The pneumonia epidemic in Wuhan is spreading and raging around the world. Enterprises are facing the challenge of comprehensive resumption of work. Many garment factories have received urgent orders from customers to move from Chinese factories. They have been to and from China ’s 45-year-old Taiwanese garment factory for years. Orders are already happening ", but" capacity allocation "is the key to shipping at this stage.

Production bases in China, Southeast Asia, Africa and other global layouts. Apparel factory Xurong Group, which has more than 300 brand customers such as Gap, Zara, H & M, The North Face, and executive director Huang Guanhua said that the current inquiry level for transferring orders to Southeast Asian factories is indeed Very high, the target is the existing customers, mainly hoping to assist in the emergency deployment of shipments in the short term.

He said that fortunately, the group has "dyeing and finishing plants in China and Vietnam, and can flexibly allocate production capacity in emergency situations." Although it can "fire nearby", it only responds to orders with a late delivery date. I am afraid that "there is no way to block it for too long. If it is more than one or two months, it will become very tight. "

The pneumonia epidemic in Wuhan has hit many industries and plunged into a supply chain crisis. Faced with a low rate of resumption of work in China, it is difficult for garment factories in Southeast Asia to obtain raw materials. Huang Weiji, secretary general of the Textile Extension Association, said that although 90% of China's textile mills have resumed work, the rate of resumption is not satisfactory. Only 50%, "the problem of shortage of labor occurs every day," and the production capacity cannot be fully loaded.

However, not only the Chinese factories are short of work, but also the port is also in a dilemma of unattended delivery. "Taiwan transported materials in the past and no one came to pick them up."

In addition to the crisis of lack of work and materials, Huang Guanhua also pointed out the three major challenges facing garment factories at this stage. First, countries have different policies and policies on epidemic prevention. Manufacturers must abide by them. As a result, many middle-level overseas cadres "cannot go back or go back", and have encountered obstacles in operation and management.

Second, the problem between raw materials and suppliers. In the past, many companies have requested to achieve "zero inventory" management, which can reduce the advantages of capital occupation, material storage cost, loss, and risk of scrapping.

He said that generally speaking, the safety stock volume is more than one month to two months, and it is differentiated according to different items. However, it is currently difficult to purchase raw materials in China, which has a comparative advantage for those who usually have inventory.

Third, global distribution and diversification of risks. Huang Guanhua analyzes that companies face challenges every day, and they haven't been shocked for a long time. They are faced with various scenarios and therefore have the ability to cope with the global layout. However, he is full of worrying predictions. "Wuhan pneumonia really affects the hierarchy. The real impact may not be visible now, it may trigger the domino effect. "

For small manufacturers with insufficient cash flow, the continuous domino effect is quietly brewing, and has even happened. If the company can successfully survive this difficult time, good-quality enterprises will surely take it to the next level, but they may be eliminated.

Huang Guanhua said frankly that when he first set up a factory in Southeast Asia, he was mainly preparing for "expanding the scale of production capacity." It was not a comprehensive transfer of production bases. Although China's wages have risen and the US-China trade war has faced challenges, Chinese production is not a complete replacement in Southeast Asia. In addition, China's domestic sales market is still huge, and increasing the flexibility of deployment is the key consideration.

The textile supply chain, whether it is fabrics, yarns or other supply sources, still comes from China. Even after the impact of the US-China trade war, manufacturers have withdrawn from China and moved to set up factories in Southeast Asia. However, China's procurement costs are low, it has a price competitiveness advantage, and it is difficult to replace it. .

This time, New Crown Pneumonia spreads across the world and impacts all walks of life. Manufacturers only hope that the epidemic situation will stabilize as soon as possible, so that the production order will return to the normal track, and losses will be minimized.