Survey: Only 29% of Companies Expect Full Operating Capacity During Outbreak
Struggling with work restrictions, supply chain disruptions, and other impacts of the COVID-19 coronavirus outbreak, only 29% of companies say they can continue to be fully operational, according to a recent survey.
In a recent Rapid Ratings State of Supply Chain Survey of more than 1,300 organizations worldwide, 57% of respondents expect to be partially operational during the pandemic, even factoring in supplier business continuity measures and anticipated supply chain disruptions. Though 62% of companies have a pandemic response policy, few are able to maintain full productivity because of social distancing guidelines, with small businesses impacted hardest (76%).
Among the companies that have already closed facilities, 42% did not expect to re-open for another 2-4 weeks, while 15% expected it to be another month at least.
The practice of lean inventory management – maintaining the lowest amount of inventory required to serve customers) – has created a larger long-term concern, with 59% of U.S. companies saying they don’t have enough inventory reserves on hand to continue shipping more than two weeks after ceasing to manufacture.