As the pandemic COVID-19 has caused a huge number of set backs that became part of the economy throughout the world & in Canada. Significantly, it has also affected the Global Supply chains. Hence, as well with an understanding of how the global supply chains should have been Pre-Pandemic in order to avoid sudden disruptions & resistance. The Post-Pandemic world is largely focused on making global supply chains being resilient at a far larger extent. Particularly, as well as it needs to be far more robust & much more sustainable to bear the unexpected losses. Must have a higher tendency to avoid uncertain situations and catastrophes such as a pandemic situation. Alternatively, any similar situation that can arise all of a sudden.
HOW COVID-19 AFFECTED THE GLOBAL SUPPLY CHAINS?
The supply shock that originally started from China in February 2020 and the demand shock that followed. Obviously, as the global economy started to shutdown exposed many things. These things can be called the loop-holes or the vulnerabilities in the production strategies. Furthermore, the supply-chains of companies almost in all parts of the world. The main issue aroused due to the timeliness factor being affected to a massive extent. There were temporary trade restrictions as well as the storage of pharmaceuticals. Hence, along with critical medical supplies that were the highlights of the weaknesses in supply chains. Therefore, w.r.t all these consequences, the manufacturers all over the world have faced a greater amount of political and competitive pressures. These pressures have largely been to increase their domestic production. As well as increase employment in their countries. Finally, reduction of dependencies on some sources. These can be termed as key sources that are mostly perceived as risky. Primarily, due to the resistances faced in Supply Chain activities.
Especially true for countries where the pandemic has laid most impacts in a matter of time. Examples includes USA, U.K & Italy where Supply chains have been on a massive suffering end. Hence, apart from what happened in China in Feb 2020. Later on in countries like Canada & Mexico as well. These are countries where the pandemic showed its impacts on the economy in the end part of the year, i.e. 2020.
It’s a challenge for the sustainability & future of the global companies. Especially, large companies to make their supply chains more resilient. They must undergo these practices while not affecting the competitiveness. Hence, in order to meet the challenge the first thing that needs to be understood is regards to the vulnerabilities. Regards to the considerations it’s the vital responsibilities of the supply chain managers. Necessarily, to take certain steps that they should have taken far before the start of the pandemic. These can also be termed as contingency planning for future implications of similar things that has a tendency to arise.
HOLDING THE SAFETY STOCK OR INTERMEDIATE INVENTORY:
In order to encounter situations regards to the pandemic and acting well in advance. It’s mandatory for supply chain managers to hold safety stock or intermediate inventory as a vital step. This is an important part of the contingency planning. Something, that will help stabilise an unexpected and an unwanted scenario. It’s one of the key responsibilities of the company to have a determination on how much extra stock to hold in the interim. Furthermore, to determine in what form and where along the value chain. Ironically, as safety stock carries with it the risk of getting obsolete. Apart from this problem it also ties up cash.
IMPROVING RESILIENCE THROUGH FRESH STRATEGIES:
As a matter of fact it is high time in order to adopt a fresh vision to the realities of the new era. Pandemic COVID-19 is one of them. Apart from this, it has shown many unexpected circumstances to almost the whole world in recent times. New strategies must be taken into consideration. Most importantly, in order to improve resilience as well as reduce the risks from future similar disruptions such as the pandemic. These can be disruptions that are certain or slightly uncertain to occur. However, whatever the case, the losses will be not that high if necessary steps are taken well in advance.