Firms told: Develop alternative supply chain

Bizmen urged to find local sources so as not to disrupt flow of goods in Cebu from NCR

CDN FILE PHOTO

CEBU CITY, Philippines — While the flow and supply of goods from Metro Manila in Cebu will not be greatly affected by the impeding community quarantine, businesses are encouraged to start looking to source their goods and other supplies locally.

Steven Yu, Mandaue Chamber of Commerce and Industry (MCCI) president, called on firms to develop an alternative supply chain.

Yu, in a statement sent to Cebu Daily News Digital, said they are projecting changes in the flow of supplies and other materials from National Capital Region (NCR) in the first week of April.

“We also expect some supplies from NCR to be affected starting the first week of April. However, we believe that there is an alternative supply available locally. We encourage all businesses to develop an alternative supply chain immediately,” said Yu.

In a separate event, Cebu Governor Gwendolyn Garcia suggested to firms in the province to look for alternatives in terms of sourcing their materials.

Garcia called on businesses to reconfigure their preferred transportation mode in order to keep goods flowing in Cebu.

This developed after it was found out that several supplies carried by airplanes might be affected due to lockdown in NCR.

CPA: No ban for supplies coming from Manila

Officers from the Cebu Port Authority (CPA), for their part, slightly eased concerns from businessmen when they announced that the community quarantine to be imposed on Metro Manila would not disrupt the logistics of materials.

They also said Malacañang’s announcement would not entail a ban of supplies arriving in Cebu ports from the country’s capital.

Based on figures from the Philippine Statistics Authority, Central Visayas, where Cebu is found,  brought in a total of P28 billion in domestic goods during the last quarter of 2019.

It is the region with the second highest value of inbound goods, most of which are delivered through the sea.

Hoarding disrupts supply chain

Meanwhile, the MCCI said the community quarantine on Metro Manila would add another wound Cebu’s tourism, which had been suffering since the onset of the Coronavirus Disease 2019 (COVID-19) last January.

Yu, however, remained hopeful that the island’s economic prowess, which had considered tourism as one of its ‘bread and butter’, would bounce back.

“These measures are necessary for the Philippines to control the spread of COVID-19 virus,” he added.

The Hotel Resorts and Restaurant Association in Cebu (HRRAC) has reported a 50 percent drop in occupancy rates in resorts, and a 30 percent decline in hotel occupancy rates.

In the meantime, the MCCI official encouraged the public not to hoard supplies because this would instead lead to a disruption in the supply chain.

“I would like to caution everyone against panicking or panic buying because it will just disrupt the supply replenishment. There will be enough supplies available for everyone,” Yu said.

“Also, we need to alter some of our lifestyle habits moving forward, by working towards conservation and avoid wasting resources,” he added./dbs