Green Economy Journal Issue 49

VALUE CHAINS
VALUE CHAINS
Customer support programs
When asked to score how much the virus was disrupting their sources of
demand, for example changes in key markets or consumer behaviour, and
then their supply network, including suppliers and manufacturing centres,
respondents gave an average result of 7 out of 10 (Figure 3).
Three stages of activity will be needed to help supply chains back onto
a more secure, durable footing.
Employee protection
Figure 3. Supply chains have only
moderately adapted to the crisis,
with automotive facing the biggest
challenges. Larger companies’
supply chains adapted better,
especially companies with revenues
greater than US$50-billion.
1. React: immediate actions to ensure business continuity
Taking care of employees was the number one priority for respondents,
and a few active measures to protect both physical wellbeing and mental
health have been put in place, such as the use of personal protective
equipment (PPE), restrictions on employee contact in the workplace,
switching employees to working from home, and travel restrictions
(Figure 4). None of the 300+ respondents said they hadn’t taken any steps
to protect employees.
Companies are also supporting suppliers, customers, and society at
large. Suppliers have been given a helping hand in various ways, from
advances or premium payments to guaranteed purchase promises. Many
firms have repurposed their production lines to produce masks, ventilators,
and other much-needed goods; turned to new types of transportation; or
prioritised orders for vulnerable customers.
Figure 5: Leading companies are taking action to mitigate impact on
customers. Nine out of 369 surveyed companies had not taken any
action to support customers.
One area that could improve significantly however is adapting delivery methods to ensure minimal human contact: only 40% of respondents had put
these measures in place (Figures 5 and 6).
“We see many companies sharing intellectual property – for example, 3D/CAD design files – to allow other companies to also produce ‘their’
products to ensure sufficient supply of high-demand goods.” - Chief commercial officer, technology company
Source: Kearney, COVID-19 survey (as of April 10)
Figure 4: Companies are actively taking measures to protect
employee wellbeing.
Figure 6: Companies supporting society to fight Covid-19.
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