UPDATE Coronavirus Impact on the Supply Chain 4

UPDATE: Coronavirus Impact on Supply Chain

The scope of the virus outbreak is beginning to be felt in North America as more China factory’s begin to open, albeit staggered, with a limited workforce permitted to return to work, and production slowly ramping up. Carrier limited schedule availability is still a concern, again, with its upcoming effects heavily dependent on production output.

As production begins and shipping demands increase, assure your supply chain is ready to face the new environment during this restricted shipping environment.

We want to re-emphasize the importance of a regular communication with all suppliers, not only China based. China is a significant supplier of production materials globally and therefore the probability of production delays is imminent regardless of their geolocation.

In a best effort to minimize supply chain disruption, all clients are urged once again to review their upcoming shipments. Be sure to consult our matrix on the current conditions of logistic services to assist in your decision making process. View the matrix here.

The following criteria is critical to your supply chain and must be evaluated:

• Review all your manufacturing, In DC dates and client cargo delivery deadlines
• Verify supplier’s employee return rate with expected revised cargo Ex-factory date
• Plan for mode of transport change
• Build into your planning future expected delays for congestion at sea ports, airports, China customs clearance in relation to the revised cargo Ex-factory date.

Contact your OEC/CGL representative as soon as possible with your upcoming shipment information and they will contact our overseas offices along with your suppliers and guide you through the available options to expedite your cargo.