Maintaining global supply chains amidst coronavirus pandemic
“A month ago it was more around how do we restart after the virus and when will China come back online. A week ago, it shifted into some industries and product lines having quite strong demand while others were pushing for either complete or partial slowdown. Today what we’re seeing is a race to produce before some form of shut down and moving from fine-tuning [strategies of] ‘just in time’ (JIT) to “just in case,’ (JIC)” Stepanek says.
Disruption of Global Supply Chains:Strategies to Mitigate Risk Amidst Uncertainty
Rising labor costs, rising tariffs, and now, coronavirus. The pressure for strategic moves is intense. Leaders are asking: What will be the long-term impact of the coronavirus? Is a move beyond China practical? Paul Stepanek, CMD and
Samantha Metcalf, CLA speak to these questions and more in this webinar.
Coronavirus Could Hit Construction Supply Chains Next
“It’s very patchy, but I would say the silver lining, is that things are moving. Customs is open, trucks can make pickups and deliveries,” Stepanek said. “What we had forecasted to ship in February, there is no way we are going to be able to hit that volume. The factories simply were not open."
Hyundai bet big on China. Now coronavirus is twisting its supply chain
“South Korean automakers are heavy on just-in-time delivery due to close geographic proximity to China. Other automakers have to carry more safety stock,” said Paul Stepanek. “Therefore, when there is a crunch on supply chains, the South Korean automakers feel it faster.”
Automakers get 'imaginative' with coronavirus parts disruptions
"China production is moving up the value chain with what is made there staying there," said Paul Stepanek. "Global parts production could return to other parts of Southeast Asia like India, Malaysia, Thailand and Vietnam."
Auto exec fled China after coronavirus outbreak and still can't return home
"We really, really, really want to go home, but we’re not sure when it’ll be a good time to go back," said Andrew Parrish, a general manager for CMD. "It’s kind of like being a refugee."