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How Catastrophic Risk Such as COVID-19 Could Impact Supply Chain Industry?

Category: Health Education Paper Type: Online Exam | Quiz | Test Reference: APA Words: 3500

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 ISSN 0971-2143 is an UGC CARE Journal , 548-551.

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