Australian Newsagency Blog

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Coronavirus to impact the supply chain

Mark Fletcher
February 4th, 2020 · No Comments

Few suppliers at the Melbourne Gift Fair talked about the impact on the supply chain of the Coronavirus when, in reality, the impact is already being felt with factories in China remaining closed for two weeks longer than at this New Year time of the year.

There is talk that the Chinese government may extend the restart following Chinese New Year for a third time. The impact is not only  the finished goods factories but also those making components for them.

Once the factories do start, there will be logistical challenges with freight capacity finite.

Beyond the factory closures, there will be other impacts as governments deal with broader aspects of the virus. At borders, for example, there is discussion of new checks – based on what gift and related importers I deal with are saying.

I am also aware that major tech companies have announced hardware supply delays as a result of the impact of the virus on production plans.

Kudos to suppliers being transparent about the impact. Shame on any talking preorders and prepayments (or deposits) for product that will be impacted.

Retailers relying on locally made products will be less impacted.

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Category: Social responsibility

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