As the coronavirus outbreak spreads rapidly, supply chain leaders must mitigate instant disruption and plan for future incidents.
The outbreak of the coronavirus is rippling through global manufacturing supply chains. In previous blog posts we have discussed the importance of having a backup supply chain and the current state of the global economy is exactly why. If you haven't already started working on an alternate sourcing and manufacturing strategy that excludes China, you should start immediately. As global leaders and health officials track the strain and make decisions regarding containment, supply chain leaders need to assess and plan for how the virus will impact global supply chains.
Panic is beginning to rise, suddenly all supply chains seem vulnerable because so many Chinese supply chains within supply chains within supply chains rely on each other for parts and raw materials. We are already starting to see businesses struggle to figure out how to get shipments out of China. Airline and air cargo operations that have been on restricted holiday schedules are now completely suspended. Many factories and logistics warehouses are on extended leave trying to outlast this critical virus period. How long before all factories and global logistics are running smoothly again?
If you haven't already, it is now time to plan and initiate your Plan B for disasters like the coronavirus and trade wars. At RCI, we have been touting the need for a backup plan for our customers and potential customer's logistics supply chains for many years. The coronavirus should be a huge wake up call for supply chain professionals to develop alternate sourcing and manufacturing plans. While natural disasters and events such as the coronavirus cannot be predicted, you can develop alternate plans in case they do happen.
The time for a Plan B has never been more important, the time for Plan B is now.