[{"command":"openDialog","selector":"#drupal-modal","settings":null,"data":"\u003Cdiv id=\u0022republish_modal_form\u0022\u003E\u003Cform class=\u0022modal-form-example-modal-form ecl-form\u0022 data-drupal-selector=\u0022modal-form-example-modal-form\u0022 action=\u0022\/en\/article\/modal\/7372\u0022 method=\u0022post\u0022 id=\u0022modal-form-example-modal-form\u0022 accept-charset=\u0022UTF-8\u0022\u003E\u003Cp\u003EHorizon articles can be republished for free under the Creative Commons Attribution 4.0 International (CC BY 4.0) licence.\u003C\/p\u003E\n \u003Cp\u003EYou must give appropriate credit. We ask you to do this by:\u003Cbr \/\u003E\n 1) Using the original journalist\u0027s byline\u003Cbr \/\u003E\n 2) Linking back to our original story\u003Cbr \/\u003E\n 3) Using the following text in the footer: This article was originally published in \u003Ca href=\u0027#\u0027\u003EHorizon, the EU Research and Innovation magazine\u003C\/a\u003E\u003C\/p\u003E\n \u003Cp\u003ESee our full republication guidelines \u003Ca href=\u0027\/horizon-magazine\/republish-our-stories\u0027\u003Ehere\u003C\/a\u003E\u003C\/p\u003E\n \u003Cp\u003EHTML for this article, including the attribution and page view counter, is below:\u003C\/p\u003E\u003Cdiv class=\u0022js-form-item form-item js-form-type-textarea form-item-body-content js-form-item-body-content ecl-form-group ecl-form-group--text-area form-no-label ecl-u-mv-m\u0022\u003E\n \n\u003Cdiv\u003E\n \u003Ctextarea data-drupal-selector=\u0022edit-body-content\u0022 aria-describedby=\u0022edit-body-content--description\u0022 id=\u0022edit-body-content\u0022 name=\u0022body_content\u0022 rows=\u00225\u0022 cols=\u002260\u0022 class=\u0022form-textarea ecl-text-area\u0022\u003E\u003Ch2\u003EHow to repurpose a factory in a crisis\u003C\/h2\u003E\u003Cp\u003E\u003Ca href=\u0022https:\/\/www.who.int\/news\/item\/03-03-2020-shortage-of-personal-protective-equipment-endangering-health-workers-worldwide\u0022 target=\u0022_blank\u0022 rel=\u0022noopener noreferrer\u0022\u003ELack of PPE and ventilators at the start of the coronavirus pandemic\u003C\/a\u003E occurred partly because few companies knew where their supplies came from or the risks they faced.\u003C\/p\u003E\u003Cp\u003EChina accounted for \u003Ca href=\u0022https:\/\/oxfordbusinessgroup.com\/news\/industry-and-manufacturing-year-review-2020\u0022 target=\u0022_blank\u0022 rel=\u0022noopener noreferrer\u0022\u003E28% of manufacturing output\u003C\/a\u003E before the pandemic. When China\u2019s factories and borders closed, and transport routes were disrupted, the impact was global. At the same time, medical supply companies faced a rapid surge in demand.\u003C\/p\u003E\u003Cp\u003EEurope\u2019s factories could not entirely make up for the shortfall, although some countries, including Italy and the Netherlands, turned to local networks of \u003Ca href=\u0022https:\/\/www.bbc.com\/news\/technology-51911070\u0022 target=\u0022_blank\u0022 rel=\u0022noopener noreferrer\u0022\u003E3D printing companies to fill supply gaps\u003C\/a\u003E at the start of the pandemic.\u003C\/p\u003E\u003Cp\u003EOne vital way to keep supply chains working in a crisis is to repurpose local factories so they can fill gaps in supplies when demand soars or transport routes are disrupted, experts say.\u003C\/p\u003E\u003Cp\u003E\u2018Where we have existing (local 3D printing) networks it\u2019s easier to start production, especially for less complex devices like face masks and glasses,\u2019 said Angelo Marguglio, coordinator of the \u003Ca href=\u0022https:\/\/cordis.europa.eu\/project\/id\/101016175\u0022 target=\u0022_blank\u0022 rel=\u0022noopener noreferrer\u0022\u003EEur3ka\u003C\/a\u003E project, which was established in the wake of the pandemic to help Europe\u2019s medical suppliers become more resilient to the next crisis.\u003C\/p\u003E\u003Cp\u003EThe Eur3ka project wants to help small and medium-sized companies to be primed to repurpose their machinery to make a new product within 48 hours if another crisis hits.