Guidance for Tobacco Manufacturers- Mitigating Supply risks from COVID 19

Emaan March 16, 2020 No Comments

Mitigating Supply risks from COVID 19

 

Weathering the storm

For each product group Identify locations of Tier 1 suppliers

Analyse the BOM & Identify locations of Tier 2 & 3 suppliers

Analyse the location spread in Countries where your suppliers are and note:- quarantine period lockdown  Potential disruption in Industrial activity

Estimate % drop in production at suppliers over next 6months & time needed to recover

Collect the pipeline inventory & the earliest time you can receive those

Collect the inventory data of the affected parts and calculate the weeks of supply you have

Update your forecasting models to estimate the sales of your products over the next 6 months

 

 

Securing Short Term Supply

Enquire and identify which of your parts can be delivered by Suppliers with diversified sources e.g IZIPART.com

Fill potential supply disruptions with suppliers who are currently managing to maintain operations

Procurement criteria adapted to focus on lead time over cost after calculating financial risk of not having the part available

 

 

Securing Long Term Supply

Estimate probabilities of local disruptions and global disruptions and estimate total expected cost associated with suppliers being down

Determine the optimal number of suppliers you should keep for each part

Identify which of your parts can be procured from a diversified supplier e.g IZIPART.com to reduce stock outs in future

Maintain accurate part information on record (Part number, name etc) to facilitate communication with alternative supply sources