COVID-19 forces companies to seek new suppliers, due to supply chain disruption

According to DNV GL’s survey of 1.142 companies, 56% of the participants have experienced supply chain disruption following the coronavirus outbreak.

Specifically, the main reasons of disruption are delays in supplies (45% of respondents), logistic issues (34%) and limitations to international trade (24%).

In light of the pandemic situation, 57% are planning to strengthen and diversify their supply chain by working with new suppliers.

At the same time, companies are also looking to mitigate the impact of the pandemic by the introduction of digitalization (36%), revised supplier criteria (36%) and review stock management practices (36%).  

It is not surprising that the strategic change most companies have identified is to spread their supply chain risks by diversifying their supplier base, providing them more than one leg to stand on in the future.

….says Luca Crisciotti, CEO of DNV GL – Business Assurance.

In addition, severe effects such as reduced sales and revenues (57%), reduced production (39%) and increased operational costs (35%), make it extremely challenging for many companies to continue doing business.

COVID-19 is pushing supply chain risk management higher on the agenda and companies are forced to increase their maturity and improve their supply chain resilience.

…. Luca Crisciotti, concluded.

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