20 DC VELOCITY MARCH 2020 www.dcvelocity.com
A global gateway delivering goods to
market quickly, efficiently, sustainably.
We offer operational excellence and
unrivaled customer service.
Supply chain disruptions due to the coronavirus outbreak
could last from three to six months—as late as August—
causing impacts similar to those seen in the wake of 2009’s
swine-flu outbreak, according to experts from supply chain
risk-management software firm Resilinc.
In a Jan. 30 presentation, Resilinc CEO Bindiya Vakil said
that 280 supplier sites near Wuhan, China, where the outbreak began, had been affected by the Chinese government’s response to the crisis. At that time, the government
had extended the Lunar New Year holiday in an attempt to
contain the virus, leaving factories shuttered and employees
stuck at home as transportation systems were shut down.
Although markets have since reopened in China, many
businesses remained closed and millions of Chinese were on
lockdown at least through February.
Efforts to contain the outbreak soon delayed shipments
and disrupted global supply chains. Vakil said a clearer picture of the business impact will emerge when health organizations begin reporting recovery rates from the illness, but
for now, businesses should expect more supply chain hiccups
Resilinc, which tracks real-time data from more than
100,000 suppliers, has put together a list of recommendations for companies sourcing in the Wuhan region, which is in
China’s Hubei province and home to a range of manufacturing industries. In her presentation, Vakil outlined some of the
key steps businesses can take to prepare for the disruptions,
including scenario planning, communicating with suppliers
and subcontractors to ensure readiness, training employees
on various scenarios and next steps, and determining weak
links in their supply chains. “You are only as strong as your
weakest supplier,” Vakil said. ;
Global Industrial, an industrial products supplier and
operating company of Systemax, has opened a new
distribution center in DeSoto, Texas. Located in the
Dallas metro area, the DC will allow Global Industrial to
improve service to customers in the Southwest U.S. and
provide additional capacity to support the company’s
continued growth. … ShipBob, a technology company
that offers fulfillment services for e-commerce businesses, has opened a 185,000-square-foot fulfillment center
in Moreno Valley, California. This expansion will allow
ShipBob to take on more customers, further streamline
fulfillment, and bring next-day and two-day shipping
capabilities to e-commerce businesses.
Supply chain disruptions from corona-
virus could last up to six months