Chinese Product Supply Secure says Rojo Pacific

While the tourism industry may be one of the first – and most visible – casualties of the COVID-19 (novel coronavirus) outbreak, the impact is being felt more widely, with leading Australia supply company, Rojo Pacific, saying the fact that some of its product is sourced from China has led to enquiries from customers.

Like much of the concern around the virus, however, Managing Director John Wright, says that, at least as far as Rojo Pacific is concerned, any panic is unwarranted, with many of the rumours circulating ‘completely unfounded’.

“Obviously COVID-19 has been on our radar as some of our product is manufactured in China, and we have been concerned for the safety and wellbeing of our colleagues there, even though they are a long way from the epicentre,” he said today, “however the impact on business has been negligible.

“The Lunar New Year holiday always has an effect on our lead times – much like Australia over the Christmas break, most business in China take a break for the celebrations – so there is always a delay to delivery schedules over that period. This year, lead times are perhaps slightly longer than usual, simply due to the delayed return to work for our Chinese suppliers, but so far it’s not vastly different from our normal experience.”

In fact, COVID-19 appears to have had little, if any, impact on output, Wright explains, saying the companies which manufacture Rojo Pacific’s range of specialised textiles and wide-format printing media are operating with a plentiful supply of raw materials, are in full manufacturing mode, and are in constant communication with the Rojo Pacific team.

“Orders are being shipped as planned and, in Australia, our containers continue to be processed, cleared, and delivered to our warehouse. It’s business as usual,” he says.

More importantly, Wright says that his company, like most suppliers in Australia, has manufacturing and supply partners across the globe, reducing any exposure to supply chain interruptions in any one part of the world.

“We do have important manufacturing partners in China, but we also have major suppliers in Taiwan, Korea, Japan and Europe, so we’re far from being disproportionately exposed,” he says. “If there should be delays on product in future, we have plenty of options – for instance, we can source PVC Banner Vinyls from our partners in Vietnam and Synthetic Papers from our supplier in Taiwan.”

Wright says the company’s warehouse facility in Melbourne also carries between three and six months’ supply of most products, to safeguard against any interruption to supply.

“All kinds of situations can impact on international supply chains, so we always plan for a buffer to ensure continuity of supply to our customers,” he says. “We are fully stocked at the moment, though we’re not expecting to have to draw on those reserves as new orders have been placed and confirmed, with no delays expected at all.”

While his own company seems well prepared to meet any challenges delivered by COVID-19, Wright says the concerns of print service providers are understandable. He is keen, however, to shut down any unfounded rumours or panic.

“We understand that certainty of supply is of huge importance to businesses and that you will have questions in a situation like this,” he says. “But don’t just wait and worry. If you are concerned about the availability of any product which originates in China, I’d advise you to contact your supplier directly and have a chat. Certainly, that’s what I hope our customers will continue to do.

“Meanwhile, we are in constant communication with our partners in China so that we can ensure all our customers – and the wider market – are kept abreast of any new information or developments as the situation evolves.” concludes JOhn.