With U.S. jobless claims at an all-time high, hospitals in large cities becoming overwhelmed with COVID-19 cases and supply chains in disarray, a natural human response is to panic. We’re all feeling a mix of uncertainty and fear, two emotions that can lead to rash decisions in our personal lives and in business.
Some measure of economic help is on the way in the U.S., as Congress is expected to pass a sweeping $2 trillion stimulus package. The bill provides workers with some financial relief and a bridge loan for businesses as they struggle to regain their footing. Only time and virus-spread mitigation will tell how effective this measure is in turning around a flagging economy.
Among B2B companies, the automotive and high-tech industries were hit first and are harbingers of things to come in other sectors. The “Big Three” American automakers have temporarily shut down all factories in the U.S. and more industries are now feeling the sting of supply chain disruptions as March trudges on.
Constant communication with our customers has shown us that the impacts of this pandemic vary depending on the sector. Some industries have seen a collapse in demand, while others are having issues keeping up with demand spikes. Supply is uncertain in many areas. One thing is for sure: everyone is feeling it and facing major change.
“When considering huge, impactful, yet sudden changes, we need to keep in mind: There are lots of other parties – competitors, suppliers, customers – involved when we make decisions, and nothing happens in a vacuum,” Kevin Mitchell, President of Professional Pricing Society, told Zilliant. “We have to consider how other parties will act, take into account the long-term causes and effects, and avoid short-term overreactions. Change requires consideration and thought, but not panic.”
This crisis reminds us that no company is an island. Open communication and collaboration must be a priority up and down the supply chain.
To that end, we released a whitepaper this week that diagnoses the wide scope of supply and demand shocks B2B companies are grappling with and how a measured, data-led response will chart the way forward.