Coronavirus or say it as COVID-19 is a new strain of the virus that has been identified in humans. It is causing common cold to severe diseases like SARS (Severe Acute Respiratory Syndrome). Globally the death toll has crossed 37000 nos.
How the major companies worldwide are getting affected due to this COVID-19?
First, take the example of Apple, the company which has a turnover of billions per year. They are known worldwide for their advanced technology. Their parts come from more than 40 countries of the world, all of these countries, further have supply from China. Hence, due to the outbreak of Coronavirus, there is a shortage of manufacturing components which further affects production.
Also, cargo-carrying chickens that are routed from the USA to China are diverted. Since refrigerators are out of service and there is no production. All these incidents suggest that there is a supply-chain bullwhip effect, which in simple words means, that when there is
demand and supply is low, the retailer will raise the higher price and then the wholesaler, and this forms a chain, which leads to higher prices of the item.
What is the outcome of the supply-chain bullwhip effect in China?
To say, 90 percent of all active businesses in China is running at loss, which used to supply more than 50,000 companies all over the world. The intermediate products of various industries like
textile, pharma, electronic and many other industries. The parts of the electronic gadgets are all exported from China, but since the outburst of COVID-19, it is taking a turn. Gradually now
China is reviving its production but now consumption countries are getting impacted across the world.
What is the need of the hour?
COVID-19 still has no accurate treatment, but precautions are needed to be on the safe side.
And regarding the global supply chain, there is no clue when it will be up. For the time being, you can keep in mind the below-mentioned precautions.
● Observe social distancing
● Wearing masks in crowded places.
● Washing hands frequently.
● If having any of the symptoms of COVID-19, getting help from the doctor.