\u003C\/p\u003E\u003Cp\u003E\u003Cstrong\u003ECertification\u003C\/strong\u003E\u003C\/p\u003E\u003Cp\u003EOne key challenge is certification. Even if a factory can rapidly repurpose its manufacturing processes, it cannot supply medical goods without authorisation from a medical authority. \u2018You have to certify your machinery, your production process, your workforce skills, as well as the final product,\u2019 said Marguglio, who is head of the Smart Industry and Agrifood R\u0026amp;D Unit at \u003Ca href=\u0022https:\/\/www.eng.it\/en\u0022 target=\u0022_blank\u0022 rel=\u0022noopener noreferrer\u0022\u003EEngineering Group\u003C\/a\u003E, an international company working on digital transformation.\u003C\/p\u003E\u003Cp\u003EEur3ka is working with medical authorising bodies to establish a pre-certification scheme for businesses, which can be rapidly turned into full certification when needed. \u2018It\u2019s a sort of pre-cooked certification process, so you can start production quickly,\u2019 he said.\u003C\/p\u003E\u003Cp\u003ETo obtain that pre-certification, companies need information on what changes to machinery, processes and staff skills are needed. And that requires the trust and collaboration of the company holding the patent for the product and process.\u003C\/p\u003E\u003Cp\u003E\u2018I, as the product owner, will only give you the licence to start producing my product if I trust you to use this IP-protected file or process within the terms we agreed - so only during the pandemic for example.\u2019\u003C\/p\u003E\u003Cp\u003ESince the start of the pandemic, owners of some patented products and processes have established their own secure networks with manufacturers, on a one-to-one basis. \u2018It took some time, but it worked,\u2019 said Marguglio.\u003C\/p\u003E\u003Cp\u003E\u2018The question is: How can we ease this collaboration and speed up this phase?\u2019 he added.\u003C\/p\u003E\u003Cp\u003EOne solution Eur3ka is working on is developing a community - the \u003Ca href=\u0022https:\/\/digitalfactoryalliance.eu\/\u0022 target=\u0022_blank\u0022 rel=\u0022noopener noreferrer\u0022\u003EDigital Factory Alliance\u003C\/a\u003E - that connects existing networks of healthcare and government agencies, ICT companies, manufacturing companies, and bodies like the World Economic Forum.\u003C\/p\u003E\u003Cp\u003E\u2018It is not just a technological push that can solve the issue, it is not only a political push that can solve the issue. We need a multi-actor approach,\u2019 said Marguglio.\u003C\/p\u003E\u003Cp\u003E\u003Cblockquote class=\u0022tw-text-center tw-text-blue tw-font-bold tw-text-2xl lg:tw-w-1\/2 tw-border-2 tw-border-blue tw-p-12 tw-my-8 lg:tw-m-12 lg:tw--ml-16 tw-float-left\u0022\u003E\n \u003Cspan class=\u0022tw-text-5xl tw-rotate-180\u0022\u003E\u201c\u003C\/span\u003E\n \u003Cp class=\u0022tw-font-serif tw-italic\u0022\u003E\u2018It is not just a technological push that can solve the issue, it is not only a political push that can solve the issue. We need a multi-actor approach.\u2019\u003C\/p\u003E\n \u003Cfooter\u003E\n \u003Ccite class=\u0022tw-not-italic tw-font-normal tw-text-sm tw-text-black\u0022\u003EAngelo Marguglio, Head of Smart Industry and Agrifood R\u0026amp;D Unit, Engineering Group\u003C\/cite\u003E\n \u003C\/footer\u003E\n\u003C\/blockquote\u003E\n\u003C\/p\u003E\u003Cp\u003E\u003Cstrong\u003ERisk\u003C\/strong\u003E\u003C\/p\u003E\u003Cp\u003EAnother important change is to ensure supply chains are designed using a risk-based approach, says Marguglio.\u003C\/p\u003E\u003Cp\u003E\u2018You should select your suppliers not only on the basis of financial cost, but also ask: \u201cWhat are the risks of relying on one single supplier or country?\u201d \u2026 (and) build, design and operate the supply chain in a more flexible way,\u2019 he said.\u003C\/p\u003E\u003Cp\u003EAlthough another pandemic could occur at any time, the next crisis is more likely to be political, he says. \u2018In South America today, for example in Brazil, you have a lot of instability that could explode at any moment and in any direction.