created by freepik - www.freepik.com, Coronavirus, China, New Year, Supply Chain, Demand

24 Jan 2020

Corona Virus and the Global Supply Chain

Just before they could welcome the year of the rat, the Chinese are alarmed by the Corona Virus. Talk about a perfect storm for China. The city of Wuhan with a population of 11 million people is affected by this viral outbreak. China has quarantined the city with widespread travel bans in an effort to contain the spread of the disease.

The Chinese New Year is a major holiday and gift-giving season and typically considered a boost to the economy, with specific products whose consumption spikes up perhaps 1000% during Jan-Feb period. However, this year Corona Virus may be expunging this demand. Both the Hong-Kong and Shanghai stock exchanges suffered their big drop of the year this week.

In addition, travel will be substantially curtailed, affecting the demand for everything from airlines, consumer goods, metals and commodities as Wuhan is in the middle of China. A good portion of the annual demand for certain products occurs during the months of January and February...

created by freepik - www.freepik.com, Coronavirus, China, New Year, Supply Chain, Demand

This may be a jolt to an already weakening economy. A connected world has its own challenges.

Are you ready for the impact of the Great Wall on the global supply chain? How will you be affected?

Supply chain managers may need to sort through and do a risk assessment. We are trying to do a risk-assessment and readiness for some of our clients.

Are you prepared?

 

Read Part II

Read Part III

Leave a Reply