ROUGH-TEAMPRES.pptx

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    Supply Chain Issues from Shenzhen lockdown of 2022

    Presenters: 

    Brittany Green

    Shenzhen Background

    The most populous city in China

    "Technology Hub" of China

    Supplies most technology companies with product manufacturing

    Shenzhen lockdown began in March 2022 from Covid outbreak

    Lockdown halted and slowed manufacturing and supply chain

    Shenzhen Lockdown Impact

    Led to many manufacturing plants halting production

    Supply Chain paralyzed by minimization of goods produced

    Regional port closed and is not processing shipments

    Incoming shipment​ halted furthering supply shortage

    (insert picture from britt's slide)

    Shenzhen Supply ChainLocal Impact

    Covid-19 outbreak spreads sickness locally

    Workers were sent home from lockdown

    Businesses could not function without employees

    Local shortages from lockdown affect community

    Low supply led to an increase in prices and heighten demand

    Major suppliers impacted by lockdowns

    Tencent – Apple's oldest & largest supplier

    Huawei Technologies – Second largest smartphone manufacturer

    Foxconn- The world's largest electronic manufacturer

    BYD (Build Your Dreams) – Large vehicle part manufacturer

    Volkswagen & Toyota

    Foxconn Factory in China

    https://nypost.com/2022/03/14/china-lockdowns-apple-toyota-and-volkswagen-close-factories/

    Foxconn – apple supplier in shenzen- impact

    Apple's supplier, Foxconn is located in Shenzen

    There were fears that this lockdown will impact the supply of Apple devices, resulting in shortages and loss of revenue.

    Wedbush analyst Dan Ives estimated that if Covid restrictions persist for two to three weeks it could hurt overall iPhone production by 1% to 2% for the quarter, in an interview with Yahoo Finance.

    FOXCONN – APPLE SUPPLIER IN SHENZEN- IMPACT

    In response to this situation, Foxconn came up with the following plans:

    Foxconn decided to shift more production to its plant in Zhengzhou, which has earned it the nickname of iPhone City.

    Foxxonn also put up its new Chennai plant in India to be be ready for production

    Foxconn also started talks to set up a new plant in Saudi Arabia.

    As of March 16, the Shenzen plant began limited production under strict guideline of the authorities.

    Vehicles & Vehicle Parts Supply Chain Issues

    BYD battery factory paused production

    Toyota & Volkswagen plants suspend production

    20% of WV's total production in China affected

    50% of Toyota's total production in China affected

    Production lockdowns result in inflation & supply chain blocks

    Toyota Manufacturing Plant

    https://www.just-auto.com/news/toyota-announces-further-stoppages-in-japan-china-this-week/

    Yantian Port congestion from Lockdown

    Yantian International Container Terminal serves most suppliers in Shenzhen

    Processes approx. 90% of China's Electronic shipments

    Lockdown preventing goods from entering or leaving

    Factories & distribution centers rely on Yantian Port

    20,000+- containers blocked from leaving or entering the port

    Yantian Port – Guangdong Province

    https://www.shiplilly.com/blog/yantian-port-congestion-how-can-shippers-navigate-another-major-supply-chain-disruption/

    Shenzhen Lockdown Recap

    Lockdown of 2022 affected many aspects of business 

    The local community's life affected

    Goods like electronics, cars, and phones affected

    Incoming and outgoing shipments from regional ports affected

    Overall affects the whole world in some way

    Sources

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