The stock market is in very vulnerable, businesses are facing major downturn, unemployment rates are climbing. All governments of the world are in peril, as they tackle both health issues and tanking economies.
Over the past few weeks there has been significant reduction of travel, yet various government agencies are attempting to keep commercial trade lanes open.
China is reporting that manufacturing is passing 75% capacity and the various carriers have begun to re-position their assets to begin to move freight on regular patterns.
Globally there has been an uptick in cases, particularly in Europe. Countries such as Italy are struggling with an overburden to their healthcare systems.
At Blue Tiger International we have been monitoring the situation and all reports closely. In this uncertain time, we understand the very real impact this outbreak has on business models, personnel and global supply chains. As consulting experts, we are being asked our opinion daily by media outlets, clients, business associations on this topic. We are preparing opportunities to speak to specific strategies and plans to prepare and mitigate the situation. Blue Tiger International has developed solutions, options and business models to assess and implement the necessary global supply chain modifications.
In the short-term companies may consider the following:
Focus on reliable information flows to keep appraised of the impact to their organizations and supply chains
Keep up timely and comprehensive communications with suppliers and customers
Conserve inventory levels
Seek short-term options for supply sources
Establish point personnel and committees to collaboratively provide pandemic solutions
Be sensitive to health care concerns, individual needs of colleagues & staff
Anticipate expedited shipping, such as by air freight … which will increase “landed costs”
Longer-term … a mitigation strategy we have been utilizing is Alternative Sourcing options, our clients who utilized this strategy are continuing to do business as they have found better suppliers in others markets such as Vietnam, Malaysia, Taiwan, Mexico and Turkey to name a few. These new suppliers are seeing an upswing in their business making them more competitive with providing even greater quality. Our clients are pleased with the savings and even more pleased as they are NOT being affected by the tariffs and disruptions occurring on goods originating in China.
China will always be an important supplier to the world, but companies should seek diversification in their supplier portfolios.
Blue Tiger International’s “Risk Mitigation” strategies, with time proven benefits, operating in numerous verticals and focusing on supply chains with purchasing and sourcing outside of China. There are several options available, utilization of programs in:
• Free Trade Agreements
• Bonded Warehousing
• Foreign Trade Zones
• Freight Consolidation
• Tariff Engineering
• Alternative Sourcing
Solutions can be short-term in just managing the current set of circumstances and disruption or long-term in searching for more sustainable options that will work over greater periods of time and circumstance.
Areas such as contingency planning, utilization of different modes of transit, discriminating inventory allotments, and the demand planning process…all can be revised to deal immediately with the current set of circumstances.
Blue Tiger International remains committed to serving our valued customers and supporting the health and well-being of their personnel and
global business models.
Contact us to see how we can assist you with strategies to keep your business running effectively and smoothly.
Learn More about Blue Tiger International visit our website
or contact Diane Martin, Director of Client Services at Dmartin@bluetigerintl.com