Do you own a business? It’s an amazing time to set up a business as new opportunities open up because of the coronavirus pandemic.
But if your business relies on third-party shipping or supplying goods to your customers from all over the world it might be time to reconsider your supply chain.
Companies like Fulfilltopia know how to handle this situation and can help you reroute your supply chain if you need it.
Here’s everything you need to know about why you need to consider rethinking your supply chain.
1. Some Areas Are off Limits
Because of the pandemic, some areas of the world are off-limits. If you try to get goods out you are likely to face problems. COVID-19 is known to stay on surfaces and goods are no exception.
The last thing a country that has eradicated COVID-19 wants is another outbreak.
One way in which it is alleged the virus can spread is through frozen meat. If the virus gets on the animal or the meat and that is frozen then it remains dormant and reactivates when the meat is defrosted.
Importing meat at this time is not a great idea. If you are going to import it then you need to rethink food safety measures for your fulfillment center.
2. Overreliance on China
The biggest lesson of this pandemic is how over-reliant on China we all are. The decision to allow the borders with China to remain open, even at the height of the Coronavirus crisis, had devastating consequences.
And yet the reason many governments refused to close them was political. Too much capital and goods flow through China and we could not risk the potential losses associated with closure.
This policy has been detrimental if you own or use a distribution-center. Consumers do want a Fulfilltopia with cheap goods from China. However, many people aren’t aware of the conditions of the labor market in China, which are often poor for the workers.
But this has to stop. To protect yourself as a business you need to diversify your supply chain. This means ensuring you source products from a variety of different countries.
One of the consequences of this might be raising your prices, but consumers in a post-pandemic world may be willing to pay more if they know their goods have been sourced ethically.
3. Consider Vietnam
If you source your goods from Asia what are your alternatives? Vietnam is one option. Apple has moved some of its assembly team for Airpods Pro to Vietnam in response to the pandemic.
Labor practices and employment policies in Vietnam are higher than in China. Workers are still cheap and are paid an average of 6 million Vietnamese Dong per month ($250) but the cost of living is cheaper.
Vietnam imposes high import and export taxes on goods, so you may find that it’s not as cheap as China.
However, you would be supporting a developing country that is on the cusp of becoming a great world economy.
Vietnam also had the bonus of having eradicated COVID-19. There are currently no restrictions or active cases and there have been only 35 deaths thanks to the country’s proactive approach.
This would make any fulfillment center very safe.
Executives and businessmen who want to come to Vietnam to inspect factory sites and hire workers for a new supply chain will have to isolate in a quarantine facility for 2 weeks before they are allowed into the country.
4. India is Another Option
India is another great option if you are reconsidering your supply chain in light of the pandemic.
India has a cheap cost of labor and is one of the biggest economies in the world. Cities like Bangalore also have a well-established technology culture if you are exporting or importing electronic equipment.
Unlike Vietnam, India has established trading practices with global businesses and uses Amazon. If your businesses rely on Amazon then India might be a better option for you. This is supply chain logistics-101.
Remember that India has one of the highest case rates for COVID-19 so you will need to take extra precautions such as putting some items into quarantine when they arrive at their destination.
5. Sell Local
Another aspect of the pandemic that people have forgotten is the fact that you can sell locally. You don’t need to bother with a huge supply chain if you can sell to people in your immediate surroundings.
The pandemic has made people realize how over-reliant they are on China. They want to be able to trust the products they buy. And yet they can’t do this if you yourself don’t know where your goods come from.
Source some goods from local suppliers and have a chat with them. Find out what their values are and how they make their products. You can then pass this story on to your customers.
Customers Want to Live In a Fulfilltopia So Give it to Them
Today many customers want to live in a fulfilltopia. They want all of their needs met with one-click and delivered the next day or the same day. But the pandemic has shown they want more than this.
Many customers now want some control over where their goods from and whether they have been sourced ethically. This is the main reason for rethinking your supply chains and moving away from China.
Covid considerations are also key as people want to know the goods they hold in their hands are safe, with some countries now safer than others.
If you are interested in learning more about how to create a fulfilltopia be sure to check out the rest of our site.