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Survey: Only 29% of Companies Expect Full Operating Capacity During Outbreak

April 2, 2020 Leave a comment DRI Admin

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.

Other findings:

  • In China, 26% said they could be fully operational while working from home, compared to 37% in North America – but only 7% in China said they could not operate at all, as compared to 15% in North America
  • 27% of companies reported challenges in acquiring masks or cleaning supplies, and
  • 82% of U.S. companies said customers were being helpful with COVID responses, compared to 63% reported by Italy and China.

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