Global supply chains, especially in the manufacturing sector have experienced many different forms of disruption over the years – from earthquakes and tsunamis through to social unrest and even piracy in the Indian Ocean. Each disruption brings with it uncertainty in terms of how suppliers will be impacted and how long the disruption will last for.
However, with the coronavirus, or COVID-19 outbreak as it has become known, things couldn’t be more different. This is not a short term disruption, this could go on for many months and impact companies all around the world. In fact, Oxford economics estimates that this particular outbreak will cost the global economy $1.1 trillion and Dunn & Bradstreet take that one step further and are predicting that nearly 5 million businesses around the world could be impacted. At OpenText™, we have researched how businesses are being impacted by COVID-19 in a new white paper.
Manufacturers, especially in the automotive sector, rely on the timely delivery of parts to feed their just-in-time production systems. With so many automotive suppliers now being based in the Far East, it is inevitable that many western-based OEMs may have to shut down their production operations in the next few weeks. From high tech to retail, pharma to government, every single industry sector is going to be impacted in some way.
CXOs around the world are accelerating the development of business continuity plans to ensure that companies can, as much as possible, function as normal during this disruptive period. Coronavirus will bring with it self-quarantine periods where employees self-isolate at home and this is where corporate IT infrastructures have to be flexible enough to support remote workers. My colleague recently posted a blog discussing remote access to business applications and this is a critical need for high tech companies in the Far East during a time of crisis. In fact, there are three key areas where businesses need to focus when choosing solutions to help during a time of crisis.