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Concerns mount about supply chain interruptions… do you have a plan b in place?
Right now, most of the supply chains serving the professional cleaning, packaging, and related industries have not been seriously impacted by Covid-19 (Coronavirus).
However, that could change very quickly, according to Michael Wilson, vice president of marketing and packaging for Afflink, a sales and marketing organisation with more than 300 distributor-members throughout the US.
"It's tough to predict, but recent studies indicate that supply chain interruptions are mounting and may grow in the coming months."
Michael bases his conclusion on a study released in mid-March 2020, by the Institute of Supply Chain Management, a non-profit organisation based in Arizona.
According to that survey, more than 75% of the companies surveyed are already experiencing some supply chain disruptions. Further, more than 80% believe that they will experience some or more disruptions due to Covid-19.
"Most of these delays are because so many products or key components of products are manufactured in China," says Michael. "If there are interruptions in China, this can have a domino effect, impacting suppliers around the world."
Among the other findings in the Institute's study include the following:
* 57% of respondents reported lead times for specific products from China are increasing, in some cases, doubling. "Lead time refers to the amount of time it takes a manufacturer to create and then deliver a product," says Michael.
* 53% report that they are having difficulty getting supply chain updates from Asian suppliers.
* 50% of Chinese manufacturing facilities report that they are still operating at about half capacity.
* 46% of Chinese suppliers say they are facing delays in getting finished products moving from Chinese ports
"However, the study also pointed out a serious flaw in our own supply chain systems," adds Michael. "44% of US respondents report that they have no 'Plan B' in place to address supply disruptions from China or anywhere else. This is a flaw we cannot let happen again."
2nd April 2020