Response Tips For Dealing with Coronavirus Supply Chain Disruptions

As the coronavirus gains evermore traction, businesses are experiencing significant disruption and restrictions within their supply chains, and the economic impact of such restrictions are likely to continue beyond the resolution of the current health crisis, as end-to-end manufacturing and distribution processes may require a complete restart.

To help ensure organizations maintain continuity and resilience amid the coronavirus tumult, BSI supply chain experts are advising businesses take an immediate response to protect their workers and commercial interests.

“It is vital that businesses across the globe prepare for the commercial repercussions that the coronavirus outbreak may bring,” says Thorsten Querfurt, Group Consulting Services Director at BSI. “From staff communication to business impact analysis, operational practices will only function if organizations plan swiftly and thoroughly. While a variety of sectors have already been affected by this developing health emergency, there are steps that organizations can take to lessen its impact.”

What You Need to Know

• Officials have attributed an outbreak of respiratory illness in Wuhan, China, to the 2019 Novel Coronavirus (nCoV), with cases spreading globally.
• To date, there are over 9,900 confirmed cases globally and 213 deaths attributed to the virus.
• In reaction to the virus, the government of China has effectively quarantined Wuhan as well as at least 18 other cities, putting travel restrictions in place that are impacting an estimated 56 million people.
• Wuhan's location on the Yangtze River makes it a key transport hub for the movement of goods from China's interior to the coast, as well as other “north-south commercial traffic.” Additionally, the city acts as a significant center for pan-Asian supply chains pertaining to electronics, pharmaceuticals, and automobiles.
• Airports worldwide are implementing travel restrictions or canceling flights to mainland China. A growing number of airports are conducting health screenings on arrivals from Wuhan or greater China. The U.S. Centers for Disease Control and several multinational companies are recommending against any non-essential travel to China due to this outbreak.
• Finally, companies should be aware that enhanced security screenings for coronavirus at any port-of-entry, including seaports, airports, and border crossings, may result in delays for cargo, especially in high-volume areas where container traffic may backlog.

SC
MR