The Impact of COVID-19 on the Global Chain Supply Management
The Impact of COVID-19 on the Global Chain Supply Management. The emergence of COVID-19 shuddered the whole world as the pandemic created massive disruptions across the global economy. Most companies shut down while schools and other institutions moved online. Systems that continued working had to use protective equipment to avoid transmission. Consequently, the pandemic emanated unequal financial crises around the globe. Some companies prospered because the goods they supplied were essential during the period, while others faced major losses due to disruptions in the global chain supply.
China and other distributors encountered supply disruptions because most states enforced lockdowns.
The COVID-19 pandemic began in China, the main manufacturer and distributor worldwide, which affected the supply of goods. According to Magableh (2021), the emergence of the coronavirus disease was the start of the global supply chain chaos (p. 363). China and other distributors encountered supply disruptions because most states enforced lockdown measures to mitigate the spread of the virus. Due to lockdown and travel restrictions, consumers experienced a delay in goods supply. In addition, the high demand for goods affected the quality, following the unavailability of raw materials and a workforce shortage. The scarcity of goods led to the fluctuation of prices. Meyer et al. (2021) claim that, while supply disruptions existed earlier, the pandemic may have accelerated the issues, making it impossible to manage the risks in the global supply chain (p. 2). Conclusively, the emergence of COVID-19 caused disruptions in the global supply chain, hence impeding the global growth and development of the economy.
Contrary to the disruptions in the global chain supply management, some effects have been pragmatic. The pandemic has enabled most industries to create new ways of restructuring the global chain strategies, making it more resilient and sustainable. McKinsey (2020) reports that 93% of the leaders are in the process of increasing supply chain resilience. Most companies have advanced ways of enforcing new supply chain agility. Likewise, increasing investments in supply chain technologies like analytics and Artificial Intelligence (AI) can enhance agility, further gaining a competitive advantage in the markets. However, using the new technology needs an autonomous supply chain and a connection across risk management (Harapko, 2023). Risk management involves identifying, assessing, and preventing risks relating to the supply chain. The plan to develop new strategies for supply chain management will improve resilience, sustainability, and the relationship between the suppliers, consumers, and stakeholders.
The emergence of COVID-19 created uneven interferences in the economy, whereby some companies thrived while others encountered major losses. The pandemic caused disruptions in the global chain supply as it heckled the production and distribution process. The disruptions led to a shortage of raw materials and ready goods, hence the soaring prices of the available products. Most supply-chain leaders have invented strategies to boost agility to sway the disruptions, which will help build resilience, sustainability, and collaboration between producers and consumers.
Alicke, K., Gupta, R., & Trautwein, V. (2020, July 21). Resetting supply chains for the next normal. McKinsey & Company.
Harapko, S. (2023, January 6). How COVID-19 impacted supply chains and what comes next. Ernst & Young, https://www.ey.com/en_gl/supply-chain/how-covid-19-impacted-supply-chains-and-what-comes-next
Magableh, G. M. (2021). Supply chains and the COVID‐19 pandemic: A comprehensive framework. European Management Review, 18(3), 363-382. https://www.ncbi.nlm.nih.gov/pmc/articles/PMC8014293/pdf/EMRE-18-363.pdf/?tool=EBI
Meyer, A., Walter, W., & Seuring, S. (2021). The impact of the coronavirus pandemic on supply chains and their sustainability: a text mining approach. Frontiers in Sustainability, 2(631182), pp. 1-23. file:///C:/Users/HP/Downloads/frsus-02-631182.pdf