LONDON--(BUSINESS WIRE)--In the wake of the impact of COVID 19 on the industrial scenario, SpendEdge, a global procurement market intelligence firm, has announced the release of its whitepaper that assesses the implications of government policies on the personal protective equipment market in terms of its supply chain and advises measures to combat the predicted supply chain disruptions in this market.
The impact of COVID 19 on the personal protective equipment has exposed the unpreparedness of enterprises to cater to an unprecedented demand surge. In response to WHO’s sanitation guidelines and the requirement from healthcare professionals attending the infected patients, a range of personal protective equipment such as sanitizers, medical masks, gloves, ventilators is hitting the bottom of their repositories. This visible instance of supply chain disruption in the personal protective equipment market is getting worse with the rigidity of government policies pertaining to the import and exports of essential medical components. Levying of import tariffs and export restrictions are adding to the supply crisis in this market in the wake of the impact of COVID 19.
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What are the possible implications of government policies on the production process in the personal protective equipment market that is in its fifth gear to fight the impact of COVID 19?
Government’s highhandedness in levying tariffs
On account of being one of the top exporters of personal protective products, global enterprises in the personal protective equipment market are heavily reliant on the exported medical components from China. While the Trump administration has exhibited its intent of relaxing import tariffs by announcing a 90-day deferral of certain duty payments of a range of medical products imported from China, it declined the request of rolling back Section 301 tariffs on a wider range of personal protective equipment imported from China. This will result in the procurement price hike for enterprises in the market that will induce them to cut short their imports.
Exports restrictions imposed by the government in response to the impact of COVID 19
To address the sudden surge in the demand for protective equipment, a majority of countries have risked a breach of the basic principle of the GATT 1947 agreement and have restricted the export of medical components and equipment. This has created major supply chain disruptions in the personal protective equipment markets across countries that are heavily reliant on the medical imports. Protective equipment and respirators are some of the protective equipment types that are currently restricted to be exported from some of the EU member states which are seen as an aftermath of the impact of COVID 19 on the civilization.
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Strategies to Restore Supply Chain Despite the Negative Implications of Government Policies on the Personal Protective Equipment Market
Selection of ideal distribution channel
Considering the uncertain supply scenario, it is prudent of buyers to procure through e-commerce (supplier's website). This will enable an offshore buyer to procure devices directly. It is necessary for buyers to evaluate suppliers’ distribution network. This will testify the latter’s ability to offer supply assurance even during situations of emergency.
Assess the level of risk management measure implementation of suppliers
There is no doubting the fact that supply chain disruption will continue to be a strategic business risk in the personal protective equipment market that will herald serious business downtime. This makes it imperative for buyers to assess the level of adoption of risk management measures by suppliers to predict and mitigate any potential supply risks. Suppliers are expected to leverage supply chain management powered by cutting-edge technologies such as AI, big data and machine learning to have real-time visibility to strategize and risk mitigation measures.
Engage with suppliers that can meet demand variations
Buyers are advised to engage with suppliers who have sufficient spare production capacity to meet any ad hoc variations in product demand. This will, in turn, enable buyers to reduce procurement time in such cases, that would otherwise be required for selecting a new supplier and check adherence of its products to quality and regulatory norms.
Explore our digital procurement platform for free to know more about our supply chain risk mitigation measures that can help your procurement team address the negative implications of government policies on the personal protective equipment market in the wake of the impact of COVID 19.
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