5 Reasons to Rethink Your Supply Chain During the Pandemic

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 worldwide, 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 needed.

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 will likely 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 it is alleged the virus can spread is through frozen meat. If the virus gets on the animal or the meat 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 import it, 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. It would help if you diversified your supply chain to protect yourself as a business. 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 more affordable.

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 on the cusp of becoming an excellent world economy.

Vietnam also had the bonus of having eradicated COVID-19. As a result, 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 business people 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 two 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 labor cost and is one of the biggest economies in the world. Cities like Bangalore also have a well-established technology culture if you export or import electronic equipment.

Unlike Vietnam, India has established trading practices with global businesses and uses Amazon. Therefore, if your companies 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 that you can sell locally. You don’t need to bother with a vast 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 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 control over where their goods are 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 crucial 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 creating a fulfilltopia, check out the rest of our site.

Diana Muniz
Diana Muniz

With over 20+ years of experience in a variety of corporate and entrepreneurial environments, Diana has developed a great understanding of Marketing Strategy, Brand Development, Customer Success, Public Relations and Management. Her internal drive for developing others and external brands, has allowed her to work in some of the largest cities in the world including Milan, Paris, NY, Mexico, and the Middle East. This experience has been fundamental to Diana’s success and ability to communicate cross-culturally.