insights - May 2020 - 3

That analogy is especially apt in the food supply chain
that has been significantly impacted by the spread of
the novel coronavirus, in the U.S. and throughout the
world. Using its expansive network and resources,
INTL FCStone Financial Inc. is collaborating with
companies in both the retail and foodservice industries
who have experienced dislocation in their respective
markets to move product from one sector - restaurants
and hotels that have been largely shut down in the
wake of stay-at-home orders and social distancing -
to food retailers, who are meeting surging demand
at brick-and-mortar stores deemed essential enough
to say open and via delivery services. Marrying the
supply chain between those that have too much and
too little can be done quickly and simultaneously, and
is pivotal to preventing a currently-bending supply
chain from breaking.
In other instances, a virtual pipe can be connected
to a new kind of outlet. For instance, while demand
for gasoline fuel may be low, those who supply corn
or other plant-based products for ethanol may have
a small but viable market in hand sanitizer products.
Creativity can and does emerge in challenging times.
The key to creatively - and successfully - rerouting
products in the supply chain is flexibility. Being able to
act quickly and nimbly allows a company to discover
and meet new opportunities that not only help them
sell into new markets but help consumers and others
in the supply chain at a time of great need.
This global pandemic, similar to other crises before
it, such as global conflicts, political instabilities and
natural calamities, underscores the importance
of diversification. A diverse supply chain and an
equally diverse portfolio provide backstops for a
host of potential crises and deliver peace of mind
for an organization that plans ahead and strategizes
Looking ahead to the lifting of restrictions when the
current COVID-19 outbreak is controlled, the same
agility and diversification will allow an organization to
move back to its previous customers when the current
crisis eases and the markets settle back into a new
normal. At that time, a company may have retained its
past customers while bringing on new ones.
Going forward into the longer-term future, there
are opportunities for new supply chains to be built,
with foresight into possible ramifications of another
large scale or international crisis with the potential to
cripple markets. This chain may include government
entities, food pantries, healthcare organizations and

FCStone_Ezine May 2020.indd 3

Fiscal Ingenuity and Opportunity
Beyond the substantial damage to human
health, the COVID-19 pandemic has had
a severe impact on the global economy,
from international financial markets to
meat processing facilities to independent
businesses in small towns. As supply chains
have ebbed and flowed through this crisis,
INTL FCStone has worked with customers
to free up working capital to help them work
with their end users.
There are opportunities in this market to do
that, with low prices in various commodity
sectors, including energy and fuel. In some
cases, groups are going out two years or
longer using the current low prices. A multilayered pricing program helps organizations
feel confident and comfortable with the
values they see.

Supply Chain Solutions
To steady their business at both times of turmoil
and normalcy, companies should prepare for the
future after this current outbreak by evaluating and
adapting their supply chains from both a practical and
financial standpoint. They can deploy technologies
such as blockchain and leverage robust databases to
tailor solutions to their unique operations and needs.
Organizations can create a comprehensive Integrated
Risk Management Program (IRMP) and use the
interactive Know-Risk information manager, both
offered exclusively by INTL FCStone Financial Inc.'s
FCM Division , to implement strategies that mitigate
and manage risks.
The IRMP identifies risks across all aspects of

5/7/2020 1:24:36 PM


insights - May 2020

Table of Contents for the Digital Edition of insights - May 2020

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