Question

Explore critically the emerging changes in SCM due to coronavirus outbreak in Kazakhstan; discuss the critical importance of efficient transportation, border crossing, warehousing and customer service during the state of emergency in countries; relying on latest analytical data and statistics evaluate the main risks and opportunities that this situation can bring about to our Kazakhstani market and economy from the SCM point of view.

Answer 1

Due to lockdown and the spread of coronavirus, various countried are facing major issues and problems despite of any funding. This is causing a shortage of certain products and therefore leading to hiking of their prices. The supply chain is broken down, due to the issue of demand and supply, most people are just buying what is essential for their survival and other products are left to waste. LSPs' are not spared for the reason that imports must be quarantined for a longer period and therefore, this requires a huge space. Thereby first in first out principle cannot be observed hence supply chain breaks down continuously, in addition, by the fact that the tracks, submarines ships and containers are controlled and driven by humanity, might as well fuel the spread of COVID 19 further. Finally, the world might experience a recession of the global economy worse ever than world war II and this can bring the entire world to its knees, despite of the developed nation not able to do even the least, even with all the technologies and types of machinery.

The changing of stakeholders' attention from "more frequent" risks to "low-prob but high consequence" risks. While technologies are mostly applying to supply chain management in solving day-to-day risks, the instabilities observed recently suggest that the environment of supply chains is showing many uncertain factors that the traditional prediction models are struggling to predict. How much data we need to prioritize these fundamental changes above casual, daily operational risks. So the frequentists and realists are facing more difficulties in explaining reality, based on solely objective probability and statistics.