Successful measures for medium sized companies during the COVID-19 crisis
We are still firmly in the grip of Coronavirus, with no immididate end in sight. This pandemic introduces the German economy to the worst recession of the post war period. Entrepreneurs are facing challenges of compliance with official requirements to ensure their business is safe amidst the crisis. This helps to prepare for potential capacity failures and delivery bottlenecks, as well as temporary shutdowns. How does a company successfully navigate through this crisis? Unfortunately, there is no right way for every company. Various factors such as industry, company size, and corporate structure play a major role in this matter. After two months of the Covid-19 crisis, era-contact is reviewing the measures taken to give an overview of the international effects to date.
A brief glimpse of the company structure of era-contact
era-contact is a world market leader and manufacturer of electrical railway couplings and a system supplier of products and solutions in the field of cable assembly and vehicle wiring. The owner-managed company is a member of the aichele GROUP and has more than 650 employees worldwide at six different production sites in Germany, China, Tunisia, Turkey, and the United States.
Central crisis management
era-contact has a location in Suzhou China. The internationally active company and the management of their parent company was confronted early on with the consequences of the Covid-19 pandemic. A central Coronavirus crisis team was established immediately for the global group of companies. The management of each location reports regularly to the Coronavirus crisis team, thus an international status report from the other locations is provided. This overview of various requirements from different state governments helps to assess the impact for each location, so that necessary measures can be initiated immediately. This close cooperation between the members of the task force has proven its worth. As a result, bottlenecks at individual locations were quickly and easily handled. By maintaining production, we were able to fulfill our customer orders at all times. Bottlenecks in hygiene products were quickly distributed through exchange of excess inventory across various locations.
Preventative measures
An employee with a confirmed case of Coronavirus can cost a company dearly. In a worst case scenario, this could cause a department or even the entire company to be closed. The fear associated with the spread of Coronavirus amongst employees can cause massive production losses and delivery difficulties. This could lead to unsatisfied customers and a major financial impact to the company. Maintaining our delivery capabilities was essential in preserving our usual high standard of customer satisfaction. First and foremost, all hygiene and distancing rules of the Robert Koch Institute (RKI) were implemented within all era-contact’s worldwide companies.
By maintaining social distancing rules, we can prevent total failure of our departments. Half of office staff have been working from home since the beginning of the pandemic. The employees still present at the facilities perform their normal tasks but with a heightened attention to hygiene and social distancing rules. In areas of production, the problem was solved by introducing shift operations. The layout in the production facility adapted the 1.5 m spacing rule. Management and executives working from home are available as contact persons when needed. The previous canteen areas are closed at the present time, and employee breaks were staggered to avoid gatherings of people as much as possible.
Non-essential business trips have been limited or postponed. Instead of face-to-face meetings, video and teleconferencing are now being used. When distance rules cannot be met, the use of facemasks are required. All visitors to a facility have to wear a mask while on the premises. At the reception area, an acrylic protection wall provides additional safety for staff. Visitors are asked a serious of questions about their health and possible exposure to Coronavirus to reduce the spread and help identify where potential infection originated.
Production capacities and lockdowns
Fortunately, in terms of production capacity, era-contact was well positioned prior to the Covid-19 crisis. A few years ago, the company standardized its production processes using an internationally active operational excellence team (OPEX). In the event of temporary closure, relocation of production to other facilities has been implemented. Materials and finished goods can then be delivered from other locations to customers. Thanks to these standards and the switch to warehouse management, stocks can easily be moved within the company if problems arise with a specific location. The international supplier network of era-contact has grown in recent years and has proven its worth in the event of supply bottlenecks of individual suppliers during this crisis.
Communications in time of Coronavirus
The Covid-19 crisis unsettles us all. We do not know what the future will look like. It is important for us to be transparent and remain diligent in communicating information to strengthen the confidence of customers, employees, and business partners. One way of doing this is if delays are expected because of restrictions at one location the customer is informed immediately. All parties agree on whether products can be manufactured at one of the other locations.
The regular communication of information to employees takes place by means of notice boards, intranet, or their direct supervisors. We are in the same boat, trying to navigate a rough sea, and our future goal is to come together as one.
Conclusion (as of the end of May)
We are proud of the success of our strategy. Fortunately, there has not been a case of Covid-19 at any of our era-contact locations. Despite reoccurring disruptions in supply chains, we have managed to maintain 90% of our manufacturing capacity worldwide because of these implemented measures and our dedicated commitment to customer satisfaction.
We would like to thank our customers, employees, and business partners that rely on our commitment and support during these times for the trust they have placed in us.
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