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Develop a risk-assessment plan to identify and monitor risks across all tiers of the supply chain.

In the long-term, Dun & Bradstreet recommends three key actions: It is a given that port closures will continue as the spread of COVID-19 and other unexpected events persist, and the ramifications to companies’ bottom lines will continue to increase as shipment costs and incremental time needed to receive raw materials and goods becomes a major component of overall supplier costs. SCMR: What steps must be taken to mitigate risk in the future?Īlster: Far bigger than the immediate steps for remediation, supply chain leaders should be asking themselves how they can mitigate the risk of future impacts to the delivery of goods and materials in the coming year.

How urgently do you need the goods that are currently backlogged in and around the Ningbo-Zhoushan region?īased on these answers, supply chain leaders can then develop a plan to identify alternative suppliers in non-impacted regions of the world.

How many tier 1 and 2 suppliers do you have in your supply chain that have been negatively impacted by this incident in the region?.

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Dun & Bradstreet recommends taking an immediate assessment of a company’s full supply chain, asking: shippers best respond to this crisis?īrian Alster: We are at a critical moment in time as the continuation of port and terminal closures is further weakening an already fragile global supply chain. Supply Chain Management Review: How can U.S. “The immediacy of the moment often takes away from the importance of planning for the future.” “We are at a critical moment in time as the continuation of port and terminal closures is further weakening an already fragile global supply chain.” Says Brian Alster, General Manager, Third-Party Risk & Compliance, Dun & Bradstreet. But all major Pacific Rim ports are vulnerable to a host of similar disruptive events. We noted at the time that the event triggering this port’s closure was due to another outbreak of COVID-19. Start yours now.Īs we reported earlier in the week, when operations were suspended indefinitely last month at China’s Meishan terminal in the Port of Ningbo-Zhoushan, industry analysts were quick to detect a complex dysfunctional trend. PLUS+ subscriptions start as low as $129/year*.

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