Question

COVID-19 has triggered multiple risks across global supply chains. Describe key supply chain risks caused/triggered by COVID-19 and indicate relevant reactive risk mitigation strategies that can be adopted to minimize losses associated with this pandemic.

Answer 1

mpact of Corona virus (covid 19) on operations/ supply chain

• Supply of raw materials has become a big challenge, especially for the companies which were dependant on China
• Industries or companies which are heavily dependant on maintaining constant inventory will have a big challenge of getting rid of existing inventory
• Industries which are dependant on supply from other countries will find a tough time with the restriction imposed on import and export in almost all the countries of the world
• Working capital is going to become a major challenge
• Availability of labor is a major concern
• Sales of distributors and retailers will be hit very badly
• End consumers are not in a position to buy which will result in a domino effect of losses to the retailer, distributor, wholesaler, and manufacturers.
• Even after the lockdown is removed, it will take quite some time for the supply chain industry to come back to normalcy in terms of manpower, working capital, logistics, sales and availability of raw materials

Alternatively:

World wide emergency and countries like Italy, Spain, Iran, Germany, the USA, India and other nations facing huge trouble and fighting for survival because of COVID-19. A chinses virus that is creating a situation like world war and bundle of death is telling the story of unbeatable disaster and helpless government and their systems.

The world economy is almost collapsed and several developed and developing nations fighting for their survival and supporting their citizens through supplying essential commodities but the big question is what level because the situation is day by day becoming worst.

Demand for essential commodities because of COVID-19 at top level and Especially medical equipments like mechanical ventilator, Masc, etc and medicines like hydroxychloroquine demand is creasing rapidly because of its effectiveness in COVID-19.

Supply chain disruption at a high level because of the increasing demand for essential products but manufacturing not as per the demand. China is emerging as a dominant supplier of healthcare equipments which is effective during the COVID-19 pandemic. World wide demand is forcing the suppliers to increase their manufacturing capacity as per the demand but the situation is not under control and manufacturing units are not competent to supply as per demand because of labor shortage and machine capacity.

Supply of other essential commodities like food, water, etc are not effectively operated due to this pandemic and citizens of several poor and developing and even developed nations living in worst conditions due to disruption of the supply chain.