When should we do when order backlog 90%

Date: 2020-02-12 Compiler:

When should we do when order backlog 90%

Affected by the new coronavirus epidemic, many foreign trade enterprises have encountered challenges in production and trade. So, how much has the epidemic affected export-oriented enterprises? How should the enterprise respond?
Difficulties that export-oriented companies are facing.

China has issued two notices to delay working date this year. If the workers are unable to leave at home, the factory will not be able to start work on schedule, and orders will not be delivered to customers on schedule. To make matters worse, if you don't get understanding from your customers, you may lose them.

Since the WHO defined the outbreak as an international public health emergency of concern, there have been immigration controls in 71 countries, and many countries have introduced adjustments (cancellations) to flights and even banned entry.

In addition to air routes, the impact of maritime transport has also come. Currently, Singapore Port has launched strict quarantine procedures for all ships that have visited the Mainland within 14 days. The Ministry of Health of Malaysia has adopted a number of precautionary measures at the immigration department to uniformly treat ships from China.

For export-oriented enterprises, unsmooth product transportation will undoubtedly make the normal progress of trade even more difficult.

Yet the salary must be paid, the rent of the venue must be paid, and the loan interest of the bank must be paid.

Facing PHEIC, what should export companies do?

So how do enterprises deal with this emergency, here are some ways of doing.   

Seek help from government and association.

Central and local governments have issued supportive policies in order to help export-oriented companies. Local associations have provided guidance as well. The city's foreign trade associations are also actively contacting member companies to understand the situation, and to seek supportive policies from the provincial departments. At the same time, government has arranged emergency meetings to provide guidance to enterprises.

And for enterprises ourselves, cultivate internal skills and actively self-help is strongly suggested. Here are a few things we can do:

1. Pay close attention to national policies and respond actively. Contact local associations to collect information and cooperate accordingly. The main reason why some foreign companies have cancelled trade with Chinese enterprises is that they do not understand the what prevention have done to restrict the spread, which has caused panic. Therefore, foreign trade enterprises should cooperate with the government for epidemic control. Openness and transparency, and adequate disinfection of commodities will help reduce losses in foreign trade.

2. Make enterprise personnel arrangements in advance, make all preparations for resumption of work, and use this period to consolidate your core competitiveness. For example, take stock of existing inventory, sort out material vacancies, and prioritize the supply of materials used in the production of existing orders (if the materials are stable, you can prepare the key materials for the next month in advance to prevent the outbreak of orders and tight supply). According to the production arrangement, calculate the required personnel and shifts, adjust the personnel work, in the meanwhile, clarify the transportation situation of the logistics company.

3. If foreign trade enterprises want to obtain long-term development, they must re-examine and integrate marketing methods, and strengthen the brand publicity and the international influence of the enterprise.

4. Rethinking business mode. In the past, companies that have been mainly engaged in foreign trade business can try to develop domestic trade business, while those that are mainly based on offline business can take the opportunity to test the online market, so as to improve their ability to resist risks.

Trade- oriented companies shouldn’t be too anxious about the situation but to take this opportunity to cultivate your internal skills and actively prepare for the major international exhibitions that will be held in the near future.