How Coronavirus Has Disrupted the Global Supply Chain Management
The Coronavirus (COVID-19) that originally kept China an epidemic- hostage in the first months of 2020, has eventually spread across the globe. With it, comes great costs that are being paid – for the people who got affected by it and the people around them, for public life as a whole and for every business that works with China in one way or another, and increasingly with other countries as well.
There will be a profound impact on supply chains across industries, in China and outside.
In the first months of 2020, Coronavirus cases were primarily found in China and consecutively the virus spreads across continents on a large scale.
In the present scenario, the number of Corona cases have jumped up rapidly throughout the world along with China.
Covid-19 is also creating a big impact on the retail and the e-commerce world, effecting badly in Global Supply chain systems.
Renowned large scale product companies are experiencing big trouble since most of the manufacturing units are located in China. Many brands are seriously concerned about product availability and supply products to customers without major hold up.
As per the ISM survey, This Corona outbreak is the reason for a 75% supply chain disruption and as a result, US companies will be facing some revenue losses. Here are some alarming stats for us.
According to Bloomberg, big logistics giants like Amazon, ups and FedEx already announced there might be some delivery delay due to the corona outbreak in certain areas.
There are a few suggested guides that can help us to improve the supply chain impact on eCommerce:
- Manage a close relation with suppliers to maintain the secure supply chain and stay aware of the situation of local staff and suppliers.
- Go for the Bulk ordering and try to maintain your inventory with good stocks. After the Chinese new year, it was expected to speed up the manufacturing process in several factories in china. But due to the corona outbreak, most of the factories are shut down and it is not clear when it will be resolved.
- Stay alert of the sales rate of products in your e-commerce. Follow the trends and readjust the product values and social promotion in this situation. we should have strong control over product inventory.
- Be proactive with your customer support team. Nowadays customers are highly worried about the overseas and outsourced parcels. Stay connected with your customers, try to listen to their concerns and give them proper assurance and safety guidelines over spreading COVID-19.
Considering the above guidelines, your immediate action should be risk assessment and planning. You should plan weekly monitoring on suppliers, potential customers and organization employees, understanding Market requirements, product cost for future scenarios.
” You never let a serious crisis go to waste. And what I mean by that it’s an opportunity to do things you think you could not do before.” Rahm Emanuel
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