Coronavirus flash survey
Projects have to be postponed at additional cost - precautionary measures perceived as necessary
- One in three find media reports exaggerated
- Measures perceived as necessary by governments or airlines
- Almost one in five is afraid of production downtime
- 41 percent have to postpone projects due to additional costs
- Every third company loses money because it cannot supply customers
- Companies start hoarding
Düsseldorf, February 7, 2020 - How is a supply chain supposed to function if people are afraid of infection, logistics are cut off from one day to the next and decision-makers can no longer see each other? And are these fears justified or exaggerated? In order to shed light on the situation, the Kloepfel Group's procurement consultants surveyed 243 specialists and managers from German industry and retail as part of an online flash survey. The random sample survey was conducted across all sectors from 03.02.2020 to 06.02.2020.
Majority has connection to China
The participants were able to give several answers to this question. For example, 81 percent said that they are supplied by important suppliers from China. Around one in three (35%) work with important customers there. A third (33 percent) produce directly in China. 4 percent have no connection to the giant country.
One in three find media reports exaggerated
At 63%, the majority of managers and professionals surveyed stated that they are happy to be informed by the media. Only just over one in three (37%) find the current reporting completely exaggerated.
Measures by governments or airlines necessary
58% consider the measures taken by governments and airlines to protect against infection to be sensible. In contrast, 42% think the measures are partly sensible and partly excessive. However, all respondents generally believe that precautions must continue to be taken. No one thought the measures to combat the coronavirus were unnecessary.
19 percent are afraid of production downtime
The majority (42%) have not yet been affected by supplier failures. Although 28 percent have experienced supplier failures, they are able to activate alternative suppliers in the short to medium term. 19 percent fear that supply bottlenecks will bring their production to a standstill. Meanwhile, 9 percent are experiencing supply bottlenecks, but these will not lead to a production standstill. Only just over 2 percent of participants are not affected by supplier shortages in any way.
41 percent have to postpone projects due to additional costs
Here too, the vast majority of respondents (42%) report that they are still able to carry out projects as planned. However, at just under 41%, almost as many projects have to be postponed, which costs them a lot of money according to the survey. 9 percent are unable to adhere to project plans and fear that this could even jeopardize their existence. A further 8 percent have to postpone a planned project, but this is not a problem.
Purchasing advice for the economy records numerous urgent requests - companies hoard
Marc Kloepfel, CEO of the purchasing specialists at the Kloepfel Group, states: "Initially, we received many requests for face masks from our customers with sites in China. However, as the situation is not improving, we are now receiving many rush orders for other product groups. Companies are starting to stockpile and are filling up their warehouses as a precaution. This is not only affecting the manufacturing industry, but also the retail sector."