The global supply chain was hit hard during the pandemic. The spring blockade of the Suez Canal also contributed to this. When it seemed that the world was right in this respect, another blow was dealt.
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This time it was led not by virus or man, but by nature. China, the most important country in the world when it comes to widely understood production, became its victim. To be precise, we are talking about the central part of the country, which has been hit by rainfall unheard of for decades in recent days. In the provincial capital of Henan - Zhengzhou, in just a few days, between Saturday and Tuesday, there was 617 mm of rain per square meter, which is slightly less than the entire annual average for this area - 640 mm.
SUNK DREAMS
With this amount of water, the streets of Zhengzhou literally turned into rivers and the city was paralyzed. In the human dimension, it was a catastrophe that resulted in the death of many people. The global dimension, seen more broadly, has an economic overtone, perhaps even more acute.
When we wrote in March about the importance of the "viral blockage" in the context of the supply chain, which was overlapped by the problems of the Ever Given container ship, the matter looked very serious. However, this could not be surprising, because although today the production behind the Great Wall is not as tempting as it was a few decades ago, it must be remembered that Beijing is still responsible for over 21 percent of imported goods to nearly 200 countries around the world. It must and still makes a huge impression. It is simply difficult to argue with such numbers.
In these few months, the global economy has taken a second breath, but that doesn't mean someone has pressed the reset button and everything has returned to its 2019 state. Nothing could be more wrong. Supply chains remained weak and uncertain. Will the weather disaster in China prove to be a decisive blow for them?
FEARS OF GIANTS
All indications are that the flood will effectively drown the dreams of many entrepreneurs who started to recover or were close to this goal. Already today, very disturbing reports are flowing in from Henai. In the province, such giants as IKEA, Nissan, Foxconn and FedEx have their plants and centers. Zhengzhou itself is referred to as the "iPhone City" and there is no exaggeration in this case, because this is where the world's largest Apple factory is located.
Tim Cook spoke on the matter on Twitter and immediately after the first information from China and made it clear that Apple will financially support the city's aid operation. This will be necessary if an army of over 350,000 workers from many factories important for the global economy is to return to their positions. To understand the magnitude of the phenomenon even easier, it is worth adding that Zhengzhou is the base for over 300,000 Nissan cars and the engines used in them. It is the largest plant of this type in central China.
Listing only the top players in the context of a catastrophic flood is, of course, a simple procedure to draw the scale. However, there are hundreds of other plants in the Henai region that have had to stop production. Also those that supply components for industrial automation. Already today, the deadlines are getting longer, and if the situation behind the Great Wall does not change, and according to meteorologists it is not so certain, then the situation may only worsen soon.
THE ONLY SOLUTION
What can be done in such a situation? What should you always do when running your own business? Like in chess, plan a few moves ahead, and also - and this is probably even more important issue - put on proven partners. This was argued by, among others Mary Long, director of the Supply Chain Forum at GSCI. - Companies today have to focus on other aspects. The new advantage is now the certainty of deliveries and the reduction of their time - she said.
However, in order for the dependency of certainty to exist, there must be trust between those concerned. For this you need not one, but dozens and hundreds of well-made deliveries. There is a particularly strong emphasis on this in Automation Trader. Storing and importing hard-to-reach parts, as well as close cooperation with the largest suppliers in the industry mean that the company can bring this certainty on its banners. - Reliability and speed of delivery is one of our distinctive features and something to which we take very seriously - said Maciej Szczotka, CEO of the company. - Time is money. Every minute or hour of stopping production generates losses. Our task, in turn, is to limit them. It is absolutely crucial for us, he added.
The last several months have shown us that the threat can come from all sides and does not necessarily have to be related to a virus raging around the world. A sinking wave can also cause normal rain. It is worth being prepared for it. It is worth betting on proven partners. Such as Automation Trader.
