12 Key-Points to Consider for B2B Companies During the Pandemic

Did you know that Coronavirus, aka COVID-19, is actually called SARS-CoV-2 in the scientific world? Well, that is true: the SARS stands for Severe Acute Respiratory Syndrome, ‘Co’ stands for ‘Corona’ and, consequently ‘V’ - for Virus. What we have now is actually the second outbreak of the virus. The first-ever outbreak dates back to 2002 and was considered extinct, with only a few countries keeping some biosafety concerns. 

However, the behaviour of the virus today is different from the one in 2002 due to a wide range of reasons. Back then, a considerable number of countries in Asia were affected, and not as many cases in Europe and the Americas. In the first 9 months, the UK registered 4 diseased and no fatal outcomes. In the same time, the world registered a total of 8.1 thousand cases and a 9.6% case fatality ratio. To mention, that in the 2002-2004 period, there was no quarantine, no #stayhome, nor the unfortunate panic. Nevertheless, the global economic loss was estimated to US $40 billion in 2003 only.

Minimising the possible consequences is crucial now for any business - big or small. Combining research with experience, I’ve decided to come up with some advice that may prove valuable during the pandemic times.

COVID-19 making its appearance in the business field

Unfortunately, there is no such thing as an isolated crisis because of how networks operate in general. The current outbreak adheres to an uncertain chain of events regarding future developments both in the short and long run, with a heavy accent on propagation speed. To make things worse, not many business’ management and executive boards have the necessary experience to supervise such circumstances.

China’s share of global exports was close to 13% in 2018. If theoretically most manufacturing or delivery processes from there stop, mass disruption may occur in the supply chain networks. Not to mention the halt in manufacturing and logistics facilities diffused to other countries. Considering the possible further events the International Monetary Fund has decreased its global worth forecast, and several other institutions have issued their own estimates and scenarios for possible short and mid-term evolution of the outbreak and its direct impact on businesses.

Regardless of the current state of the affairs, you must keep a 360-degree view and comprehend that the virus is just an instantiator for many other possible hazards that might touch businesses. Here is a list of key actions that may safeguard against the challenging virus.

Use scenario analysis

Scenario analysis is commonly used by all businesses, especially international level ones that have their offices and stakeholders spread across regions. Therefore, it is exactly the moment in time to write down a risk aversion scenario and well-planned crisis management in case you don’t have it, or adjust it to the events. It is also in your best interest to stress test your findings, as weak points are exposed more than ever. Consider staying up-to-date with the direct and indirect factors impacting your activity. Because of the implied uncertainty and myriad of uncharted course of events regarding Coronavirus, well-thought-out plans will stand the test. Consequently, the outbreak speed should have already persuaded you about the severity of having accurate data at hand on which you might base your next actions.

Should the worst-case scenario come, remember that we have been through worse.

Intensify the supply chain scrutiny

Do not fall under the false impression that if your business partners and suppliers are not affected now, you are on the safe side. Take into consideration that their activity is part of another network chain, easily influenced by respective stakeholders. If a partner suspends supplying you the necessary raw materials, it can go two ways; either you will be goaded into more expensive purchases which will strain the end price, or decrease current output which in turn will strain client relationships. 

Keep your finger on the pulse

Now, more than never, outdated information will bite you hard. You can be one decision from everything falling apart, but you can’t afford to base your decision on poor company intelligence. The more sides involved, the more vital it is to be well-equipped to face any incoming incident locally or globally.

Company intelligence directories are the confidence booster. Maintained and dynamic data sources have never been more imperative during emergency planning.

Examine possibilities to get aid

Do not refuse the hand that may help you. There are special state, federal or government business incentives and loans designed for times like these. However, they are not without number. If by any chance your products are a priority to the harder times or to the recovery process, you should grab the financial benefits to keep the company and local economy going.

Meter your liquidity

Corporate finance class lecture 1, cash flow during emergencies can take quite the unpredictable turns. After you are done comprehending the state of parties involved, it would be wise to put a meter on money operations. If you are on the safe side for the foreseeable future - at least 3 months -, you can skip this piece of advice, but not completely. Otherwise, go out of your way to examine money-in and money-out, as some transactions might be understandably late. 

