The outbreak of Coronavirus is having a devastating effect on mankind. Thousands of people are died across the world and thousands more are suffering. In all this, many major companies from all over the world are suffering. The production rate is falling drastically.
China has been supplying its goods overseas for a very long time. The major companies of India, the USA, Italy and other countries depend on China for its supplies in all the sectors.
All Chinese smartphone companies in India are going to be impacted due to this epidemic condition badly.
Impact on the international Logistics and imports
The parts that are required in the production of a mobile phone are supplied by China. Most of the parts like the display screen, memory and other such parts are made in China. Hence, due to the outbreak of Corona-virus and its severe effect, ports are restricted. Flights from China are getting cancelled every day. The containers are being scanned which is causing an additional lead time. Indian Government is trying its best to ensure well-being of the country’s people and hence trying to avoid any casualties. Also, the production units in China have been shut for long time or have starting operating now only.
What is the effect of it in the supply chain of the companies?
The supply chain is in a very critical situation. It is a very high risk. Due to this, companies like Xiaomi and POCO are suffering. The finding of an alternative supplier can be an option, but it is difficult to find one as China because it is the main source of production of all the components. Due to this, the price will rise too much in future. The production also may get inhibited due to this devastating situation.
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What is the viewpoint of ICEA regarding this issue?
The India Cellular and Electronics Association (ICEA) stated that the supply chain has been badly impacted. But, they also stated that some of the plants in China may have permission to open. But, for the time being, it may not be a good decision to open the plants now.
Whatever may be the consequence in the supply chain all over the world, the safety of mankind comes first. The Government of India is very serious about the precautionary steps and creating awareness all over the country in every possible way.
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