Managing the Impact of Coronavirus on Supply Chains

Current status

The outbreak of coronavirus, Covid-19, continues to upend daily life for tens of millions of people in China as well as transportation, manufacturing and supply chains throughout the world

While quarantines, screening and other procedures are in place in China and elsewhere, the coronavirus will be an issue for a while to come

At the time of the SARS outbreak, China represented about five per cent of the global economy. Today, China accounts for about 18 per cent and a massive disruption there will have a much bigger “downstream” effect on the rest of the world

Delays and disruption to manufacturing and logistics are an absolute certainty at this point – what remains in question is the extent of the disruption

Travel restrictions limit workers’ ability to return to their jobs following the government-extended Chinese New Year holiday, and those in quarantined areas maybe there even longer. Factories in certain areas will remain closed for extended periods of time and component manufacturers and raw materials suppliers will be impacted in ways that are disruptive to factories also

Transportation roadblocks are also expected to disrupt business

When the situation is given the all-clear, companies will be trying to make up for delays and decreased production capacity by increasing demand for the limited production and shipping space that will be available. This will result in bottlenecks for both that will slow things down even further

Whilst the above narrative seems “grim,” companies who think laterally and utilise alternative supply chains creatively will perform well over the next few months

Promotional Products Industry

The industry, like many others, is currently preparing for coronavirus-related business disruptions, despite the levels of unknowns

Fortunately, Brand Promotions has long-established local supply partners and there are many options we can offer to suit our customer’s events and campaigns, regardless of the situation in China

We have access to enormous stocks of clothing across many brands such as Gildan and AS Colour. Many plastic items (blow moulded particularly) are manufactured in Australia at affordable prices

Paper products, coffee mugs, pens – a surprising array of products are actually made locally or stocked in a massive volume

We are dedicated to providing branded merchandise to support our client’s marketing initiatives and whilst there will be some limitations due to the impact of coronavirus we have the networks and experience to ensure your brand will feature prominently for the duration