Impacts of COVID-19 on the Combina Supply Chain

On March 11, 2020, the World Health Organization (WHO) declared a global pandemic due to the outbreak of COVID-19. As of this post, 114 countries have reported cases of the coronavirus with a total of 118,000 confirmed cases and nearly 4,300 related deaths.

This worldwide crisis has undoubtedly had an effect on supply chains all across the globe. Below we’ll take a closer look at some of the challenges companies are facing and how Combina Global is positioned in the face of this global pandemic.

First and foremost, we are staying in close touch with our sourcing partners to ensure their continued health and safety as the virus moves through the globe, impacting us all.

The effects of COVID-19 on global supply chains

The effects of the coronavirus on businesses and factories worldwide cannot be understated. Due to the virus, factories, companies, and manufacturers have essentially shut down all production, disrupting global supply chains.

At present, it’s still difficult to assess the extent of damage COVID-19 will have long-term on supply chains and the economy in general. However, companies are already seeing short-term repercussions, including:

• Factories operating at reduced capabilities
• Backlog in orders
• Labour shortages
• Disruption in the supply chain
• Delay in transporting products
• Cash flow pressures
• Traffic and mobility restrictions

The hardest hit industries due to COVID-19 include travel, tourism, airline, food, hotel, and cruise sectors. With travel restrictions in place and most of the world quarantined, service and retail industries have felt the economic impacts the quickest.

But this is just the beginning. The after-effects will no doubt trickle down towards all industries including tech, construction, financial, and more. Layoffs and high rates of unemployment will inevitably follow as consumer spending dwindles and company revenue streams dry up.

In light of these immediate challenges, businesses are forced to respond swiftly and in creative ways to stay afloat.

How businesses are responding

With the dire outlook, there is a silver lining to all of this. China, the largest manufacturing economy and exporter of materials, is in restart mode after weeks of factory shutdowns. 

In fact, as of March 1, most large companies in China are already operating at 90% capacity. Additionally, the transportation of goods from factories to shipping ports are steadily increasing at approximately 60-80% capacity.

March 19, 2020, marks the first time in China where no new cases were to be found – a further indication of signs of recovery. As China slowly ramps up its production, the rest of the world will gradually follow suit.

Other businesses are also taking proactive measures as they look to combat the dire situation. In many instances, companies are looking into alternative suppliers to meet fulfillment orders. Those already with a diversified supply chain system in place take less of a blow in regards to supply chain disruptions.

Certain manufacturers are even refitting their production lines to make safety equipment, such as masks and medical clothing, to help combat the virus. For example, SAIC-GM-Wuling Automobile Co Ltd, a Chinese automaker, decided to switch to producing safety equipment when their business dropped 90% in February.    

Combina Global’s response to COVID-19

At Combina Global, we are working hard with our global suppliers to minimize any delays or interruptions in delivering materials for your job. Fortunately, our multi-sourcing strategy minimizes over-dependance on any one primary supplier. Our measures enable us to keep our clients happy by committing to deliverables on time and on budget. 

Due to our strong network of international partners and manufacturers in China, we have the advantage of maintaining a relative ‘business as usual’ status in the midst of the economic chaos. To date, our production lines are operating at nearly 100% capacity. This means, despite the global pandemic, we at Combina Global are still able to continue providing sourcing solutions for all your project needs. 

As we’ve seen other businesses adapt to the ever-changing pandemic, Combina Global has also positioned itself to contribute to global relief efforts. In particular, we have added much needed safety equipment such as safety masks, latex safety disposal gloves, and hand sanitizer to our procurement line. This critical supply safety equipment will help contribute to Canada’s fight in the ongoing outbreak.

Everyone has a role in combating this outbreak and Combina Global is doing whatever it can to assist in the cause. At the same time, we are continuing to maintain the high level of services to our clients that we are known for. 

Our promise

Combina Global is a design, procurement, and material sourcing company with one goal in mind – offer premium materials at unbeatable prices. Our expertise includes providing material sourcing solutions for the multi-family residential, commercial, and professional & trade industries. With over 40 years of construction and procurement experience, our team knows what it takes to get the job done right. 

We tailor all our services to your unique project needs. If you’re looking for supplies for your next job, contact us today for your free consultation.