Managing the Impact of COVID-19 for Your Supply Chain

By The Pro QC Quality Assurance Team

It is undoubtedly an unprecedented time in the history of the world – so of course our globally oriented supply chain is not entirely unaffected. However, it’s not all doom and gloom. We’re here with some tips and tricks on how to handle the situation for your business, and what you can do next.

Supply Chain

While borders have been closing in something of a domino effect, COVID-19 has set off a crisis for many businesses who rely on open borders and global trade routes for their supply chain to remain at optimal functionality. The challenges continue to arise as the pandemic spreads across countries, closing businesses.

However, this cannot go on forever – and we see this as a time to stay calm and prepare your business for the post-virus upswing. Businesses need to consider what their opportunity is going forward, with now being the time to trim any unnecessary fat while also investing in resource allocation and focusing on internal operational excellence. Pro QC has been working with businesses on tailoring supplier management programs to their individual needs – creating a relevant set of protocols to manage supply chain portfolios and service providers on both performances as well as compliance levels.

Beyond this, we will likely see post-virus business get back on track in waves: first China’s supply side will get back on track (we are seeing it start to open back up now), followed by other countries and regions based on the effectiveness of their present lockdowns and curtailing the spread of the virus.

Here’s what Pro QC’s people on-the-ground around the world have to report back this week – though bear in mind that situations around the world are rapidly evolving. Get in touch with us to find out what the situation is in your supply chain impacted areas, and how we can help.

China

According to China News, the return to key projects across China has risen over 89%, as the country gradually opens back up and returns to work. While certain cities, including Wuhan, remain slightly less open – transportation, courier services, and restaurants are among the industries getting back on track as life begins to return to normal.

However, as manufacturing slowly resumes, current challenges are production quality and delivery time – as China rushes to capture speed on missed production time. Pro QC is located in over 20 cities across China, and with a large base of quality engineers and product engineers, we are able to travel to factories to perform onsite monitoring and evaluation of quality in order to help our clients minimize the risks involved and offer support with normal business operations.

South Asia, Southeast Asia

With increasing restrictions on movement and business across the region, it is clear that any supply chain-oriented businesses with a base across these regions will be severely impacted. This is expected to continue further as lockdowns prevent orders from being fulfilled.

India, Indonesia, and Malaysia are closed with lockdowns preventing movement of people across the board. The situation in Bangladesh, Myanmar, and Vietnam is evolving, with factories likely to remain mostly shut through early April.

Europe

As western Europe completely shutters up, demand has begun to dry up in many sectors, forcing businesses to take time out to recalibrate. The food and medical industries continue to operate in this region – both sectors that Pro QC holds expertise in navigating.

The Americas

While COVID-19 begins to take hold across the Americas, the US government has been forced to begin renegotiating tenets of the hard-won trade truce with China. Expectations are that trade tariffs on medical supplies from China will be relaxed during this time of need.

Businesses have been forced to think outside their comfort zones already as a result of the trade tariff situation, and many US-based businesses had started ramping up the development of suppliers across other countries as they began shifting their supply chain beyond China. However, we could see a further knock-on-effect if other countries are shut down for the longer term while China opens back up again for business.

If you’re ready to establish an action plan to mitigate risks your supply chain, get in touch with Pro QC to see how we can help.

Read our article on Mitigating Impacts of Crisis on Supply Chains here.

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