As a technology partner, SIM was challenged with the task of assessing the impact of COVID-19 on FMCG supply chains at an early stage.
It started with questions about the ability to perform audits in countries affected by the virus, such as China and Italy, followed by concerns about disrupted supplies and logistics.
According to Leontien Hasselman-Plugge, CEO of SIM, “The best way to address concerns, is to know your supply chains and simply ask and validate the answers, which is at the core of SIM."
For one retail client, the company asked all suppliers to share possible difficulties that they might expect due to COVID-19.
Within two weeks, this client knew that only a few suppliers (15%) were expecting problems in the coming three months and many of those had fallback plans.
The next area of focus that SIM sees is the impact on human rights in supply chains, mainly in the first mile during harvesting time.
The company developed surveys to help suppliers indicate possible risks concerning their workers and have engaged with many suppliers.
Surprisingly, many suppliers were more than happy to talk about the measures they take and the long term planning associated with potential COVID-19 risks.
This data will help with the analysis of current processes to reduce or prevent risks and increase positive impact.
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