With employee work restrictions in place to combat the COVID-19 crisis, just 29% of companies can continue to be fully operational and 57% expect to be partially operational, according to the international “State of Supply Chain Survey” from Rapid Ratings.
To understand the extent of the damage wreaked on global supply chains by the COVID-19 outbreak, RapidRatings surveyed companies in the initial group of impacted countries (Italy, China, South Korea and Japan) as well as those in Europe and the U.S., which are now bearing the brunt. The findings represent frontline insights on supplier business continuity measures and anticipated disruptions to global supply chains as the pandemic unfolds.
“We are only just starting to feel COVID-19’s impacts on supply chains,” says James Gellert, CEO at RapidRatings. “Despite business continuity measures in place, many companies expect significant degradation in their ability to deliver in the foreseeable future. These survey results give a first-hand perspective on the difficulties private companies around the world are facing, and they are extreme.”
In the U.S., “lean” inventory management—whereby companies maintain the lowest amount of inventory necessary to serve their customers—has amplified concerns over ongoing disruption and post-pandemic recovery times. For example, 59% of U.S. companies say they don’t have enough inventory reserves on hand to continue shipping more than two weeks after ceasing to manufacture.
For more survey findings, visit: www.rapidratings.com
