Industrial journalist, Thomas R. Cutler discussed the impact of the Coronavirus on the supply chain in the recent issue of Manufacturing Outlook. The article can be read here.
Cutler reported that the impact of the Coronavirus is greater as it coincides with an already slowing Chinese economy. It comes at a time when American companies were already shifting supply chains from China to elsewhere due to new tariffs and trade tensions. The virus will serve as another reminder for companies to rapidly diversify supply chains.
Businesses should expect supply chain disruptions for approximately three to six months (perhaps longer depending on containment), similar to the 2009 swine flu disruption. More will be known once recovery rates of patients affected by the virus are provided by health organizations.
Tracking real-time data from hundreds of thousands of suppliers is critical; manufacturers with primary and sub-tier suppliers in the region plan for a range of scenarios, such as generating time horizons and reviewing inventory levels among suppliers; it is a cautionary warning of what can happen with a pandemic or natural disaster occurs.
Industries most affected by the disruptions include aerospace, automotive, general manufacturing, consumer goods, consumer electronics, food and beverage, life sciences, and industrial chemicals. Manufacturers must anticipate these scenarios, looking outside the organization to suppliers and subcontractors to ensure readiness. Critical communication internally and externally must be a natural and consistent process along with employee training and supplier verification. Manufacturers are only as strong as the weakest supplier.
About TR Cutler, Inc.
Thomas R. Cutler is the President and CEO of Fort Lauderdale, Florida-based, TR Cutler, Inc., the largest manufacturing communication firm worldwide with four dozen industry experts and thought leaders on staff. Cutler is celebrating the 21-year anniversary of the Manufacturing Media Consortium.
Cutler has authored more than 7,000 articles for a wide range of manufacturing periodicals, industrial publications, and business journals. Cutler is the most published freelance industrial journalist worldwide, and more than 4200 industry leaders follow Cutler on Twitter daily at @ThomasRCutler.
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