2X2 MATRIX -IMPACT OF COVID-19 ON DIFFERENT INDUSTRIES Mindset - - PowerPoint PPT Presentation

2X2 MATRIX -IMPACT OF COVID-19 ON DIFFERENT INDUSTRIES

COVID 19 IMPACTS

Procurement professionals are Managing Financial implications (cash flow of company) Reputation of company(Either vendor /customer) depends on Continuity in Delivery & Consistency in quality Mindset shifted from Luxury to Necessity (Question

• f survival)

AVIATION/AIRLINE

Jobs and cost cut down Airlines are requesting government support

Economic Loss within the Industry – upto $118 B till date

Travel restrictions in many countries leading to grounding of airplanes

OIL/GAS

Price expected to go below USD 20 bbl and Hits Negative as well Price has fallen by 70% 9.7M pbd drop in Demand.

MANUFACTURING

Downward pressure on Products Demand Financial Impact major global supply chain disruptions for raw metrical etc social distancing in workplaces that are typically worker-dense (e.g., manufacturing plants, warehouses, material movements and logistics, etc.)

F&B

Border closures, quarantines, and market, supply chain and trade disruptions could restrict people’s access to sufficient/diverse and nutritious sources of food, especially in countries hit hard by the virus or already affected by high levels of food insecurity. Closures of restaurants and less frequent grocery shopping diminish demand for fresh produce and fisheries products, affecting producers and suppliers restrictions of movement, as well as basic aversion behavior by workers, may impede farmers from farming and food processors disruptions are minimal as food supply has been adequate and markets have been stable so far. However, we have already seen challenges in terms of logistics bottlenecks

TELECOM

Leading to Collaboration between competitors Telcos may face issues with cash flow in the long term, similar to other industries 80% of network equipment are chinses Impacts planned investments particularly 5G Global demand for voice and data increased.

BANKING

Global growth is at risk. People and businesses are risk averse which would cause a sharp fall down in demand. Long term impact and industry transformation in the horizon.

AUTOMOTIVE:

Demand for cars is likely to be deferred or dropped given low consumer confidence, subdued economic activity, lower disposable income and higher prices. Demand for commercial Vehicles will be dependent on growth in Gross Material Products(GMP), which is expected to be slower. Component dependency will create supply side disruption.

ENTERTAINMENT

The Biggest concern is the likely continuation of social distancing measures to avaid the risk of any relapses. Revenues from advertisements will be dependent on revival of the aggregate demand in the economy

TOURISM & HOSPITALITY

Even when the travel bans are lifted, both foreign tourist arrivals and domestic tourist movements are expected to remain very low because of heightened risk aversion, measures related to social distancing and lower disposable incomes Slowdown in the tourism sector will have knock-on effects on hospitality. occupancy rates may remain very low untill Q1 2021 In an effort to increase and improve the bottom lines, many business are expected to cut down travel and accommodation costs for their employees.

E-COMMERCE

Slow demand due to lockdown in many countries but resilient for certain categories due to Panic Buying Sudden surge in demand for online delivery for essentials (labor shortage is a concern) Clearly mark out of stock items and ensure they cannot be

• rdered. During times of uncertainty, customers need the

reassurance that items are in stock and will be shipped if they are

• rdered. If items are out of stock, provide a realistic ship date

Distributor anticipates slower sales

BEST PRACTICES TURNED TO WRONG DUE TO COVID 19

1)Just in Time & Inventory management 2)Hedging 3)Monopoly vendors with strong contracts(outside of UAE) 4)Take or pay agreements 5)Orders placed to L1 vendor through E-auction (availability

• f materials /transit raw materials got held up)

6)Forecast accuracy

HOW TO REDUCE THE IMPACT:

Identify at-risk suppliers and gauge their ability to meet

• demand. Evaluate and measure

the risk and plan to mitigate the risk through alternates Find new sources of supply

• quickly. Co-ordination

&Communication with all the internal & external stakeholders plays main role Mitigate disruption and plan for what comes next. Prepare a Roadmap for Business continuity plan/risks

BALA ANUSHA

Procurement Manager RAK Ceramics Email : Balaanu.u@gmail.com https://www.linkedin.com/in/balaanusha/