Supply Chain News, Monday March 9, 2020

Singapore Plans to Stockpile Essential Items to Cope with Ongoing Coronavirus Crisis

According to the Straits Times, the Singaporean government is reviewing its policies on stockpiling essential items and diversifying its supply lines in preparation for long-term supply chain disruptions as a result of the coronavirus outbreak. Their main area of focus is food, including securing staples such as rice and noodles, as well as ensuring supermarket preparedness during demand surges.

For more information, please see:

https://www.straitstimes.com/singapore/spore-reviewing-its-stockpile-of-essentials-diversifying-supply-chain

Costco states it could take weeks to return to normal supply chain operations

US retail giant Costco is continuing to adjust to the coronavirus situation. The company has been offsetting its reliance on shipping by making use of air freights and stresses that operations are now returning to normal at Chinese ports. CEO Richard Galanti stated that the company’s supply chain could handle increased demand and return to normal in a few weeks, provided significant improvements in the outbreak situation occur.

For more information, please see:

https://www.supplychaindive.com/news/costco-coronavirus-demand-procurement-supply-chain/573628/

H&M Opens Global Supply Chain to Competitors to Improve Sustainability

In an effort to improve the environmental impact of the garment industry as a whole, H&M is opening up its supply chain to allow competitors to take advantage of its more sustainable practices. It will now collaborate with smaller brands in a wide range of areas including product development, sourcing, production, and logistics.

For more information, please see:

https://www.ft.com/content/302937a0-5d6c-11ea-b0ab-339c2307bcd4

Apple Product Launch Faces Months of Delays

According to Apple Insider, an investor from the Bank of America suggests that the launch of the iPhone 12 may be delayed by up to a month. This is of special importance as it is believed that the iPhone 12 will be the company’s first to feature 5G technology, a game changer in the industry. Supply Chain expert Elliot Lan also suggests delays of up to two months for the as of yet unannounced iPhone SE 2. These delays are reportedly the result of the ongoing coronavirus situation.

For more information, please see:

https://appleinsider.com/articles/20/03/08/apple-product-launches-face-months-of-delays-over-supply-chain-backlog

Companies that have left China are still vulnerable to the coronavirus outbreak

According to the Wall Street Journal and various news sources across Southeast Asia, many businesses that have left China are still heavily affected by the coronavirus outbreak. While many companies have successfully outsourced their textile and/or footwear production to emerging markets such as Vietnam and Bangladesh, these regions still rely heavily on imports from tier suppliers in China to fulfill their production requirements.

For more information, please see:

https://www.wsj.com/articles/companies-that-got-out-of-china-before-coronavirus-are-still-tangled-in-its-supply-chains-11583686996

About HQTS

HQTS has over 25 years of experience in quality assurance and is ready to help businesses build strong and meaningful supplier relationships across Asia. Its multiple service locations across the world’s major manufacturing regions serve as one-stop shops for clients’ inspection needs, including  factory audits, production monitoring, pre-shipment and sorting inspections, and everything in between.

HQTS is now offering enhanced services to help clients cope with the ongoing coronavirus outbreak. For more information, please see:

https://www.hqts.com/news/hqts-offers-enhanced-services-for-the-coronavirus-outbreak/