Impact of COVID-19 on Supply Chains
None of the industries across the globe have been spared from the devastating impact of COVID-19. The entire world is experiencing lockdown with schools, offices, shopping malls, and manufacturing units, among others getting shut down. This event has deeply affected our daily lives and supply chains that were helping companies to ensure timely deliveries of both essential and non-essential items. While the global leaders struggle to make decisions regarding the containment of the COVID-19, supply chain leaders need to assess the impact such disruptions can have on the global supply chains.
With the pandemic creating havoc across the globe, more and more companies have been forced to throttle down or temporarily shut manufacturing and assembly unit. In order to reduce Supply chain costs, companies are having to pursue strategies such as lean manufacturing, offshoring, and outsourcing. With further globalization and integration of Supply Chains, risks such as this have far-reaching consequences. There needs to be a shift in the mindset to take into account risk management and ensuring business continuity. Companies need to be able to monitor all aspects of their Supply chain right from manufacturing until the product reaches the hands of a consumer, this would help them get the complete picture. In times of crisis, they are able to prioritize efforts to tackle the challenges, assessing customer needs, inventory availability within the reach of logistical hubs among few.