Finance & Economics

Here’s how COVID-19 impacts global supply chains

Nowadays businesses are facing a burden the coronavirus puts on supply chains

global supply chains

Here’s how COVID-19 impacts global supply chains. Source:

According to Zurich North America, the commercial property-casualty insurance provider, the COVID-19’s spread is not only impacting shipping lanes, ports, and locations, but also the people inside manufacturing facilities.

The report revealed that China is one of the largest manufacturers of parts and products for businesses worldwide. That means that the virus broke out in a specially sensitive region of the world when it comes to supply chain risk. The coronavirus made infected and those coming in contact with the infected to go into quarantine for at least 14 days. Furthermore, cities and even whole countries closed the borders to stop the spread.

Despite the necessity of business leaders to keep employees safe, many of them need to remain open and are reliant on the delivery and distribution of supplies and goods.

There are two things that businesses should be doing concurrently and right away. The first is assessing their current exposure to supplies that have already been interrupted and sourcing alternative suppliers. If they have to prioritize, they should focus on the supplies that have the greatest impact on revenue. The second is looking at locations that have yet to be interrupted and making sure those are secure
Chris Snider, interim head of Risk Services for Zurich Canada




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