Impact on Supply Chain
The US is probably the largest supplier of goods to the Cayman Islands
Governments around the world have begun to take measures that limit the movement of goods and people across borders. Restrictions imposed by the US government, for example, have included quarantine mandates and factory shutdowns across the country. As US is a key supplier to the Cayman Islands, supply chains have been affected.
If management believes there is a risk of disruption to their supply chains, they should take the following steps, among others, to mitigate the potential consequences:
- Understand the behaviour of disruptive models applied to the supply chain and establish the point in time at which such disruption is located.
- Consider re-prioritizing the production line to respond to market impacts associated with the threat, increasing safety stock levels, and stockpiling essential supplies and resources.
- Determine which vendors may be most severely impacted and if alternative vendors can provide a solution to meet business needs.
- Pre-qualify alternative domestic or international suppliers and outsourced vendors in case primary suppliers can no longer provide support.
- Assess if suppliers have documented plans for business unit continuity and information technology disaster recovery, including for critical business.
- Formulate contingency measures, give first response and anticipate possible failures in the supply chain. For example, examine the capacity of other suppliers in other geographical areas, change the production mix and plan for new delivery methods to reach customers.
- Take into consideration the absence of a large number of critical staff over an extended period.
- Estimate the recovery time for the supplier’s “mission-critical” business processes.
- Develop actions for business recovery. For example, find and approve new suppliers and alternative modes of transport, then identify which of those options are available, and sell products on that basis.