing plant restarts
- Ensure critical equipment is properly stored and maintained while adjusting maintenance policies to changes in utilization (Assess need to pull ahead future preventative maintenance and process control improvements)
- Develop and implement spread prevention protocols promoting hygiene and infection control measures among workforce
- Analyze current inventory levels and strategically allocate based on production schedules
- Coordinate supply base communications with between Purchasing and Operations functions to protect re-launch