Question

Please take two companies and compare and contrast how the Coronavirus has impacted their supply chain. Please make sure that you cite your sources. If you are working at your company, you need to interview someone and can use that as one company and cite your source.

Subject: Supply Chain

Answer 1

The COVID-19 is the epidemic forced the companies to shut their business and sit back at home. This disease is communicable and is spread with just a single touch. The transmission of this virus or disease is so fast that economy of many countries have been collapsed.

The major impact of corona Virus on the economy is

• Cost cutting
• Economy downfall
• Effect on distribution Channel
• Supply chain got affected

There are two categories in this the one fighting against it and the one accepting that nothing can be done. The companies fighting against this corona virus has mad immediate switch to producing totally the different line of production like face marks and Hand Sanitizers.

One such company is General Motors (Source: Website and Fortune)

The name of the company was known for production of Motor Vehicle and automobiles however in World War II it has produced machine guns and tanks to help the US government in the same way it is helping the government in the current situation. The General Motors have done partnership with other motor company to make the machine which can manufacture the surgical masks used by the doctors in operating Corona Virus Patients

Effect on Supply Chain:

• The first lot of mask was produced within seven days from declaring it in the press release i.e the tested kit designed.
• There is a positive effect on the supply chain as their capability is to produce 50000 to 70000 face masks in a single day.
• The best act done was that the source of material was the already existing supply chain and while partnering with other motors like Esys, JR Automation the machinery was built.
• There was a competitive advantage taken by the General Motors even in the market crash, as the production of first lots was easily done using the existing supply chain however the distribution was a difficult approach faced by the Company.
• The company's production of seat- belts, inner facility fabrics was used to manufacture these masks.
• Although the company might not be making that profit which they could have make by manufacturing electrical vehicle however their personal economy has not been collapsed and indeed they are making the livelihood of their employees working in this new line of production.

Therefore we can sum up as

• Rare effect on the company's production.
• The supply chain is actively working as there is a use of existing supply chain in producing the first lot
• Distribution Channel is supplying to the medical practitioner and the doctors to protect them from patients positive of this diseases.
• The Social Responsibility is also fulfilled by the company has the company is working for the society as well.

The another company i would like to discuss is: Ford Motors ( Source : Website and press release )

The company in known for manufacturing automobiles and due to this virus there is a negative impact on the same:

After this virus there is negative impact on the demand of the product moreover the employees are also not allowed to work therefore no operation and continues loss.

Effects of the same on Supply Chain of the Company

• Zero production hence Machines are on idle mode.
• There is zero employees working from the organization therefore resources are wasted.
• However, the employee in the management are given work from home to understand the strategic management of the company in the upcoming months.
• The supply of parts from China has been completely stopped therefore increasing the cost of production.
• The company has suspended all the business travel to China and other country after their two employees were tested positive for the virus.
• The supply chain is mostly affected by the demand which is null for the time being

We can sum up the pressure on Ford as:

• Zero work but paid workers.
• Less production but no recovery of installment paid by the buyers
• Restriction on business travels
• Supply chain faces negative impact due to less demand

CONCLUSION

From the above discussion it is clear that to change the vision of the company is decided by the mindset of the top management and how actively they can think to change it. The both companies are involved in automobiles however one is still earning profit and goodwill in the market however the other is just making losses and thinking of how to mitigate these losses. Therefore quick action sometimes is useful for the company and its supply chain. Moreover serving to the society helps the company to perform better and even the employees are also performing the good deeds.