Zika and Your Supply Chain
Zika virus has had repercussions on business that may not have been anticipated. Industry has been affected by new regulations that the Chinese government has put in place to keep Zika from spreading in China. Every container originating from the U.S. will now require a certificate verifying that it has been fumigated. Manufacturers worry that this will add time and expense, making the supply chain less efficient.
In addition to new regulations, some worry that Zika fears will cause preemptive decisions that will disrupt the supply chain. These include stockpiling, switching suppliers due to geographic location, and shutting down operations for a period of time. Supply Chain Management Review has some suggestions for handling these issues:
“Firstly, be proactive: have a plan when the boss walks in, or the customer wants to stockpile “in case” Zika requirements slow down freight flows. Secondly, communicate – keep key suppliers and customers in the loop on what you’re doing so that you can generate synergies and develop mutually reinforcing decisions.”
For more information, see the article from Supply Chain Management Review.