The personal toll of the COVID-19 (coronavirus) outbreak is mounting, with nearly 100,000 reported cases and over 2,800 deaths. However the impact on businesses is also being felt. China, the world’s largest manufacturer and exporter, has been forced to shutter hundreds of factories and quarantine over 60 million people, severely limiting the supply of parts used in millions of products. New outbreaks in Italy, South Korea and other countries are forcing similar measures, exacerbating the shortages.
Stock markets are reacting to the virus with historic plunges, and economists warn the epidemics may trigger a global recession. For most companies, the impact of coronavirus will be felt deeper than the stock ticker, as companies warn of revenue shortfalls created by part shortages. Apple, which sources most of its electronics from China, warned its investors that a supply shortage will lead to a downturn in profits in the current quarter.
There is no vaccine for a company that will prevent supply chain disruption, however, there are ways a company may manage the symptoms and mitigate the risks caused by global events like the coronavirus.
A company with a full understanding of the locations of its suppliers and its product composition will be positioned to make informed business decisions to maintain supply chain continuity or mitigate the effects of disruption. For example, batteries made in a factory located in the Wuhan province (the epicenter for the coronavirus outbreak) would present a risk of supply disruption. With the right programs in place, companies sourcing from affected areas are able to identify risks earlier and make informed business decisions rapidly.
Supply chain data management is a set of processes that leverage technology for improved supply chain transparency. For a truly transparent view of the supply chain, a company must have reliable means to gather data and make it accessible to teams across the company, so they can rapidly respond to emergencies. Engaging suppliers and managing data submissions is integral to effective decision making and manual processes are unable to move at the pace required when global events threaten the supply chain.
The Assent Compliance Platform is the industry-leading supply chain data management software, enabling companies to effectively manage the large volumes of supply chain data necessary for quick decision making in times of global emergencies or regulatory changes. To learn more, contact our experts.
