How Catastrophic Risk Such as COVID-19 Could Impact Supply
Chain Industry?
Table of Contents
Introduction. 3
Literature Review.. 4
Discussion. 8
Impact of Covid-19 on global supply chains. 9
How Covid-19 affected Supply chain. 9
Supply Chain Disruptions. 10
Measuring Impact of Covid-19 on Supply Chain of the
World. 11
Recommendations. 11
Conclusion. 12
References
Introduction of How Catastrophic Risk Such as
COVID-19 Could Impact Supply Chain Industry?
Most of the time in some of the previous weeks, the
repercussion of the outbreak of COVID-19 as ben has taken more strongly with
the passage of each day. The fact that pedigrees of the virus has been
presented in china. In this, it has been serving to emphasize the damage from
the economic point of view along with the main percentage of supply chain
management has in the state of shock. In this regard, a survey has been made
from the Institute of Supply Cain Management in which it has clearly been
observed (Subhasmita, 2020) that 75% of
organizations as been said about the disruption within supply chain because of
Corona Virus which is associated with the transport limitation ss well as this
will also involve any arrangement of eventuality plan for more than half of the
companies which has been involved in the case of supply chain disruption which
has been moving back toward China. There are some of the major issues as been
presented in the field of manufacturing.
As manufacturing has been taken as one of the most
difficult procedures. As it has been observed that the pandemic of COVID-19 has
already given the major disruption in firms and societies. As well as the
worldwide effects of the supply chain have been attained as in the form of
critical situations and these effects (Eneko, Robles, & Lamprou, 2020)have been obtained in
two ways. In the initial part, they have an impact on the supply of inputs for
most of the production and traders all around the world and it is quite
significant because China has been taken as to be a great source of elements
and goods. As well as the lengthier plants of china and the universal pipeline
has been taken as in the meaning to feed developers and sellers. If the distraction
has still been present then it should have to be appending the operations. He
second one has been taken as china is to one of the largest markets of
supplying goods and services. Moreover, anywhere in the universe some of the
domestic economies which as bene based on china as in the form of consumer who
realizes the effects, as the customer in china limit their travel and ingesting
which has been revel in china's decrease the production.
Furthermore, it can also be said that supply will have
greatly affected by this pandemic. As well as the well-developed supply chain
has been developed to withstand some of the supplies and their changeable
demands. As in the form of a shortage of some of the medical items like tissue
paper, hand sanitizer, clipper, and the necessary household items. Moreover,
while making sure to continue the activities along with the medical supply
chain with the appropriate provision of food items which is the main concern
for the government. Along with the pharmaceuticals and the combination of
critical value chains and modifications in the product make for challenging
supply chain management.
Literature Review of How Catastrophic Risk Such
as COVID-19 Could Impact Supply Chain Industry?
As
stated by Ivanov & Dolgui (2020) in their research on the COVID-19 that has
affected the global supply chain of the world. The researcher is saying that the
ISN (intertwined supply network) is the total interconnected supply chain into
the secure provision of the markets as well as the society along with the
service and the goods or the raw materials for the production of the products. With
the structural dynamics, the intertwined supply networks are the open systems
since multiple behaviors may be exhibited by the companies through making
changes into the roles of the supplier of the material in the consistent or
even competing for supply chains. The services are provided by the ISNs as a
whole from the resilience positions such as communication service, mobility
service, or the food supply service, that are needed to make sure the survival
for long term. Furthermore, the consideration at the larger scale is required
by the survivability analysis at the ISN level as the supply chain's resilience
individually. The recent example of the outbreak of coronavirus (COVID-19) is
clearly showing the need for such kind of thing. When the resistance to the
disruptions extraordinarily, the new angle in supply chain resilience research
is introduced in the research study that needs to consider at the viability
scale. Furthermore, the contribution lies within the novel decision-making
environment conceptualization of the viability of ISN. Through the modeling of
the theoretic game dynamically, the researchers indicate the formation of
viability that resembles the ISN (Ivanov & Dolgui,
2020).
