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The coronavirus and China. The logistics threat is closer than you think.

By Steve Geary | 02/12/2020 | 10:54 AM

Dun and Bradstreet looked into the coronavirus and found, “At least 51,000 (163 Fortune 1000) companies around the world have one or more direct or Tier 1 suppliers in the impacted region, and at least five million companies (938 Fortune 1000) around the world have one or more Tier 2 suppliers in the impacted region.”

Have you activated your contingency plan to shift to sources away from the affected region?  Contingency plans matter, especially for internationally sourced components.

Do you have a risk adjusted process to manage threats across your portfolio that addresses events like the corona virus?  Oversight matters.

Do have any way of assessing the impact of risk propagating through lower level of your distribution network?  Tier 2 matters.

Have you identified alternative sources of supply, especially for you internationally source components?  Order from a location in the United States doesn’t mean your product is coming from the United States.

In the aftermath of the outbreak of the coronavirus in China, these are some issues every logistics practitioner in the United States should be considering.  There are more.  Get to work.



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About Steve Geary

Steve Geary

Steve Geary is an adjunct faculty member at the University of Tennessee's College of Business Administration, and is on the faculty at The Gordon Institute at Tufts University, where he teaches supply chain management. He is the President of the Supply Chain Visions family of companies, and Chief Operating Officer at ROSE Solutions, consultancies that work across the government sector. Steve is a contributing editor at DC Velocity, and editor-at-large for CSCMP's Supply Chain Quarterly. He is listed in Who's Who in America, Who's Who in the World, Who's Who in Science and Engineering, and Who's Who in Executives and Professionals. In November of 2007, Steve was recognized for "Selfless Service to Our Nation and the People of Iraq" by the Deputy Secretary of Defense.


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