• Twitter
  • LinkedIn
  • Facebook
  • Instagram
  • Youtube
Login Call Kapitus now: (800) 780-7133
New Kapitus
  • Problems We Solve
  • Products We Offer
  • Partner With Us
  • Blog
  • APPLY NOW
  • Search
  • Menu Menu
coronavirus supply chain disruption

Supply Chain Disruption: Managing Impact from COVID-19

March 9, 2020/in Operations, Sales and Marketing /by Wil Rivera

U.S.-based SMBs account for roughly one-third of all imports into the country. Supply chain disruption during the COVID-19 era proves to be a critical threat to operations and profitability.

However, means do exist for businesses to mitigate the impact of these market disruptions. Simultaneously, businesses can create improved supply chain protocols to manage such disruptions.

Below, you’ll find insights from Suuchi Ramesh, founder and CEO at Suuchi Inc. and Albert Goldson, Executive Director at The Cerulean Council. Their tips can help your business navigate the current landscape. They can help you chart a path forward to improve you and your business’ resilience in any market.

Immediate Impacts of COVID-19 on Supply Chain

What can SMBs expect to experience as COVID-19 extends its reach across the globe? “The immediate impact will be robust customer demand for current inventory,” says Goldson. Businesses will stockpile inventory, which means suppliers could experience accelerated inventory sell-through. While the initial cash flow could be considerable, there are impending downsides.

Increased demand will cascade into multiple supply chain disruptions. Businesses might find themselves caught between depleted inventory and extensive replenishment delays due to indefinite lead times from overseas suppliers. Goldson states that companies could experience a cash flow squeeze due to uncertain lead times.

Ramesh anticipates that U.S.-based businesses will turn an eye toward risk and shift to an emphasis on local-for-local supply chains. “With more local control, businesses will have a better way to combat macro-economic variables.” Businesses are beginning to consider the impact COVID-19 might have on different areas of their supply chain. Ramesh advises companies to hedge their risks against disruptions from all suppliers.

“Today, it’s the east, but it really could be anywhere across the globe,” she says.

Four Tips for Managing Supply Chain Disruption

The following tips can help businesses to hedge risks and mitigate cash flow disruptions due to COVID-related delays.

Focus on Digital Systems

A supply chain is only as good as its communication protocols. That’s why Ramesh says businesses should consider investing in digital systems to improve communication in their supply chains.

“For companies who are primarily communicating by email or phone calls, when things like COVID-19 happen, communication comes to a halt,” says Ramesh. “If you have a system that connects your entire supply chain, it provides continued communication when something like this happens.”

Diversify Your Supply Chain

Now’s the time to diversify suppliers and initiate outreach to other potential suppliers. When businesses can develop a base of multiple supplier countries, they can still course-correct when one global supply center is affected. While new suppliers might seem to be a short-term solution, Ramesh considers alternative sourcing to ultimately be a long-term play.

“For brands that are lethargic or just don’t have the resources to think about multiple sourcing partners, it’s natural to procrastinate if there are no immediate risks,” she says. “When you’re forced to search for a short-term alternative, if successful, it can turn into a long-term opportunity.”

Goldson advocates for businesses using this time to establish multiple alternative suppliers.

“Even if you already have a secondary source, establish a third source,” says Goldson. “The world economy is entering a period of high risk and uncertainty, and the more options you have, the better you can weather the storm.”

“Stress Test” New Suppliers

Businesses can identify new suppliers and engage in entry-level transactions. Therefore, it’s critical to ensure new partners can meet demands under extreme conditions. Goldson advises that companies occasionally “stress test” suppliers by giving secondary suppliers a larger than usual order to see if they can handle the demand.

“It’s counter-intuitive, but think of how you test your car’s air-conditioner in the winter to make sure it’s running okay after months of non-use,” he says. These stress tests can help businesses identify maximum orders per supplier and create fulfillment strategies for a wide array of supply chain disruptions.

Focus on Compliance and Sustainability

As you put stress test protocols in place, Ramesh advocates for businesses to find a newfound focus on compliance and sustainability. “A disaster like COVID-19 is one thing, but you want to ensure that if any type of similar issue has impacted a partner, they have the procedures, resources, and steps in place to combat the issue and a digital system to record it all,” she says.

Have open and frank conversations with suppliers about current market disruptions. Ask them how their businesses are making adjustments to prevent future slowdowns on their end. Communicating about compliance and sustainable business practices across varied market conditions will ultimately strengthen the relationship between customer and supplier for the long term.

You now have four tips to help you shore-up supply chain disruption in the wake of COVID-19.

By diversifying your supply chain and investing in better communication across the board, you’ll be prepared to withstand market variances both now and in the future.

