It has been more than a month since COVID-19 occurred in early January and caused widespread concern worldwide. On January 30, the WHO declared the virus outbreak a public health emergency of international concern (PHEIC), which aroused great attention of people around the world.
How does COVID-19 affect the phone repair parts supply chain? BIZBEE will answer the questions of the customers most concerned about in the industry.
 
1.  How long will the COVID-19 last?
It is expected to end in early April.
Under the Chinese government's quarantine measures, the spread of the outbreak has now eased. Zhong Nanshan, the leader of the high-level expert group of   the Chinese Health Commission and the well-known Chinese respiratory expert, said that the COVID-19 cases have declined in some areas, and the peak is expected to occur in mid-to-late February, and may end in early April.
 
2.  Will COVID-19 be transmitted through the goods?
No.
COVID-19 is a respiratory virus that is mainly transmitted by droplets, which is, human to human. The WHO has declared that it is safe to receive packages from China.
 
3.  Is the repair parts supply chain affected?
The supply volume and delivery speed can be affected.
To prevent COVID-19 from spreading on a large scale, the Chinese government has adopted strong quarantine measures, restricted population flows by sealing cities, villages, and delaying work resumption. Due to the government’s quarantine control, most companies failed to resume production.
With Foxconn, as an example, only 50% production capacity can be restored at the end of February, and 80% production capacity can be restored at the end of March.
For the mobile phone repair parts industry, from the data we surveyed, most suppliers have only a small amount of inventory. It is expected that the supply will be very tight in February, March and April, and it will not be eased until May at the earliest.
 
4.   How is the current supply situation of BIZBEE?
We have more advantages than others on supply volume and delivery speed.
Because of our early forecast, the outbreak will make a great impact, we prepared inventory reserves and personnel rework in advance, which can meet the order requirements of some customers.
However, due to the impact of the overall capacity environment of the industry, the supply still appears insufficient, but compared to other companies, our supply capacity and speed will be much better. Customers with insufficient inventory, kindly advise you to communicate with BIZBEE in advance for stocking.


5.  How long will the goods be shipped out?
About 3 days. 
For customers who do not have special requirement on goods, BIZBEE can ship as usual from February 15th, which means the shipment can be arranged within 3 days since the confirmation of the customer’s order.
 
6.  What’s the future price trend?
Keep increasing over a period of time.
Due to the outbreak isolation control measures, the inability of the production, which has caused the risen of the labor cost and raw material prices in the entire industry, as well as insufficient stocks. These three factors have led to the risen of the product prices. Currently, we have received information from many upstream suppliers that raw material increases, so it is expected that the supply will be very tight in February, March and April, and product prices will continue to go up. No matter how the upstream price will rise, BIZBEE will strictly carry out transactions at the prices promised to our customers and insist on protecting the benefits of our customers.
 
7.  Will the products quality be affected?
No.
Even in the current difficult period of resuming the production, BIZBEE still arranged 50 professional quality inspectors to fully inspect all the goods. Quality is the basis for the company's survival. The company adheres to a consistent attitude and strictly controls quality.
 
8.  How BIZBEE protect our employees?
BIZBEE protects all employees with strictly following the government’s instructions.
BIZBEE has prepared sufficient materials for outbreak prevention and control, such as masks, disinfectants, and temperature guns. We check all the employees’ temperature every day before and after work, registers employees' route of action, and develops outbreak prevention and control manuals to guide employees to protect themselves. BIZBEE has always been people-oriented. And strictly implements safety management in the workplace to protect the safety of our employees.
 
9.  What should repair shops do at the moment?
We kindly suggest repair shops make orders plan in February.
According to the previous analysis, price increases is the inevitable trend. In order to avoid the risk of sharp price increases in March and April, it is recommended to prepare a stock plan in February and seize the opportunity, avoiding to buy at high prices in March and April or even no stock later.
 
Above are related questions and answers we have sorted out for our industry customers and peers. Any other questions, please kindly send a private message, comment or email to ivy@bizbee.com, BIZBEE will try our best to service you.

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