Checkup on your stocks

You win some you lose some, especially, in this time of dread. Some losing streaks for your business can be painful. Setbacks in delivery services mean that when the products make their way into your hand, the demand for them may be unpredictably different than at the ordering stage. In the worst-case scenario, your products may be stranded along the customs line be it by land, water or air, consequently, you won’t be able to reach them in the near future. No matter what situation has struck your business, these products, stranded or not, must be paid off. A thorough checkup on your current situation versus liabilities might be a key factor in surviving this crisis.

Be prepared for labour costs growth

Your company’s workforce might comprise not only local but outsourced talent. Therefore, you should consider informing yourself about how people are reacting to the pandemic regionally. If the local situation gets dire, you will be left with fewer skilled employees which may lead to a hike in the cost of labour. Even if outsourcing is not a concern to you, it might be to your business partners. Changes in the network as a whole can escalate from higher costs to having your sales cancelled, hence affect your company’s revenues.

Clear up policies and protocols

Human resources are what keeps your company going, yet they come with a few visible vulnerabilities, especially when it comes to mass outbreaks. They are not machines so exposure to biohazard is dangerous - there is no vaccine against COVID-19, and we only have our immune system. It is then the management’s responsibility to nail down protocols about how the personnel behaves should any of them be quarantined or situated in a quarantined area or are restricted from moving around. Moreover, if till now some of your workers displayed skills that made them difficult to replace, as far as the current situation stands their status should transition to irreplaceable. Hence the need to examine all these clauses as part of your crisis planning.

Note that during these times businesses are liable to legal implications in how they act. Rash decisions should better be avoided and do not forget to protect yourself legally, because it might your company’s operational activity.

Divide to stay stronger

If there is no way about achieving remote work then that means you should divide your staff into small-scale groups or work out isolated shifts. Offices imply human activities and interactions, therefore, sectioning your teams keep them and you safe, since if one team experiences health problems the others are not affected because of the safety precautions. Factories and warehouses equipped with special machines are a different story but follow the same idea. Instead of bringing in additional machinery for each team member, you can adhere to a shifts table and sanitary disinfection between them coupled with a well-functioning airing system.

It is ironic that sitting idle in your home is the correct way to deal with COVID-19, however, we cannot afford for everyone to do so or it will all fall apart.

Get insights from the biggest remote experiment to have happened

If before remote experiments were held under scrutiny by teams of scientists looking into the performance boost of working from home at the employee’s leisure versus the common 9-5 office practice, now almost everyone gets to experience it. Anyhow, there are several questions that better not be left unanswered. For example, protecting data privacy remotely might be a hassle as it is difficult to oversee the actions going on the other side. Another example is the balance between efficiency and commodity; the home environment is well-known to cause disruptive thinking and bring about lapses in focus.

In spite of the several points that must be addressed, among the biggest concerns right now is bandwidth. It is not only you who must have stress-resistant servers, but the employee’s ISP who in the grand network might provide less than desired. And as you are preoccupied with allotting the necessary bits, cyberattacks might stab in the back.

Keep communicating

If you abstain from communicating information to all the parties in your network employees included, you risk letting misinformation run amok. Therefore, it is imperative that you continue to use the appropriate channels to disseminate accurate and trusted information, consequently, reducing anxiety for all your stakeholders, especially business partners. This will only work in your favour to display the resiliency of your company in front of difficult times. 

Seek opportunities

Life does not follow the entirety of the zero-sum game principles, but one thing is clear that one man’s barrel bottom is another one’s shield, so you can stand to blossom when the field is withering away. By no means should you understand that, if you have the chance, you should rip-off others while they are suffering. Morality questions and malicious ingenuity aside, the current situation may be the right experiment grounds to test that one idea overshadowed by prior circumstances. If brilliance has not yet shone its light into your domain, perhaps look to establish yourself as a dependable asset in crisis times, which may come in handy going forward.

To sum up…

The scope of this article was to present a feasible list of actions that can help you bolster your strategic planning in the foreseeable future. Pandemics are awful, as well as the uncertainty it brings to people and businesses alike. The pandemic caught us unprepared, forcing primitive measures whilst we flatten out the spread curve. This isolation has compelled businessmen to look into alternative methods of managing all types of resources regarding company activity. What was once useless or stupid might prove crucial on how things go from here on.

Fast-tracking digital transformation, agile crisis response capability and accurate data are what keeps us afloat. Risk is just another name for opportunity, and now we have yet another chance to see whether that’s the rambling of a gambler or successful entrepreneur.

Based on B2B Survival Kit During the Pandemic: the 12 Key-Points to Consider