Four Questions to Manufacturers During COVID-19

Editor’s Note: Simon Jacobson is Vice President Analyst, Gartner

In the response to the shortages created by the COVID-19 pandemic, manufacturers of all sizes and capabilities have announced their intentions to repurpose their capacities. Instead of vacuum cleaners, bourbon and fashion, they now produce ventilators, disinfectant and personal protection equipment (PPE). Ford Motor Company, LVMH and Bauer are only three of a growing list of organizations worldwide, doing what they do best to address the supply gaps.

The actions of those companies are proof how innovative and agile manufacturers can be in times of need. However, preparation must proceed pivoting and any supply chain leader considering such a move should be able to answer four questions before getting started.

Question No. 1: Do We Have the Core Competencies and Existing Capabilities to Match Current Needs?

Shifting production from something you know very well to an unknown product is not done easily. As a supply chain leader, you must evaluate what your core competencies are and if they match with your intentions. Can you access the capacity and know-how needed across production lines to support this shift? Different product designs come with some new production techniques, methods, and procedures. Upskilling could be required. Is your network equipped to pivot? Identifying the sites to leverage is tricky. Retrofitting and installing new production capacities can be too costly and time-consuming. Other sites might be servicing demand for your current portfolio. Also, can your logistics partners and supply base also support you?

Question No. 2: What Inventory Can We Use – And Can We Get more?

It's a good idea to manufacture a product that utilizes the existing inventory. Ethyl alcohol is a basic ingredient in hand sanitizer, engine parts can be customized and assembled to power a ventilator. What will you do when that on-hand inventory runs out? Check with your suppliers if they can continue or expand their usual deliveries. If there is a shortage – many local businesses that aren't operating due to COVID-19, have offered to donate their stock.

Question No. 3: How Do We Share Resources?

Do not expect to deliver a full solution on your own. Instead seize the opportunity to collaborate and explore new ecosystems. Yarn producers and fashion designers can work together to create face masks. The engines from a car production line can be turned into ventilators by a medical engineering company. A good example is the Ventilator Challenge U.K. initiative that ties together multiple companies from different industries. In other instances, where can skills be traded? Forklift drivers and shipping clerks from local non-essential businesses that are not operating can help fill gaps in the factory workforce

Question No. 4: Are We Able to Balance Speed with Compliance?

All shifts in production focus on accelerating the design and production of the various products needed for hospitals, ambulance drivers and patients. However, this does not mean that regulatory oversight for product safety is suspended. Product approvals and process validation might be time-consuming and scrutinized efforts, but they are absolutely necessary to ensure the safety of patients and healthcare workers.

Even when approvals and validations are completed and production can commence, be realistic about your planned output. Meshing production know-how, engineering capabilities, and regulatory savvy takes time and is a challenge for big and small players alike. Start slow, refine the process and only ramp up production when you have stable and reliable production processes.

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