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The global fashion business journal

Sep 29, 20204:57am

Textile, the most exposed supply chain by the coronavirus

International giants fear that the stoppage imposed as a precautionary measure to the expansion of the coronavirus may affect their supply chains, according BDO.

Mar 4, 2020 — 5:38pm
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Textile, the most exposed supply chain by the coronavirus

 

 

Textile, the most threatened sector by the coronavirus. The crisis caused by Covid-149 has made international giants fear tax breaks as a precautionary measure to the expansion of the coronavirus may affect their supply chains, according to the report The current challenge of the supply chain, prepared by BDO.

 

According to the study, globalization is, together with market volatility and growing consumer demand, the factor that complicates the production process. Globally, the textile, technology and household goods industry will be the most affected. 

In fact, the textile industry is one of the sector that depends the most on China, a region that concentrates 54% of fashion production. In the case of technology, 46% of the production is carried out in the Asian country. 

 

 

 

 

The organization establishes a series of steps with the objective of mitigating the consequences of the impact. First, understand the behavior of the disruptive models applied to the supply chain, and establish the time point at which the sudden irruption is found.

Next, the initial impact of the disruption should be estimated to model the next actions and avoid further damage. Once the situation is evaluated, according to BDO, the rest of the supply chain must prepare the organization for recovery.

 This implies the search and homologation of new suppliers, finding alternative transport models, determining what references are available and selling products built from those references.   

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