How are global supply chains managing the coronavirus?

By Sean Galea-Pace
Share
The coronavirus is significantly disrupting individuals and businesses alike. An ever-growing number of companies are feeling the effects of the deadly...

The coronavirus is significantly disrupting individuals and businesses alike. 

An ever-growing number of companies are feeling the effects of the deadly virus, with many global organisations fearful it could get worse. Supply Chain Digital looks at how three global companies are handling the coronavirus.

Apple

The global tech giants, Apple, has warned of global “iPhone supply shortages” resulting from its Chinese factories closed due to the outbreak. Apple manufactures the majority of its iPhones and other products in China, and the coronavirus’s increasing presence has caused the firm to halt production and close retail stores in China. In a press release, Apple confirmed it would not meet its Q1 revenue target of US$63-67bn. “Work is starting to resume around the country, but we are experiencing a slower return to normal conditions than we had anticipated,” read the press release. “As a result, we do not expect to meet the revenue guidance we provided for the March quarter.”

SEE ALSO:

McDonald’s 

In a recent earnings call, Chris Kempczinski, McDonald’s president and CEO, commented: “The situation in China is fluid and concerning. Right now, as you would expect, our priority is on our employees and customers and ensuring we do everything we can to ensure they’re safe and taken care of.” At the end of January, McDonald’s closed approximately 300 restaurants in China, however, Kemczinski stressed that “3,000 restaurants in China remain open.” 

Burberry

The coronavirus could cost the luxury industry over US$40bn in revenue. Companies such as Burberry, Ralph Lauren, Coach and Capri Holdings have already told of the significant impact the deadly virus has had on business. Burberry has closed 24 of its 64 total stores in mainland China, while the other 40 remain open on reduced hours and with substantial footfall declines. Speaking to Business Insider, Burberry CEO Marco Gobbetti said: “The outbreak of the coronavirus in mainland China is having a material negative effect on luxury demand. While we cannot currently predict how long this situation will last, we remain confident in our strategy.”

For more information on all topics for Procurement, Supply Chain & Logistics - please take a look at the latest edition of Supply Chain Digital magazine.

Follow us on LinkedIn and Twitter.

Share

Featured Articles

Kinaxis: The 'Customers' Choice' for Supply Chain Planning

Kinaxis has been recognised as a Customers’ Choice in the 2024 edition of Gartner’s ‘Voice of the Customer’ for Supply Chain Planning Solutions

Why Coupa has been Named a Supply Chain Leader by Forrester

Coupa has been named a Leader in The Forrester Wave: Collaborative Supply Networks, Q4 2024, demonstrating its prowess facilitating supplier collaboration

Trick or Treat: Inside the $11.6bn US Halloween Supply Chain

Supply Chain Digital discovers what spooky surprises lie in store for the supply chain and logistics professionals who make Halloween happen every year

Why Vanderlande has Agreed to Acquire Siemens Logistics

Logistics

Procurement & Supply Chain LIVE: Sustainability – The Agenda

Sustainability

Maersk & Danone: Partnering Towards Greener Logistics

Sustainability