Today, the Institute for Supply Management (ISM) released a survey assessing the impact of the novel coronavirus, COVID-19, on global supply chains. The survey found that roughly 75% of companies have had some supply chain impact resulting from COVID-19, with more than 80% expecting further impacts down the line.
Key findings include:
- 57% of companies report longer lead times for Chinese components, around twice as long on average
- Manufacturers in China report operating at 50% capacity
- Over 44% of respondents do not have a plan to address supply chain disruption from China, and more than half of those companies are already reporting active disruptions.
- The severity of anticipated impacts increases after Q1 2020
- 62% of respondents are experiencing delays in orders from China
- 53% of respondents are having difficulty getting supply chain information from China.
- Nearly one-half are experiencing delays moving goods within China (48%).
- Almost one-half (46%) report delays loading goods at Chinese ports.
What does this mean?
It’s further evidence that supply chain transperancy is critical to business continuity and resilience, especially in times of great crisis. Interos has written previously on the need for businesses and organizations to increase their understanding of their supply chains, particularly in regards to China.
Without an understanding of sub-tier relationships, companies’ ability to understand their level of exposure to the ripple effects of the coronavirus is limited, as is their ability to take meaningful action that will hasten much-needed economic and industrial recovery.
Solutions that are reliant on manual supplier discovery and assessment are not able to adequately scale to meet severe, global challenges like COVID-19. Businesses need a solution that can discover their supply chain’s exposure to the coronavirus rapidly, and keep them appraised as the situation changes.
To learn more about how your business can increase resilience and deepen their supply chain awareness immediately, visit our Coronavirus Risk Operations Center.