Updated: May 15, 2020
Direct customer impact
As on-site visits are not currently allowed, non-witnessed FAT’s as well as remote customer audits and/or re-mote versions of events such as Security of Supply days, can be offered when critical. Depending on government health regulations, this situation could continue through the rest of 2020. For some sites there are Rx360-reports available for purchase. If you are interested, please reach out to your sales representative for more information.
Yes, we have had a few cases. The individuals and personnel connected to those have been quarantined according to local and governmental guidelines and the areas have been sanitized prior to production recommencing.
Limited disruption is seen at this time, mainly from China and India. The situation is dynamic, and circumstances differ by country. We continue to monitor the situation and use our extensive Global Sourcing Network to stay abreast of the latest news and changes regarding the virus. In addition, we use a continuous incident monitoring tool which provides us with global updates in real time.
We have been in contact with all our suppliers to understand any supply chain impacts. We have identified the sources likely to be of highest risk and we have conducted a survey with the most important suppliers for each of our businesses. We monitor and track incoming deliveries to ensure that we are aware in advance of any supply chain disruption. In addition, where prudent we are working with suppliers to secure an appropriate level of safety stock for key raw materials.
We use a global supply network and therefore we continue to closely monitor our supply base to identify risks including those at our sub-tier suppliers. We support our supply base where necessary to alleviate supply risks as far as possible.
Demand across all portfolios remains high with significant levels of previously un-forecasted orders received. At this time there is minimal impact to delivery lead times for the significant majority of items. A weekly rhythm is employed to review incoming demand and operational planning to flex manufacturing capability to reflect the changing need.
Business continuity management
Across the sites we have been able to maintain capacity according to expected annual levels. Production is not constrained due to raw materials or personnel absence due to COVID-19. Some items might be subject to longer lead times due to a significant number of unforecast orders received at this time.
Risk of unacceptable consequences for the site/s/ and/or the customers, as per pre-defined criteria per site.
Yes. First and foremost, we take the health, safety and security of our global colleagues, customers, and supply partners very seriously. Since the news was first reported, we convened a dedicated multi-functional team to coordinate our response. This team continues to be in contact with the Centers for Disease Control and Prevention (CDC) and seeks guidance from the World Health Organization (WHO) and other global health organizations. Employee safety is part of the normal EHS framework that is also escalated in a situation like the current pandemic.
Not specifically, as all pandemics are different and require different scenario planning. The current state is that the manufacturing sites are building upon their pandemic plans to complement the Business Continuity Plans.
The scenario planning includes e.g. mapping of staff in terms of knowledge and competence as well as prioritization of products in the event that staffing levels become limited.
For the critical manufacturing personnel, exceptions via authorities/governments will be applied to continue production to the extent that is currently possible.
Several risk mitigation activities have been implemented, such as social distancing, hygiene procedures and use of PPE, cross training of personnel, working in shifts to reduce numbers of staff present at the same time, slot times in lunch restaurants, extended cleaning, isolated work areas, staff not critical for production is working from home.
Internal guidelines are in place and each site is closely monitoring guidelines from the local authorities.
Fulfillment and logistics(updated May 15, 2020)
Logistics and the movement of goods during the COVID-19 situation has been and remains dynamic, however the overall global logistics capacity has stabilized with an increase in air cargo capacity over recent weeks.
Our fulfilment and logistics teams, through close daily connection with our distribution partners, have been able to maintain the movement of goods globally. Overall, we are currently experiencing an additional transit time globally of +4 days in addition to product lead times.
Transit times from:
- US to Europe are at +5 days
- EU to US at +6 days (shipments have been consolidated onto charter flights to ensure secure supply)
Please note: While transit times are currently longer than pre-COVID shipments, where possible we continue to move materials between our regional distribution centers 10-14 days earlier than normal, to mitigate the increase in transit times.
Shipments into China have eased, while moving product out of the country remains challenging. Shipments into India have also improved-with more airport staff able to off-load airplanes. However, the situation still remains challenging.