The impact of COVID-19 on supply chains: Considerations for customers and suppliers

  • In the grip of the global pandemic, companies without adequate supply chain diversification and short inventory may now be facing significant business disruption and loss.
  • In the long term, the COVID-19 outbreak will influence thinking around supply chain design and risk planning.
  • This article outlines the legal considerations for a company whether it is a customer or a supplier.

The effects of the coronavirus (COVID-19) on the world economy and global supply chains are rapidly unfolding, and are likely to have wide-ranging impacts to Australian companies. Companies without adequate supply chain diversification and short inventory may now be facing significant business disruption and loss.

Key manufacturing zones such as Wuhan and South Korea have been heavily affected by wide-spread quarantines, factory closures, and logistics disruptions. Many companies have been attracted to these manufacturing centres in an effort to reduce supply chain costs. At the same time, the adoption of a ‘just-in-time’ delivery and logistics methodology has led many companies to keep minimal inventory stock.

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