In December 2019, Chinese authorities informed the World Health Organization (WHO) about the spread of a type of contagious pneumonia, caused by an unknown virus originating in Wuhan City, in Hubei province.
According to the World Health Organization, coronaviruses (CoV) are a wide family of viruses that can cause various conditions, from the common cold to more serious diseases […]. A new coronavirus is a new strain of coronavirus that has not been found before in humans.
The coronavirus (COVID-19) was first reported in Wuhan and is spreading across the globe as a pandemic. The alert is global. One of the usual recommendations to avoid spreading infection, in addition to hygiene and personal care, is to avoid contact with anyone who shows signs of affection.
We know that cost advantages, mainly, have led most companies in the world to import semi-finished products and finished products from China. Wuhan is a port city with significant industrial activity in the production of automobiles, pharmaceuticals, chemicals, food processing, heavy industry, electronics, among others, and biotechnology research activities. But the cut of the chain has not been only in the Wuhan link, but in the whole of China.
According to a recent study, around 50% of companies have adopted a waiting attitude. Of course, returning to a situation in which global demand can be supplied from other countries with similar characteristics to China, such as India, guaranteeing quality and lead times for delivery, would require a time that the supply chain could not put up with. However, the situation is critical and companies must stop to plan alternative strategies, evaluating the potential risks of supply chains.
It is obvious that the world is constantly changing. Government policies, natural phenomena, pandemic diseases, and other factors with catastrophic effects cut, not one, but several links in the different supply chains of globalized companies. It is time to rethink so that there is no dependence on a particular location or supplier and to maintain the continuity of the production and business processes.
In the next few days, the levels of uncertainty about the coronavirus should begin to decrease and companies will be able to determine what course to take and what actions to implement. Whether the outcome is a total crisis or a gradual recovery, it will be necessary to review the strategy of each supply chain and mitigate the risks for the future.