Coronavirus and Its Impact on the Supply Chain was published for client AFFLINK
Tuscaloosa, AL – The impact of coronavirus on supply chains around the world may prove severe. However, currently, we are unsure of the seriousness.
It typically takes as much as 30 days for items from one area of the world to be delivered and shipped to another. Because of this, we will likely have a better feel for the situation – and the potential supply chain disruption – in the next 30 days.
Does not mean we should take a wait-and-see attitude?
According to Michael Wilson, Vice President of marketing and packaging at AFFLINK, a leader in supply chain management, the answer is a resounding no.
“There are steps manufacturers and distributors need to take, to monitor their situation and prepare for the potential impact coronavirus may have on the different supply chains.”
Wilson breaks these steps down into three categories:
Do It Now
Suppliers and distributors need to find out where the parts or products they purchase are manufactured. This can be more difficult than we realize. Many products made in China, for instance, are produced by different sub-manufacturers. If these sub-manufacturers are shut down, the supply chain can be at risk.
There may be legal ramifications if a product cannot be delivered to a customer on time or when needed. Accounting issues can also materialize, including late payments, delayed invoices, and credit memos needing to be issued. All need to be investigated to help determine what steps suppliers and distributors can take to protect themselves.
Do It Soon
Manufacturers and distributors should check-in with suppliers and see if they are being impacted, and if so, how seriously. While they may not be experiencing any problems currently, we need to find out as soon as possible what their situation is.
Do It This Year
Many manufacturers and distributors do not have any form of risk management program in place. “Because of coronavirus, climate change, even natural disasters such as floods and fires, a risk management program is needed,” says Wilson.
“The goal of these programs is to establish alternative sources to help keep their businesses operating and goods flowing, should there be supply chain distributions.”
Editors please note: The word “AFFLINK” is always capitalized.
More AFFLINK news can be found here.
Connecting more than 200 manufacturers of Facility Maintenance, Packaging, Safety, Office and Industrial Supply solutions with over 300 independent distribution experts, AFFLINK is, just as its name suggests – that critical link offering clients innovative products, market expertise, and improved profitability, all of which is fueled by our leading-edge information technology. For more info, visit: http://www.afflink.com/
Michael Wilson, vice president of marketing and packaging
1400 AFFLINK Place
Tuscaloosa, AL 35406
Media Contact: Robert Kravitz