Coronavirus And The Remaking Of Global Supply Chains

Supply Chain (2)

Treat the impact on supply chains not as an aberration, but as an expected
occurrence in a world where political disruptions, health issues, technology
advances, and climate change are all happening at the same time.

 

Virtually every global company has indicated that the Coronavirus is hurting them by reducing the number of products or components they are making in China and dramatically reducing the size of the Chinese market.

Even the most powerful organizations are struggling. Apple, for example, cannot receive the quantities of iPhones and other products that the market needs. Tesla has had to put its business in China on hold. Since almost all manufacturing companies have a substantial portion of their supply chain based in China, either directly or through Tier 1 or Tier 2 suppliers, capacity has dried up because factories are closed or understaffed.

“What should we do?” is a common question we hear from supply chain leaders today. One of the first steps we recommend is to set up a “war room.” Almost all the companies we work with have a supply chain “war room” that is tasked with tracking and responding to the Coronavirus crisis.