Page 11 - Logistics News - June/July 2021

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COVID-19 has exposed the reliance of companies on their supply chains and weaknesses in business
continuity management. What is the right way to deal with the next crisis? Thusang Mahlangu, CEO of
Allianz in South Africa, shares his thoughts.

dmittedly, it is not easy to take a positive No wonder that according to the respondents
view of the COVID-19 pandemic. However, of the Allianz Risk Barometer 2021, improving
Athe fact that increasingly more companies business continuity management is considered the
are coming to realise that globalisation needs to be most important measure to make supply chains
better managed and more resilient supply chains more transparent and resilient against incidents.
need to be built is a development that we as business This is followed by developing alternative and
insurers and risk consultants can only welcome – and additional supplier connections, investing in digital
one that we have been discussing with our brokers supply chains, intensifying supplier selection and,
and clients through risk dialogues for years. where possible, specifically creating inventory and
stockpiles for emergency production and delivery.
The extent to which supply chains came under
pressure during the pandemic is illustrated by These findings are also in line with other surveys,
the situation faced by automotive manufacturers for example, one conducted by FERMA among
earlier this year. Due to a lack of semiconductors, European risk managers last year: according to this
many carmakers were threatened with production survey, 46 percent of respondents expect to make
stoppages, delays in deliveries and measures such changes to their supply chains after a pandemic,
as short-time working. There were no short-term with 70 percent of them planning to find alternative
supply alternatives. Many manufacturers had to cut suppliers. In addition, a survey by Allianz company, L O GI S T I CS NEWS
production. This was a further blow to the already Euler Hermes, also found that a similar number of
hard-hit automotive industry. US and European companies are considering finding

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