There are some of the vital two types of a commodity for
the foodstuff, primary crops likewise wheat and maize and some of the high-value
crops which involve fishery products, vegetable, and fruits. While the staple
crop production would capital intensive and holds high-value commodity which
has been taken as to be labor-intensive. (Dmitry, 2020) Despite from this
supply chain challenges for the principal crops which have been center
logistics, as well as the challenge of balancing high-value agriculture
commodity it needs stakeholders to address the empowerment of shortage of labor
and some of the logistic challenges which have been providing that these items
hold the increased level of perishability. In this regard, various meetings
have been held by the Agriculture Ministries of their countries in which UN
food and agriculture associations and the worldwide fund for Agriculture
development has been providing the statement on the impact of COVID-19. In the
statement, it has been mentioned that various logistic services that are
associated with agriculture must be taken as significant. Moreover, enhanced
efforts have been required to make sure that the value chain of food function
has been endorsed the manufacturing and presence of various secure and
nutritious food for all. In the difficult situation, the fact that the appearance
of the pandemic has been accorded with the autumn season has been considered as
the major harvesting time for the cutting of crops.
In this, it has been mentioned that while having
shocking news of pandemic there are some of the short-term variations have been
made in the supply chain industry, in this regard some of the evidence-based
points have been made in the latest situation of the pandemic which might be a move
toward long-term systematic shifts. (Jill , 2020)According
to some of the predictions it has been stated that China will lose its main
position in many networks of the supply chain within the most appealing markets
in the world. As it has been viewed the coronavirus has been enhanced the
tradition of American organizations which has been looking for the rearrange
supply chain closer to their home town and while changing them to decrease the
future competence threat by repositioning to ASEAN state such as Vietnam,
Thailand, Indonesia. Furthermore, the firms which have been associated with
textile, electronics and some of them who have been associated with energy have
been taken as more likely to be relocating area of their tasks in the
international trade. This would also be essential to the broader trend of
countries from other nations that have been viewing to displace their
amenities. Even though before the outbreak of coronavirus when it has been
leading in China. it can also be said that supply will have greatly affected by
this pandemic. As well as the well-developed supply chain has been developed to
withstand some of the supplies and their changeable demands. Despite this
supply chain challenges for the principal crops which have been center
logistics, as well as the challenge of balancing high-value agriculture commodity
it needs stakeholders to address the empowerment of shortage of labor.
Koshle,
Kaur, & Basista (2020) are describing in the research how to keep the
workforce safe without disrupting the supply chain and the businesses from
Covid-19, is that the important concern before the startups of the Indians. For
the headquarters employees of the company, it has been made mandatory by the eCommerce
major Flipkart through taking the playbook of China. It has made mandatory to
understand home for three days per week starting in March. The same
precautionary measures are being exercised by other smaller startups over half
a dozen. It is being calculated by the rulebook having the title of the COVID-19
precautions to provide help to the younger teams battle crisis among the startup.
The document, arranged by an individual from the network themselves, shares
update on coronavirus suggests prudent advances and furthermore records
clinics, in addition to other things. The world wellbeing association has
proclaimed Covid-19 a scourge. Up until this point, more than 126,000
individuals are contaminated by crown infection universally and very 4,600 have
kicked the bucket. In India, 73 positive instances of coronavirus are affirmed
up to this point given the size of its spread, no measure of alert is regularly
enough.
Under these conditions and during a
nation where telecommute stays an incipient thought, adjusting to the new
practice will wind up being a tremendous test. India is among the 15 most
influenced economies on account of the coronavirus plague. Furthermore, it
estimates the coronavirus epidemic for India’s trade impact to be about 348
million dollars as well as it is figured by the country among the greatest economies
which are highly affected by the novel COVID-19. It especially damaged the supply
chain of every company in the top highest strongest economies in the world and
slows down the production in these countries because of disrupts in the trade
of the world (Koshle, Kaur, &
Basista, 2020).
Agrawal,
Jamwal, & Gupta (2020) have described in their research that it is being
faced form the Covid-19 epidemic at the current time into the world which is
also called coronavirus. The first case came into china and reported in Wuhan
city which is the major transportation and import-export hub into the world. After
spreading this virus into china and then in other countries, the governments in
the world have decided to lock down their counties to stop spreading this
disease because the virus can be spread by touch or physically contacted to the
other persons. Due to the lockdown, the import-export, transportation as well
as the supply chain have damaged badly throughout the world. Additionally,
China is the significant wholesaler of the crude materials which influence the
assembling exercises over the globe because of lockdowns. India is the creating
nation because the Covid-19 spread the cases announced in the Indian government
has lockdown the nation for 41 days which influenced the assembling exercises
and significantly it influences the flexible chains and economy of the nation.
