This is not the first time that we have been witnessing the impact of an virus outbreak on the people, property and environment. Such outbreaks not only disturb the well being of humans but also the hamper the supply chains. History has been the witness to such scenarios earlier as well, like when Tsunami struck Japan many semiconductor companies faced issues with their supply chains and with World Trade center. In today’s flat world where the company supply chain extend well beyond the country to global in using the resources be it raw materials, transport or manpower etc. Incidents such as above have potential to virtually disrupt and make the companies out of business for many days. Be it the current Corona Virus example, the impact of which is already felt with Tourism business in Thailand, so its full impact will be know in next 4 – 6 months. It likely will have major impact on Retail business, Automobiles, Transportation and biological businesses.
When a company models its entire supply chain using advanced technologies like Big Data and Machine Learning it not only given them opportunity to assess the current supplier risk identification but also helps in suppler risk management. These technologies along with ERP modules like SAP not only help organizations withering such impacts but also staying ahead in the competition. There are various models which can be explored be it network models outside ERP environment within the big data systems or using the Business Planning tools to model the impact. Artificial intelligence in procurement process or be it the complete supply chain Operation model like Plan, Source, Make, Deliver or Return. Such careful analysis requires not only careful planning but also huge data and companies’ willingness to share their primary supplier and also extended secondary suppliers. Such detail analysis requires data sharing, mutual trust and willingness to cooperate for a major cause.
The current scenario though can be contained giving a lesser impact on the supply chain but it is giving a very good business case in investing in the supply chain analytics and using advanced big data or machine learning algorithms and supplier / customers collaboration in sharing the knowledge to meet and wither any such calamities in years to come.