Any halt in production in China for more than two to three weeks will cause a ripple effect across the globe, the impact of which could be felt for months. As a result, it’s crucial for UK manufacturers to arm themselves against potential disruptions.
Resilinc uses the data from its EventWatchAI monitoring system to identify ongoing threats to the global supply chain.
Bindiya Vakil, Founder and CEO of Resilinc, explains, “While there has been some stockpiling by companies in anticipation of further disruption, the relaxation of China’s zero-tolerance Covid policy means that many manufacturers will face labour shortages and ‘self-imposed’ lockdowns as a result of sickness.
“At the moment, the spotlight is on large companies such as Apple and now Dell, who, just last week, announced it is phasing out the production of chips in China.
“However, the situation in China and the impact on supply chains should not just be the concern of ‘big business’. The very nature of supply chains being intrinsically linked across the globe and involving organisations of every size from the small to substantial means that businesses of all sizes need to take action now to strengthen and diversify their supply chains.”
