Coronavirus, Economy, Supply Chain, Trade wars, Wuhan, China, Image by Gerd Altmann Pixabay

20 Feb 2020

Corona Virus and the Global Supply Chain III

The virus may be under control but the effects will start to show in the global supplychain for a few months. - a good portion of China is in shut down mode.

Apple computer warned it will miss its revenue and profit estimates. The company is burning through its inventory and may not have a sufficient backup production alternative! It may have to dial out the Chinese demand for the first two quarters. So this will affect the suppliers on its ecosystem as well.

This calls into question the risk assessment capabilities in their demandplanning process!

The thing we have to worry about is a potential shortage of Chinese made products in the West - potentials hyperinflation of sorts may be lurking.

We will get to know the influence of China in our everyday life...

In hindsight the tradewar may be a blessing in disguise - this may be a saving grace that may insulate us and mitigate the coronavirus effect!!

 

Read Part I

Read Part II

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