[skyword_tracking /]

Share this entry
  • Share on Facebook
  • Share on Twitter
  • Share on WhatsApp
  • Share on Pinterest
  • Share on LinkedIn
  • Share on Tumblr
  • Share on Vk
  • Share on Reddit
  • Share by Mail
https://kapitus.com/wp-content/uploads/2020/03/iStock-1156716095-scaled-1-scaled.jpg 1707 2560 Wil Rivera /wp-content/uploads/2020/03/Kapitus_Logo_white-2-300x81.png Wil Rivera2020-03-09 14:45:432020-03-09 14:45:43Supply Chain Disruption: Managing Impact from COVID-19

LATEST FROM KAPITUS

  • Latest Riot-Related Small Business Loans and Grants
  • Forget the Feds! Take advantage of Regional Support for Your Business
  • Life-Saving Measures for Small Businesses on the Brink of Closure
  • Banding Together: How Businesses are Joining Forces in the Age of COVID-19
  • Rethinking Revenue Models During Re-Opening and Beyond

Subscribe To Our Blog For More Tips On How To Grow Your Business

Categories

  • Accounting & Taxes
  • Company News
  • Featured Stories
  • Financing
  • Human Resources
  • Living Your Best SBO Life
  • Making Her Mark – Influential Women Business Owners
  • Monthly Must Reads
  • Operations
  • Sales and Marketing
  • Technology
  • Uncategorized

About Us

  • Media Center
  • Team
  • Careers
  • Events
  • Success Stories
  • The Kapitus Difference
  • Developer Documentation
  • Blog

Products

  • Revenue Based Financing
  • Helix Healthcare Financing
  • Business Loans
  • SBA Loans
  • Line of Credit
  • Invoice Factoring
  • Equipment Financing
  • Purchase Order Financing
  • Concierge Services

Contact Us

  • (800) 780-7133
  • Email Us

Signup For Our Newsletter

Copyright 2021 • Kapitus • All Rights Reserved | Loans made in California are issued by Strategic Funding Source, Inc. dba Kapitus, pursuant to California Finance Lenders License No. 603-G807.
Sitemap | Terms & Conditions | Privacy Policy - Enfold WordPress Theme by Kriesi
  • Twitter
  • LinkedIn
  • Facebook
  • Instagram
  • Youtube
Tips for Protecting Cash Flow During COVID-19 Market Disruptions protecting your cash flow during the coronavirus outbreak How Customer Service Can Help Small Businesses Survive A Potential Slowdown How Customer Service Can Help Small Businesses Survive A Potential Slowdown
Scroll to top
  • Whether you want to learn more about our financing options, are interested in becoming a partner or just have a general question, we’re here to help! Simply fill out the form below and we’ll get it directly into the inbox of the right person.
Partial Capture

Step 1 of 4 - Tell us about you

25%
  • Sign up for the Kapitus Partner Program!

  • Sign up for the Kapitus Partner Program!

  • Sign up for the Kapitus Partner Program!

  • Sign up for the Kapitus Partner Program!

Step 1 of 10 - TELL US ABOUT YOUR PRIMARY FINANCING NEED

10%
  • Find the right financing product for you.

    Answer a few questions and we’ll match you with the best product based on your needs and current situations.

  • 1. Answer a few questions. You let us know some basic information about your financing needs, so we can find a match.
    2. See your financing matches. You'll get matched with up to four financing options based on your answers.
    3. Apply for financing. You can apply for all of your financing options by completing one simple application and providing a few documents.
    4. Get an Advisor: You have the option to be assigned a financing specialist to help guide you through the application process.
    If you are looking to determine the best financing option for you, our matching tool streamlines the process and arms you with information that you can use before you apply. To match you with your best options, we ask you to answer a series of basic questions about your existing and future needs, current financial health, and your financing preferences – including amount to be financed, ideal terms and financing urgency. Our system then finds you up to four financing options to fit your needs. Once you’re matched, you can expect to be contacted by one of our financing specialists to help you navigate the application and selection processes.
  • Find your financing match


  • Each financing product has its own minimum and maximum requirements around the amount of money that can be acquired through that option.
  • Find your financing match



    • Business Accountants
    • Marketing & PR Agencies
    • Commercial Cleaning Companies
    • Printers
    • Human Resource & Payroll Firms
    • Office Supplies Organizations
    • Salons/Spas
    • Gyms & Other Workout Studios
    • Pet Services Companies
    • Personal Accountants
    • Home Cleaning Companies
    • Residential Landscaping
  • There are financing options created to meet the specific needs of particular industries.
  • Find your financing match

  • Thank you for reaching out to Kapitus. Unfortunately, our financing products are only available for existing businesses and we will not be able to help you at this time.


  • The amount of time your business has been in operation is a deciding factor in the type of financing options available to you.
  • Find your financing match


  • Each financing product has its own minimum requirement for the amount of revenue being brought into a business on either a monthly or an annual basis. In addition, your monthly and/or annual revenue can dictate the length and term on your financing option.
  • Find your financing match


  • Each financing product offers different payback lengths and terms.
  • Find your financing match


  • Each financing product has different paperwork and underwriting processes. As a result, the amount of time it takes to get approved for one type of financing over another can vary significantly.
  • Find your financing match

  • Find your financing match


  • There are financing options for every credit type, however your personal credit score will determine your eligibility for each financing type.
  • We’re finding your match

  • Get A Free Quote Today

  • When Did You Start Your Business?
  • Kapitus needs the contact information you provide to us to contact you about our products and services. You may unsubscribe from these communications at any time. For information on how to unsubscribe, as well as our privacy practices and commitment to protecting your privacy, please review our Privacy Policy.