Let’s break the problem down into sub-categories and examine the components one by one:
- Chinese service providers postponed dates for re-launching tasks: Initially, Chinese organizations extended their New Year holidays as they hoped the case would level out. Tragically, the infection continued to spread, and there was no chance of workers returning to their jobs on 10 February. It is estimated that they will have to wait another two weeks for everything to return to the original operation.
- The US Postal Service suspended all shipments to China and Hong Kong, and more than 70 carriers canceled their flights to China.
- Shipments progressing China will be influenced too because of limited aircraft movement.
- China’s residential dispatch administrations have likewise been distorted in the infection. This is the most probable reason for interference with providers’ activity. However, on Saturday, the State Post Bureau asked the nation’s significant messenger organizations to reestablish more than 40 per cent of their ordinary taking care of limits by the centre of this current month.
- A leaked Amazon email revealed that the company also stores products made in China. All this against coronavirus fears, despite the organization declaring that activities “could not be disturbed” by an episode of infection. The issue in the world is so panicked that people in some countries dare not order any “Made in China” products, and this fear is not due to the delay in delivery. This situation is a bit ambiguous, because what can other e-commerce players do? Amazon has no idea what to do with the current situation (but wait, he does: he does nothing), and leaves the goods inside the infected country.
Tip for e-retailers: If you are involved in commerce and possibly running campaigns, you should definitely inform your customers about the situation. Half of the panic about products doesn’t have to be taken so seriously, but it’s worthwhile to reassure your customers or possibly refund the price of prepaid products. Bad reviews and ratings can also affect your business. Educate your clients to strengthen the relationship that connects you to them. This won’t tackle the issue, however giving them that you haven’t overlooked their shipments will cause them to feel better. This, thus, will ideally prevent them from leaving terrible surveys that will hurt your Page Score and business notoriety when all is said in done.
A weakness of Globalization
For now, this is the only method we can advise right now. As long as big companies like Amazon or Apple have logistical problems, small e-retailers can’t do much.
Perhaps this vulnerability motivates us to move away from full globalization. Globalization is not a bad thing, but such an epidemic reminds us that we should strengthen localization. In the pre-modern world, production and transportation covered smaller areas and thus made humanity less vulnerable. Nowadays, if an electronics factory burns down, it has an impact on the trader in the rest of the world. This is not okay.
An alternative B-plan: Cosmo-localization
An alternative solution that would reduce our global vulnerability for the future is called cosmo-localization. We can associate the term with the name of Jose Ramos, and in a nutshell, the solution is that design is globalized, but manufacturing itself is localized. Another decisive factor is the reduction of logistics costs and the resulting lower carbon monoxide emissions. But that’s another story.
We hope this unpleasant world-shaking event will slowly be a thing of the past, both in health and business perspective.