Tony sits on the Emeritus Council of Advisors for Supply Chain Asia and Chairman of the Transported Asset Protection Association Asia Pacific, a non-profit organisation.
He is former Director of Logistics Purchasing and Centre of Excellence for Lear Corporation Asia Pacific, the Leading Tier 1 global automotive manufacturer, having lived the last 7 years in Shanghai, China. Tony is joining us today to share his views on the Coronavirus situation and how it is impacting supply chains in China and globally.Listen to the full discussion here:
Connect with the Guests:
Tony Lugg: Linkedin
Some of the highlights from the podcast:
- Coronavirus crisis: 200 million workers have not returned to their jobs; 60% of companies did not have a contingency plan
- The automotive industry in the next 4 to 12 weeks.
- How the crisis is affecting the whole electronics manufacturing sector
- What can companies do to mitigate risk in their Supply Chains
- Other potential risk clusters: Korea, Japan, Italy
Show notes:
- [01:26] There was a survey done by the American Chamber in China in which they surveyed about 127 companies on the impact that they see regarding the crisis. Can you tell us a little bit about it?
- [02:29] 48% of the global operations have been impacted by the shut down. When you think that’s 50% of the American manufacturers operating in China.
- [03:15] Out of the 300 million migrant workforce, only 1/3 actually returned to work.
- [07:09] How do you see things spending out for the automotive industry in the next 4 to 8 weeks or 12 weeks?
- [10:27] The limitation with the tier suppliers is that most of these guys do not have any business continuity plans in place. So they will be suffering the same problems as leading manufacturers in terms of migrant workers coming back to work.
- [13:42] If you were in the shoes of some of these executives, how would you plan or sort of make sense and find solutions in this type of situation?
- [15:00] One of the things I realized is that if I could keep customers happy on both sides, I am winning.
- [16:46] Reach out to people in the market who are in the note, because even if your supplier can’t do it, there’s always somebody that has the solution.
- [17:46] How are the electronic manufacturers going to cope with this?
- [20:29] Guangdong accounts for 28.8% of the national total export share. So when you consider that Guangdong, some firms have been requested not to start production until March.
- [23:09] Do you think the recent event will lead to an economic crisis?
- [25:59] The world is dependent on China. That is true. Because 90% of the trade is done by sea.
- [29:01] What are some of the things that companies do, from a business continuity perspective from to mitigate risk?
- [29:36] 60% of the respondents from the survey by International Crisis Room 360 said that they had no business continuity plans for their China Supply Chain.
- [33:39] Do not only look at your production lines, but also look at your digital transformation and how you can automate more the processes.
- [35:09] Employ somebody who’s got that innovation and that knowledge on how to run a business continuity plan to make sure that you have a sustainable business going forward.
Soundbite from the Episode:
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