DC Velocity - March 2020

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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 ahead.

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.