As the global pandemic has caused disruption in the global supply chain, companies should manage key suppliers, secure multiple and alternative sources and establish regional supply chains, experts said in a symposium held Thursday.

The public-private joint video symposium in response to the global supply chain crisis was held jointly by the Industry Ministry and the Korean Production & Operations Management Society. The seminar aimed to find out the impact of the pandemic-led crisis on industries and to discuss strategies to rebuild the global value chain in the post-coronavirus era.

“The lockdown of countries due to COVID-19 has caused a serious crisis in the global supply chain of manufacturing companies,” said Hur Dae-sik, a chairman of the KPOMS and professor at Yonsei University.

As a countermeasure at the corporate level, companies should directly manage key suppliers, secure multiple and alternative supply sources and establish local supply chains.

Kwon Il-myong, vice president at consulting firm A.T. Kearney, said, “The second spread of COVID-19 is worrying in the third quarter based on data from US consulting firms. It is necessary to restructure the way companies operate value chains.”

As to the areas of restructuring, he specified raw material suppliers, demand sources and domestic and foreign production bases. A strategy to relocate domestic and international factory locations is also necessary, he said.

“The coronavirus crisis has a far greater impact on the global economy than the impact of the 2008 financial crisis,” said Lee Joon, a chief of Korea Institute for Industrial Economics & Trade’s material industry division.

“Countries and companies that proactively respond to changes in GVC will benefit from the economic recovery and corporate growth after the pandemic.”

Lee Dong-hun, executive vice president of Hyundai Motor, said there was a need to improve the way materials are procured, referring to a case in which domestic car plants were shut down due to a disruption in the supply and demand of auto parts early this year.  

By Shin Ji-hye (shinjh@heraldcorp.com)