Is there a Doctor in the House?
Last week the president went on TV to calm down those concerned about the penetration of the Coronavirus (Covid-19). While some politicos are calling the virus a hoax, the total number of cases in the U.S. was 80 as of the latest announcements.
Many companies are already seeing a significant impact on their business. Global travel is being cancelled, Asian operations have slowed down, supply chains are being disrupted and the Dow Jones is experiencing their worst drop since the financial crisis of 2008. Approximately 29 countries and territories around the world have been affected. The spread of the virus is intensifying fears of a global recession.
Apple and Nike and other manufacturers around the world are showing the negative effects of the virus. The spread of Covid-19, is unsettling supply chains, slowing sales of some products, throwing travel into chaos and disrupting the historic record growth in the stock markets. It is predicted that the coronavirus will continue to spread and cause more disruptions, suppress demand that may fan the flames of a global slowdown.
It’s the fear of the uncertainty that businesses are reacting to today. China’s official Purchasing Managers’ Index (PMI), a widely watched measure of economic activity, fell further in February than at any time in the last 12 years, China’s National Bureau of Statistics said. Businesses are definitely starting to realize their vulnerabilities if they rely heavily on China as an integral part of their supply chain and products. This may result in companies reducing their dependence on China.
Smart business leaders are taking action now.
- HR departments are pulling together information pertaining to the coronavirus to create a ready reference guide for employees. These guides will not only educate staff about the viral infection, but also identifies ways to avoid it.
- Where feasible employees are being allowed to work from home to prevent internal contamination.
- Business Interruption Plans are being reviewed and updated to ensure these processes are well known and are ready to be deployed.
- Policy statements are being communicated with regards to travel.
- Alternatives for single source suppliers for critical parts are being developed.
It’s time to think like a doctor and determine the actions that you may need to prescribe to minimize the impact of the Coronavirus on your business.
Data2Logistics is here to support companies in meeting the challenges of an ever evolving logistics environment. To learn more about how we can support your business, contact Harold B. Friedman at email@example.com or 609.577.3756. We are here to support you!