Business updates

Covid-19 and its impact: recommendations

Covid-19 and its impact: recommendations

Trade 03 Mar 2020

The MCCI is monitoring closely the impact of Covid-19 and requests members to come forward as soon as possible in case of any disruption in the supply-chain.


The MCCI recommends the following:


- Identify key suppliers in areas affected by Covid-19

To analyse whether any of the key suppliers, distributors or warehouses are located in main affected areas.


Secure alternative sources and increase inventory levels

Activate mitigation measures and start securing alternative sources from elsewhere in or outside China and increase inventory levels.


Educate internal staff and key suppliers

Educate staff, key suppliers about potential impact and enforce precautionary measures so as to minimize impact on productivity and downtime.


Monitor potentially disruptive supply chain risks

Use real-time supply-chain risk monitoring tools to assess the impact of government shutdown in industrial areas as well as potential disruptions in transport and logistics


Encourage dual-sourcing strategies for key companies

Identify alternative sources for products/raw materials and undertake cost-benefit analysis to assess added costs for sourcing from different regions


Develop contingency plans for supplier outage

Work on contingency plans and prepare for any long-term impact of Covid-19, including factory closures or disruption in supply chain and logistics