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COVID-19 Risk Management in supply chains and Logistics

Covid-19 Risk Management In Supply Chains And Logistics
  • 13th June 2020

Siggol Logistics, just like other businesses, has had to come up with measures and strategies that protect its clients and employees. The Corona Virus has disrupted nearly every part of supply chains. From supply upstream to inbound and outbound logistics to demand planning and forecasting, all have had their fair share of disruptions.

This pandemic economic effect has trickled down to the Kenyan Economy with curfews, lockdowns, and restrictions of movement being put in place. It is these strains that have seen businesses begin to think of strategies that will build resilience and adjust to a “new normal”.

At Siggol Logistics we have come up with 3 approaches that will ensure we not only thrive but protect our stakeholders’ business interest. They include:


Siggol Logistics started by executing triage and mitigation actions. This is about safeguarding people, alleviating risks, controlling the damage and adjusting operations. The disruption phase involves:

• Implement operational safety measures, such as alternating crewing patterns, remote work readiness and Q&A hotlines.
• Assess realistic demand scenarios and shape demand — for example, by offering discounts.
• Conduct rapid, rough-cut Sales Operations and Inventory Planning (SIOP) scenarios. Rebalance production to address prioritized, and if needed, customer allocated demand.
• Preserve cash. Manage the materials inflow, right-size inventory, bolster credit and collection, and control the payments outflow.
• Assess supplier financial and operational health (including sub-tiers), provide support and/or secure alternate sources.
• Understand on-hand and in-transit inventory and identify options to redirect and re-deploy.
• Rapidly adjust and secure supplier, production and logistics capacity.


History shows that businesses better prepared for the rebound emerge stronger, gain market share and build lasting competitive strength. Our understanding at Siggol Logistics is that fast recovery requires preserving capabilities and capacity, making targeted investments and flexing up with agility. After this pandemic, Logistics Companies and other businesses will require:

• Deploy demand sensing to proactively identify opportunities and risks.
• Establish dynamic SIOP scenario planning and execution. Move to shorter and more responsive planning cycles.
• Rebalance product and services portfolios — for example, rapid rationalization and substitution strategies.
• Freeze, control and eliminate costs that aren’t critical and redeploy to profit- and cash-favorable activities.
• Invest in advanced analytics capabilities to improve insight, visibility and speed.
• Develop flex-up capabilities across suppliers, manufacturing and logistics.
• Make targeted acquisitions and secure supply capacity to protect a return to growth.


Once the business has stabilized post-crisis, strengthen operational and structural resiliency.

• Diversify and de-risk end-to-end network structure.
• Simulate supply chain disruptions and test robustness.
• Rethink traditional operating rules including just-in-time, minimum scale and inventory policies.
• Deploy multi-sourcing strategies for critical materials.
• Develop flexible supply, production and logistics partnerships.
• Invest in digital decision-support tools such as AI, machine learning and IoT track and trace.
• Strengthen cyber resiliency.

COVID-19 has made Siggol Logistics accelerate the transition towards smart, adaptive and resilient ecosystems. Businesses and Leaders must move quickly to stay ahead of the curve.

[ 1 ] Comments

Article well worded and factual on logistics and supply chain management. Thank you so much

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