While we put in immediate measures to counter the impact of COVID-19, we as SME entrepreneurs should also consider medium and long term actions to help navigate crises that may arise in the future. This means developing greater agility and becoming more resilient.

This article looks at some action points for SME entrepreneurs.

Senario planning

Consider creating pre-emptive action plans with enhanced risk management practices based on analysis of past event and future threats. This will help organisations identify strategic and concentrated supplies that are at risk in major crises, and most importantly, recognize when current internal risk capacities prove insufficient.

Supplier risk management

Sudden crisis bring with it price surges as the demand may exceed the supply. Hence organizations may benefit by creating a balance between supply and demand, and internal stakeholders. Consider creating contractual agreements with critical suppliers on logistics based costs to reduce surges in prices during crisis.

End-to-end supply chain management

Consider advancing your abilities to model and predict consumer behavior, both in times of stability and uncertainty. A comprehensive end-to end supply management will help you cope up with demand.

Micro supply chain

While global and integrated networks have the advantage of economy of scale, organizations should be able to balance this with creating micro supply chains. Micro-chains bring in the added benefits of being more agile and flexible and may also bring manufacturing nearer to the point of purchase.

Technology upgrades

Technology upgrades are worth considering in most scenarios. Consider investing in execution tools like cloud-office technology and zero-touch models to equip your workforce to work remotely and effectively.

Source: https://home.kpmg/au/en/home/insights/2020/03/business-implications-of-covid-19-coronavirus/medium-to-long-term-actions.html