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“Flexible Supply Chains Are The Key To Fight Unpredictable Situations Like Coronavirus Outbreak”, Says Top HP Executive

The report said that to tackle such a situation in the future, first step is to develop visibility to your entire supply chain -- primary, secondary, and even tertiary players and steps

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Coronavirus
A global recession is likely if coronavirus becomes a pandemic, and the odds of that are uncomfortably high and rising with infections surging in Italy and Korea, Moody's Analytics said this week. Wikimedia Commons

Although the coronavirus outbreak has slowed down the global supply-chain for industries across the spectrum, the need of the hour is to not only have a diverse portfolio of products but also a diverse portfolio of factories so that such unpredictable situations can be tackled in an efficient way in the future, a top HP Inc executive said on Thursday.

A global recession is likely if coronavirus becomes a pandemic, and the odds of that are uncomfortably high and rising with infections surging in Italy and Korea, Moody’s Analytics said this week.

“We at HP Inc have a good plan to deal with the current situation which is very dynamic. That’s why it is important to have different portfolios. If you have a portfolio of products, you must also have a portfolio of factories. We are not dependent on one product and one factory,” Vinay Awasthi, Managing Director, HP Inc., India, Bangladesh and Sri Lanka, told IANS.

According to him, traditional supply chain models will slowly pave the way for more flexible mechanisms so that inventories remain at their optimum level. “I think adjustments will happen to the global supply chains. The adjustments are already happening because of the global trade war between US and China. In the future, it’s not just going to be one factory that will create one type of product and will supply all over the world,” Awasthi emphasised.

Global management consulting firm Kearney, in its report titled “Coronavirus and the impact on global supply chains,” said last week that the coronavirus outbreak and its impact on the economy has ringed the bell to immediately rethink existing supply chain scenario as established strategies only work when they are not disrupted.

The report said that to tackle such a situation in the future, first step is to develop visibility to your entire supply chain — primary, secondary, and even tertiary players and steps.

HP
Although the coronavirus outbreak has slowed down the global supply-chain for industries across the spectrum, the need of the hour is to not only have a diverse portfolio of products but also a diverse portfolio of factories so that such unpredictable situations can be tackled in an efficient way in the future, a top HP Inc executive. Wikimedia Commons

“Next, recognise that events like the coronavirus outbreak are going to happen again and again – and determine what plans work best to mitigate the damage,” the report added.

According to Awasthi, because of the coronavirus situation, people are willing to just advance the piece on flexible supply-chain delivery models.

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“We have factories in China but we also have factories at multiple places elsewhere so we are ramping up production at those factories. Going flexible is complex as every country has different tariff structure but that is the name of the game and the future,” he added. (IANS)

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India’s Lockdown Disrupts Functioning of Amazon and Flipkart

Amazon India Delivery and functioning of Essential Goods via. E-commerce companies Disrupted

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Virus Outbreak Amazon
India's coronavirus lockdown is disrupting e-commerce companies including Amazon and Flipkart. Pixabay

India’s coronavirus lockdown is disrupting e-commerce companies including Amazon and Flipkart, despite government assurances it would not, four sources familiar with the matter told Reuters.

Differing state and district level regulations relating to the 21-day lockdown, which began on Wednesday, are hindering operations, the sources said on Friday, with e-commerce firms finding it difficult to get curfew passes for delivery staff.

The disruptions highlight the difficulties of ensuring the supply of essential goods to 1.3 billion people during the shutdown in India, which has so far reported 724 cases of coronavirus and 17 deaths. Most of Amazon’s 60 plus fulfillment centers in India are shut and the U.S. company is in talks with state authorities to try to reopen them, three of the sources said. Industry executives say local authorities have not followed guidelines, stopping deliveries and warehouses from operating.

Virus Outbreak Amazon
A sign is lit on the facade of an Amazon fulfillment center. VOA

“It’s worse than one can think,” one source said, while a second added that only a “miniscule” number of Amazon warehouses were operating, citing this as a key reason for disruptions. Even when operations do begin to return to normal, it will only be in major cities, the second source added.

Amazon said in a statement that its top priority was to deliver the products which customers need the most and it was seeking urgent help from federal government and local authorities with detailed on-the-ground operating procedures. In New Delhi, Amazon’s Pantry service was suspended and the delivery slot for essential goods, such as oil and soaps, was shown as being April 26.

“There are clear guidelines provided by Government to enable essential services, and so we are working with the relevant authorities to ensure we are able to operate,” Amazon said on Twitter in response to questions from users in India.

Indian trade minister Piyush Goyal held a meeting with e-commerce executives on Thursday and said the government was “committed to ensuring that essential goods reach the people.”

Also Read- Effects of Quarantine on Mental Health and Relationships

Walmart-owned Flipkart has also been hit, with some grocery items which had been available earlier on Friday in New Delhi intermittently going out of stock. A source familiar with the situation said Flipkart was facing challenges with last-mile delivery of goods once they leave its warehouse due to restrictions on movement.

Flipkart said in a statement it had resumed grocery operations and there was a significant spike in orders. “We are enhancing capacity to meet the increase in customer requirements,” it said, adding it had received support from local and federal authorities.  (VOA)