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February 21, 2020

Impact of COVID-19 on supply chains

China is highly integrated within the global economy and has impressive transportation networks, which means that supply chain disruptions go far beyond regional concerns.

By GlobalData Healthcare

China is highly integrated within the global economy and has impressive transportation networks, which means that supply chain disruptions go far beyond regional concerns. With the coronavirus epidemic still on the rise, supply chains are being disrupted, with many industries having to draw contingency plans. On 18 February, the FDA announced that it was holding back inspections of facilities in China amid the continuing spread of the coronavirus (COVID-19). The suspended service will disrupt the distribution of food, devices, and drugs flowing from China to the US. Consequently, the FDA has warned that Americans might face shortages of critical medical products if the outbreak persists.

Free Whitepaper
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What is the impact of China’s Zero-COVID lockdowns on economic activity, consumer goods and the foodservice industry?

While wanting to protect the country from being overwhelmed by Omicron, China’s adherence to a Zero-COVID policy is resulting in a significant economic downturn. COVID outbreaks in Shanghai, Beijing and many other Chinese cities will impact 2022’s economic growth as consumers and businesses experience rolling lockdowns, leading to a slowdown in domestic and international supply chains. China’s Zero-COVID policy is having a demonstrable impact on consumer-facing industries. Access GlobalData’s new whitepaper, China in 2022: the impact of China’s Zero-COVID lockdowns on economic activity, consumer goods and the foodservice industry, to examine the current situation in Shanghai and other cities in China, to better understand the worst-affected industry sectors, foodservice in particular, and to explore potential growth opportunities as China recovers. The white paper covers:
  • Which multinational companies have been affected?
  • What is the effect of lockdowns on foodservice?
  • What is the effect of lockdowns on Chinese ports?
  • Spotlight on Shanghai: what is the situation there?
  • How have Chinese consumers reacted?
  • How might the Chinese government react?
  • What are the potential growth opportunities?
by GlobalData
Enter your details here to receive your free Whitepaper.

Although it may be difficult to predict the exact consequences of COVID-19, organisations are planning for supply shortages of materials routed from logistical hubs in impacted areas, as well as labour issues due to quarantine procedures or illness. Furthermore, travel may be restricted to certain areas, thereby limiting business transactions, which may cause consumers to seek alternative logistical and sales networks.

Dr Stephen Hahn, commissioner of the FDA said, “[the FDA] will continue to monitor the situation in China so that as the situation improves, we will be prepared to resume routine inspections….whilst the outbreak is impacting our ability to conduct inspections in China, it’s important to underscore that the FDA’s regular risk-based process of surveillance testing of imported products, including those from China, which is based on a number of factors, continues.”

Businesses throughout the world will see some disruption to supply chains as a result of COVID-19, and most will be looking to leverage their contracts in order to minimise the overall impact of these disruptions by using ‘force majeure’ as a shield. This aims to provide protection if a supplier cannot perform its contractual obligations due to circumstances out of its control, such as epidemics or pandemics.

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Free Whitepaper
img

What is the impact of China’s Zero-COVID lockdowns on economic activity, consumer goods and the foodservice industry?

While wanting to protect the country from being overwhelmed by Omicron, China’s adherence to a Zero-COVID policy is resulting in a significant economic downturn. COVID outbreaks in Shanghai, Beijing and many other Chinese cities will impact 2022’s economic growth as consumers and businesses experience rolling lockdowns, leading to a slowdown in domestic and international supply chains. China’s Zero-COVID policy is having a demonstrable impact on consumer-facing industries. Access GlobalData’s new whitepaper, China in 2022: the impact of China’s Zero-COVID lockdowns on economic activity, consumer goods and the foodservice industry, to examine the current situation in Shanghai and other cities in China, to better understand the worst-affected industry sectors, foodservice in particular, and to explore potential growth opportunities as China recovers. The white paper covers:
  • Which multinational companies have been affected?
  • What is the effect of lockdowns on foodservice?
  • What is the effect of lockdowns on Chinese ports?
  • Spotlight on Shanghai: what is the situation there?
  • How have Chinese consumers reacted?
  • How might the Chinese government react?
  • What are the potential growth opportunities?
by GlobalData
Enter your details here to receive your free Whitepaper.

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