In the current paper, we have talked about the impact of Covid-19 on the Indian
economy and on gracefully chains in India. It is also determined that there are
several barriers to the world that has badly affected the supply chains
globally (Agrawal, Jamwal, &
Gupta, 2020).
Discussion of How Catastrophic Risk Such as
COVID-19 Could Impact Supply Chain Industry?
In
accordance with the literature, it can be derived that with the outbreak of
coronavirus, the need of intertwined supply network has increased
significantly. ISN has structural dynamics and they are considered open systems
because multiple behaviors might be exhibited by organizations by making
changes to the into the supplier roles in a consistent manner. In addition to
it, there is a significant need of taking logistics services related to
agriculture into consideration. Autumn is a season for harvesting and due to
coronavirus, great challenges have been presented. In past few years, China was
recognized as one of the major supply chain players. However, it is believed
now that China might lose its competitive position because of the pandemic. In
addition to China, the pandemic has affected nearly every nation.
It
would not be wrong to say that the domain of supply chain has been affected
significantly by the coronavirus. If it is not eliminated, it could leave
immense dents on world economy by stopping supply chain. Supply chain is
affected so badly because the pandemic spreads from touch and when an infected
person coughs or sneezes on an object, that object is infected as well. It is
capable of infecting every other that comes in contact with it. Therefore, it
is dangerous for people to purchase products externally. This is the reason why
supply chain is blocked. The literature review also suggests that coronavirus
has only adversely influenced the supply chain and if effective precautions are
not taken, it would lead to the end of major supply chain related businesses.
Impact of Covid-19 on global supply chains
In
this section, it is discussed about impacts of the corona virus or COVID-19 on
the global supply chain industry and also described how much it is impactful. The
pandemic disease has already made several important kinds of disruptions for the
societies as well as for the organizations at larger scale and completely
changed the outlook of macroeconomic in the running year. It has been
substantially become more interconnected by the supply chain industry
throughout the world as increase came into the globalization. Furthermore, the
emerging market economies have steadily come to account for the big part of GDP.
Furthermore, the goods have mostly several stages to pass through before attainment
of the consumer.
Regardless
of the development stage or the size, it has been resulted by Coronavirus into
the extraordinary disturbances in the supply chain to many economies mechanics
from the lockdowns on the national level to closed borders. The major strain on
supply chains of the world including the compulsory associations regarding
medicines and food, has been placed particularly by the erection of these
barriers.
How Covid-19 affected Supply chain
Due
to the Covid-19, the disruptions to the global supply chain have been very high
and massive. It has stymied the raw material, finished products, operation of
people, free movement as well as operations of the factory. Furthermore, challenges
have been experienced by direct supply chains as well as the supply chain partners,
they have been extended like third and the fourth party vendors.
Supply Chain Disruptions of How Catastrophic
Risk Such as COVID-
Covid-19
has affected every single aspects of supply such as food, medicine, cleaning
suppliers as well as raw materials for different products. The history and the
studies are providing the information that it is the biggest disaster
throughout the world after world war II. Due to the Corona Pandemic, countries,
states as well as cities are locked by the order of the governments and no
anything permitted to be transported. In fact, the supply chain industry is
facing many problems because Covid-19 is affecting every supply chain area
virtually. Some impacts are given in the flowing list.
·
The total effect of the closures of the
businesses and the production plants through the imbalances in demands as well
as disruptions.
·
The international supply chains are facing the
break downs and many companies are forced to close their cargo terminals due to
drop into the resource and products volumes.
·
Because of closure and lockdowns, various container
ships in the cargo ships are not permitted to move to deliver containers.
·
The stocks which stored in the current markets
is completely finished or almost near to finish that is sign of danger for the
industries
·
Due to closing the boarders of every country
around the world, states boarders and the closure of the transport, the goods
can also not be imported or exported that disturbs the prices of the goods.
