COVID-19 has hit global supply chains hard. In particular, the mining sector has faced turbulence as new challenges emerged associated with social distancing measures and supplier issues.
You can secure your mining supply chain during COVID-19 for future crises. Here’s how.
The problems associated with mining supply chains during COVID-19
There are a variety of factors that have caused supply chains to slow during COVID-19. Some include:
- Slowed/stopped imports and exports
Some countries have reduced the import and export of goods and services due to COVID-19 risks. This especially applies to goods imported from high-risk countries.
- Reduced output from factories due to COVID-19 social distancing and reduced employee presence
Due to social distancing and a reduced workforce, many factories are facing reduced output. In those countries hit hardest by COVID-19, some factories have closed altogether due to isolation and an inability to work.
- Border issues
Many countries have chosen to close their borders to international and, in some cases, national travel. This means that the movement of goods through borders is largely reduced. It also means that some workers who are necessary to certain mining operations may be stranded overseas or unable to assist.
How we can mitigate the loss
1. Prepare for a crisis
Companies need to formulate a supply chain plan that prepares for potential crisis. This means that, in times of difficulty, the damage is mitigated and controlled. There will instead be a series of procedures that the company follows to continue safe and consistent business output.
2. Map the supply chain and implement digital systems
It’s integral that companies understand their supply chains. Mapping your supply chain means understanding who your suppliers are, the potential risks, and increasing visibility and transparency over the entire supply chain.
Part of mapping the supply chain may include implementing digital systems. Technologies such as blockchain, AI and IoT can massively ease the burden of mapping and tracking supply chains.
Blockhead Technologies’ platform STAMP Supply, for example, tracks the supply chain beginning-to-end and is backed by blockchain technology.
There are a variety of options out there, and it’s important you find the best one for your company.
3. Increase communication between supply chain suppliers and other vendors
Because of the extensive nature of supply chains, many mining companies may not have easy communication with their suppliers. When there’s a crisis, this lack of communication can be incredibly damaging.
It is absolutely vital that mining companies increase communication between them and their suppliers. This will also create a professional relationship that provides benefits in the long term.
Ultimately, the best approach to protect mining supply chains in times of crisis is by enabling transparency, traceability, and communication. This allows mining companies to continue production and be aware of supply chain risks.
Blockhead Technologies has created STAMP Supply, a blockchain-backed platform that tracks your data across the entire supply chain. You can find out more about STAMP Supply here or contact us here for more information or a demo.