The year started solidly, but the Coronavirus (COVID-19) pandemic is proving to be a serious test on the resilience of global supply chains.
Despite drastic efforts to contain the spread of the virus, COVID-19 has already reached over 175 countries. With the percentage of positive cases growing on a daily basis, communities, ecosystems and supply chains across the world are at risk.
The 2002-2004 SARS epidemic is the best benchmark that can be used to estimate the impact of this virus. Economists estimate the cost of SARS on the global economy was around $40 billion. One analyst believes COVID-19 could cost all supply chains up to $400 billion over the next two years.
Global supply chains are a dynamic network of highly interconnected suppliers, manufacturers, logistics activities and distribution facilities that provide goods and services to the end customer. Supply chains have become increasingly sophisticated and are key to the success of many organisations. However, over the years their intertwined, global nature makes them more vulnerable to disruptions and risk.
Optimistic forecasts predict that ‘normalcy’ will return to China by April 2020 but the full impact of COVID-19 on supply chains is still to be seen. COVID-19 will have financial and economic repercussions for global supply chains, from raw materials to finished products.
COVID-19 may be the catalyst that encourages companies to revisit their global supply chain strategy and expedite their need for digital transformation. Fortunately, new supply chain technologies have emerged that focus on improving how revenue is managed and margin is created across the end-to-end supply chain.
Trade revenue management software helps businesses track their revenue through pricing and rebate accruals management at each point in the supply chain. This gives the ability to be agile helping supply chains adjust to disruptions and risks in the market.
What supply chains get from pricing and rebate software…
How supply chains can be more competitive…
With a centralised trade revenue management solution that streamlines pricing and rebate management, you’ll transform your supply chain management and build resilience. Supply chains will become more agile, profitable and better able to deal with disruptive events.