Impact of Conronavirus on Supply Chain Operations in China

Dr.D.SathishKumar, Professor, SIMS

          The Coronavirus has been a wreaking disaster on a global basis as it has spread exponentially across continental lines causing stocks to stumble, supply chains to slow and transportation operations to be disrupted. China is also known as a key supplier of materials for electronic, pharmaceuticals and automotive supply chains. The cause or the impact of the virus has closed many public venues temporarily. People travelling from china have endorsed measures to test the virus. There are over 13 million people residing in Wuhan and 16 other cities have been locked to protect people from virus.

List of top companies and their current situations and decisions:

• Honda has  withdrawn its staff and families from Wuhan
• Peugeot also has withdrawn staff and families from Wuhan
• H&M Closed its 13 stores from Wuhan
• McDonald’s has closed some restaurants across 5 cities
• Starbucks closed its Wuhan outlet.
• Nike store in china have been shut down

If the Virus continues to spread, more and supply chain will be affected such as operations involving labour, supplies, production and transport etc.

Entertainment:

            Disney: More than a week, theme parks in Shanghai and Hong Kong have been shut down. The operating income has been to reduce $175 Million. I MAX has postpone the release of five films it had planned to showcase in china.

            Wynn Resorts: Is losing $2.4 million to $2.6 million every day.

Technology:

Apple: Apple remains closed and that traffic into its stores in the country had fallen off.

Qualcomm: Smartphone chips are also shutting down.

Automobile:

            Tesla, Ford and Nissan: Auto plant has also closed down its operations in china

            Hyundai, Volkswagen: The nationwide operations has limited its travel options for the production employees in china.