How the Coronavirus is Causing Supply Chain Disruptions Across the Globe
The Coronavirus is causing widespread supply chain disruptions across the globe.
Globalization, that catchy phrase that touches on every facet of our interactions, is under threat. More so, as the world grapples with the ramifications of COVID-19 or, more commonly, the coronavirus.
While the rapid coronavirus spread is causing issues, experts are already signaling that this might be a decisive moment for a vulnerable supply chain. Accordingly, supply chain disruption raises concerns about the sensibility and cost implications of shipping electronic components from region to region.
But, what do business leaders in the manufacturing field need to know?
Effect of Coronavirus on the Global Supply Chain
Due to the interlinked nature of the manufacturing industry, many firms are experiencing the ripple effect of the coronavirus. Notably, the outbreak is disrupting economies, trade, and supply chains worldwide.
Undoubtedly, China is an international electronic component manufacturing powerhouse. Accordingly, it’s at the heart of almost every manufacturing supply chain. With the epidemic’s scourge, the country’s economy is significantly in lockdown mode.
As the crisis escalates, manufacturing firms, regardless of size, are, therefore, struggling with supply chain issues—with these disruptions reaching across the globe. Even so, a prudent electronic components distributor with a firm grasp of the nature of your business can yet help you find these parts for your manufacturing processes.
For a savvy company, this means you don’t have to expose yourself to losses in revenue.
Overcoming the Coronavirus Challenge—What Manufacturing Firms Can Do
First, note that the knock-on effects of the coronavirus present a test for tech’s supply chain resilience—highlighting the weaknesses of global supply chains. So, what can your manufacturing business do to address the challenge of restrictive sanctions that are already in place?
Building processes that eliminate disruptions is an insurmountable task. Yet, if you partner with a proficient electronic components distributor, you get the necessary support—reducing the supply chain disruption to a manageable level that guarantees your firm excellent performance and profitability.
Operational and financial risks—on boarding of third-party electronic components distributors should consider unique challenges presented by the geographical regions these companies operate in. Hence, periodic monitoring and updating/reporting of the current risks through the appropriate channels is critical to maintaining a healthy working relationship.
A manufacturing firm should pinpoint electronic components critical to their processes and seek to establish a reliable link with a reputable electronic parts distributor.
Lastly, an enterprise should consider proactive sourcing of electronic components when the ecosystem is vibrant and not wait until disruptions wreck the market.
Thus far, the current coronavirus outbreak is on course to surpass the SARS epidemic that affected China in 2002-03. For that reason, it could prove to be a significant challenge for the global supply chain.
Expert’s project that if the coronavirus crisis levels’ off before the second quarter comes to an end, then, its adverse impact on global economies and supply chains may well be minimal.
Conversely, in the unfortunate event the outbreak lasts past the fourth quarter, industry leaders predict its undesired effects will be more severe.
In a nutshell, the electronic parts market and supply chain are currently experiencing turbulent conditions. Manufacturing firms that utilize these components, therefore, face the risk of shortages/limited supply.
How We Can Help
As a responsive partner, we understand our customers’ needs and expectations. Apart from long lead times, obsolescence and allocation are other elements that can result in supply chain disruptions. In the long run, sourcing these electronic parts can be a challenge for any manufacturer or procurement team.