Responding to supply chain vulnerabilities from Coronavirus (COVID-19) outbreak

On 31 December 2019, a cluster of pneumonia outbreaks in Wuhan, China were reported to the World Health Organisation. Identified as a coronavirus (COVID-19), this current public health emergency has been expanding globally at a rapid rate and may soon be declared a pandemic.

Whilst the escalating medical and macro-economic implications of the virus spread continue to be reported, there are increasing concerns regarding the impact on global supply chains.

The Wuhan region at the centre of this pandemic is known for the manufacture of parts for technology and consumer-electronics products, apparel and textiles, as well as steel and alloys. Often these are highly customised and difficult to substitute and with transportation restricted (for example Wuhan’s Yangtze port only processing shipments deemed essential) this will have a significant impact on downstream manufacturing of goods across the globe.

As the effects of the virus continue to spread, larger and prolonged quarantined zones come into effect and downstream manufacturing constraints occur, there is an unprecedented business continuity impact on consumer goods and retail companies.

Have you assessed and reduced the impacts and risks of COVID-19 on your supply chain?

We have been working with our global experts to develop a rapid and pragmatic response process for clients.

There are six key steps we recommend you undertake:

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A rapid, pragmatic assessment of your supply chain could help your organisation avoid the costly brand reputational and financial impacts of supply failure. Our sourcing and supply chain toolkit is based on over 20 years working with leading organisations across Australia and Asia, delivering over >$2.0bn in sourcing value for our clients.