\u2019\u003C\/p\u003E\u003Cp\u003EEven a very localised crisis can impact suppliers. For example, Hong Kong\u2019s anti-government \u003Ca href=\u0022https:\/\/www.supplychaindive.com\/news\/5-questions-hong-kong-protests-supply-chains\/560850\/\u0022 target=\u0022_blank\u0022 rel=\u0022noopener noreferrer\u0022\u003Eprotests\u003C\/a\u003E in 2019 resulted in the temporary closure of the \u003Ca href=\u0022https:\/\/aci.aero\/news\/2020\/10\/08\/acis-world-airport-traffic-report-brings-home-how-far-airport-traffic-has-fallen\/\u0022 target=\u0022_blank\u0022 rel=\u0022noopener noreferrer\u0022\u003Eworld\u2019s busiest airport\u003C\/a\u003E for air cargo.\u003C\/p\u003E\u003Cp\u003EOther risks include political decisions to restrict exports, for example when \u003Ca href=\u0022https:\/\/www.reuters.com\/article\/idUSL4N2CO19N\u0022 target=\u0022_blank\u0022 rel=\u0022noopener noreferrer\u0022\u003EIndia\u003C\/a\u003E banned the export of paracetamol in March 2020 to protect its domestic supplies.\u003C\/p\u003E\u003Cp\u003EBut discovering the risks inherent in a particular supply chain takes a lot of work, says Saskia Sardesai, an expert on medical supply chains and senior scientist at Germany\u2019s Fraunhofer Institute for Material Flow and Logistics.\u003C\/p\u003E\u003Cp\u003EOne supply chain could, for example, have 70 suppliers in it dotted across the globe and each supplier may only exchange production data with the next company in the supply chain, says Sardesai.\u003C\/p\u003E\u003Cp\u003E\u2018Even the automotive industry - which is one of the most sophisticated in terms of logistics \u2013 struggled during the pandemic because they did not know who all their suppliers were or where they were based, she said.\u003C\/p\u003E\u003Cp\u003EShe is working on \u003Ca href=\u0022https:\/\/cordis.europa.eu\/project\/id\/101016070\u0022 target=\u0022_blank\u0022 rel=\u0022noopener noreferrer\u0022\u003ECO-VERSATILE\u003C\/a\u003E, a project developing tools to help European medical suppliers and other businesses prepare for the next crisis.\u003C\/p\u003E\u003Cp\u003EThe CO-VERSATILE project is developing an online portal \u2013 called Digital Technopole \u2013 which offers European manufacturers advice and simulation tools on how to adapt their factories and supply chains in a crisis.\u003C\/p\u003E\u003Cp\u003E\u2018We look at who can provide raw materials, how you set up the supply chain, and (provide) instructions on how to set up the production line,\u2019 said Sardesai.\u003C\/p\u003E\u003Cp\u003E\u003Cstrong\u003EDigitalisation\u003C\/strong\u003E\u003C\/p\u003E\u003Cp\u003EMany supply chains cannot quickly respond to sudden changes in demand because they take weeks to order and transform the raw material into the finished product.\u003C\/p\u003E\u003Cp\u003EDigitalising supply chain information is vital to help companies act quickly in a crisis, she says. Small and medium sized companies usually send out orders by email or fax, and enter information about supplies and suppliers manually into a company\u2019s database, says Sardesai.\u003C\/p\u003E\u003Cp\u003ECompanies cannot adapt quickly unless they collaborate closely with their suppliers, know the issues they face, and can identify the main bottlenecks.\u003C\/p\u003E\u003Cp\u003E\u2018Once you know that, you can act,\u2019 said Sardesai.\u003C\/p\u003E\u003Cp\u003E\u003Cem\u003EThe research in this article was funded by the EU. If you liked this article, please consider sharing it on social media.\u003C\/em\u003E\u003C\/p\u003E\u003C\/textarea\u003E\n\u003C\/div\u003E\n\n \u003Cdiv id=\u0022edit-body-content--description\u0022 class=\u0022ecl-help-block description\u0022\u003E\n Please copy the above code and embed it onto your website to republish.\n \u003C\/div\u003E\n \u003C\/div\u003E\n\u003Cinput autocomplete=\u0022off\u0022 data-drupal-selector=\u0022form-7zxex-lhcw1uut2s8m7b06oyswt-haka2fbud444-k4\u0022 type=\u0022hidden\u0022 name=\u0022form_build_id\u0022 value=\u0022form-7zXEx-lhcw1UUT2S8m7b06OYswt_HaKA2FBud444-k4\u0022 \/\u003E\n\u003Cinput data-drupal-selector=\u0022edit-modal-form-example-modal-form\u0022 type=\u0022hidden\u0022 name=\u0022form_id\u0022 value=\u0022modal_form_example_modal_form\u0022 \/\u003E\n\u003C\/form\u003E\n\u003C\/div\u003E","dialogOptions":{"width":"800","modal":true,"title":"Republish this content"}}]