84% of organizations are reportedly feeling the impact of the COVID-19 virus. It was an established fact that, many companies are reliant on Southeast Asia, other low-cost jurisdictions, especially production and supplies in China. Trade analytics have analyzed that, China lost global export market share at quick pace in 2019, as many companies moved to outside of their country. The disruption is particularly acute in the pharmaceuticals, metals, electronics and automobile industries, consumer and industrial products. 10
Operational disruptions caused by the effects of reduced supply need to be mitigated. Disruptions to logistics suppliers has to be managed. Meeting contractual obligations to customers is high priority. 4
Diversifying Supply Chains in Asia Pacific and Beyond, The Shifting Investment Landscape during COVID-19, Shock Proofing Supply Chains – these podcasts can be accessed for more better understanding5.
Low-cost production is moving mainly to Mexico and Vietnam. The gain is seen at Vietnam’s clothing and Smartphone exports.
Mexico’s automobile parts and computer exports also showed good growth 8.
Gartner, Inc. has developed three prevaccine scenarios to help chief supply chain officers and other leaders of supply chains and logistics networks anticipate how the future may unfold.