Measuring Impact of Covid-19 on Supply Chain of the
World
Some
organization and the groups such as Institute of supply management are trying to
covering around the long term and short-term effects of the outbreak worldwide
as the Pandemic starts to beat strongly connected supply chains of the world. The
surveys were made ready to analyze and measure the impact of the Covid-19 on
the supply chain industry. In the first survey, ISM focused particularly at the
impacts of supply chain and businesses. It was determined that almost 75%
companies around the world are facing difficulties in maintain the supply
chain. Due the lockdown, the 80% transporter are reporting about the
restrictions in the transportation services. Furthermore, it was also reported
by ISM that 16% report adjusting revenue targets descending having 5.6% average
because of covid-19.
Recommendations of How Catastrophic Risk Such as
COVID-19 Could Impact Supply Chain Industry?
In
this section, some important suggestions and recommendations are provided that
can be helpful for the companies, businesses and the supply chains to cover or
survive in this situation. The businesses should have to go towards innovation to
transform the processes of their businesses. The supply chain management
technology vendors should focus on the transformation of the business to pull
out the business from the trouble. It is needed by the customer organizations to
see how they can be prepared in the better way by the supply chain management
solutions for the instability, macroeconomics, challenging conditions as well
as the fluctuations. The planning of the organizations as well as the
management beyond the supply chain can also be supported by the supply chain
management. That’s why, the vendors should have to plant by calculating the
impacts of the supply chain. Furthermore, the supply chain management can also
create the strong but agile model which can rise to the current as well as the
future challenges that can threaten the supply chain and businesses of the
organization. The companies must have to consider the disruption prevention
framework deployment throughout the organization for wide supply chain.
Conclusion of How Catastrophic Risk Such as
COVID-19 Could Impact Supply Chain Industry?
It
is concluded that the repercussion of the outbreak of COVID-19 as ben has taken
more strongly with the passage of each day. The survey has been made from the
Institute of Supply Cain Management in which it has clearly been observed (Subhasmita,
2020)
that 75% of organizations. The researcher is saying that the ISN (intertwined
supply network) is the total interconnected supply chain into the secure
provision of the markets as well as the society along with the service and the
goods. India is among the 15 most influenced economies on account of the
coronavirus plague. The pandemic disease has already made several important
kinds of disruptions for the societies as well as for the organizations at
larger scale and completely changed the outlook of macroeconomic in the running
year. Due to the Covid-19, the disruptions to the global supply chain have been
very high and massive. Challenges have been experienced by direct supply chains
as well as the supply chain partners, they have been extended like third and
the fourth party vendors. The history and the studies are providing the
information that it is the biggest disaster throughout the world after world
war II. In the first survey, ISM focused particularly at the impacts of supply
chain and businesses. It was determined that almost 75% companies around the
world are facing difficulties in maintain the supply chain. The planning of the
organizations as well as the management beyond the supply chain can also be
supported by the supply chain management. The companies must have to consider
the disruption prevention framework deployment throughout the organization for
wide supply chain.
References of How Catastrophic Risk Such as
COVID-19 Could Impact Supply Chain Industry?
Agrawal, S., Jamwal, A., & Gupta, S. (2020).
Effect of COVID-19 on the Indian Economy and Supply Chain. Journal of supply
chain barriers.
Dmitry, I. (2020). Predicting the impacts of epidemic
outbreaks on global supply chains: A simulation-based analysis on the
coronavirus outbreak (COVID-19/SARS-CoV-2) case. Transportation Research
Part E: Logistics and Transportation Review.
Eneko, L., Robles, J. D., & Lamprou, D. (2020).
Additive Manufacturing Can Assist in the Fight Against COVID-19 and Other
Pandemics and Impact on the Global Supply Chain. 3D Printing and Additive
Manufacturing.
Ivanov, D., & Dolgui, A. (2020). Viability of
intertwined supply networks: extending the supply chain resilience angles
towards survivability. A position paper motivated by COVID-19 outbreak. International
Journal of Production Research, 2904-2915.
Jill , H. (2020). Food supply chains during the
COVID‐19 pandemic. Canadian Journal of Agricultural Economics/Revue
canadienne d'agroeconomie .
Koshle, H., Kaur, R., & Basista, R. (2020).
Breakdown of Business and Workers in India: Impact of Corona Virus. Macroeconomics
Journal.
Subhasmita, R. (2020). An unprecedented footprint of
covid19 on education sector: A review on impact and measures. Purakala with
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