Question

Discuss the relation between globalization and current COVID-19 disruption. How do you think the warehouse can play a role in making companies respond to this disruption risk?

Answer 1

Relation between the globalization and covid 19 disruptions.

• Due to covid 19 disruption in most of the countries, organization are not able to import or export the goods which have impact on the global business.
• Due to covid 19 outbreak, global supply chain business have reduced which directly affecting the global business.
• Outsourcing process becomes difficult job due to covid 19.
• Tax, trade, EXIM polices are revised in global business due to covid 19.
• Large fluctuations in the international currency excahnge rate due to covid 19 disruptions.
• Most of the international share market holders are in huge loss due to covid 19.

Let us know how warehouse play a role in making / production companies regard to disruption risk.

• Due to disruption risk such as covid 19, it is difficult for the warehouse to supply raw material to production industries.
• At the same time. since marketing activities completed stopped, warehouses are facing difficulties in storing of produced goods due its limited capacity.
• Due to warehouse storage for longer duration, holding cost of units will increase for the companies.
• Some warehouse are empty due to no production activities which have resulted in other expenses of warehouse or industries such as rent, parking, electricity, water etc.

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