IMPACT OF COVID-19 ON SUPPLY CHAIN -- UPSTREAM or DOWNSTREAM

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IMPACT OF COVID-19 ON SUPPLY CHAIN -- 

UPSTREAM or DOWNSTREAM : 




The spread rate of the peak of coronavirus outbreak is still highly uncertain. One of the most visible impacts of this pandemic situation is on the global supply chain. Mostly customers noticing goods and specific products become harder to find at their local store. There is an unseen disruption in supply and demand of the material.

Dramatic changes in the supply and demand leads to following situation:

·         Shortages: 

A Across the globe, harvests are going to waste because laborers are banned from working, the farmers can’t travel to farms or don’t want to work for fear of the virus. As the global economy collapse, due to the lockdown all over the world, millions who already struggled to feed their families are now facing extremely serious situations as there were no work left and the jobs evaporate. And because of the supply chain disruptions in places where people are dependent on imports of food items, prices are at sky.

·      Rationing: 

mMost of the retailers face rationing by keeping only limited or fixed amount of stock.

·         Prioritization, most of the online retailers prioritizes supplies and set deliveries of certain items (household and medical).

·         Reduction in the number of SKUs (stock keeping units). To manage their supply chain most of the retailers reduce their product variety.

 


EXAMPLE

We have seen a rise in purchases for medicines, health items, supplies, cleaning materials, medical equipment, medical instruments in the beginning of the pandemic.

Presently retailers, monitoring inventory levels and having visibility, over all inflow of goods is critical.

In the U.S. MEET PROCESSING PLANTS have been shut down over COVID-19 outbreaks. In the U.S. and the U.K. Farmers have been forced to dump and discard the milk because demand from restaurants and coffee shops decrease rapidly under lockdown. Transportation restrictions made it much difficult for farmers to fertilize and plant new crops, or to send the ones they harvest to local food markets, which have closed widely. There is ban situation in imports and exports in most of the countries Vietnam announced a ban on rice exports in March. and Russia announced in April a quota for wheat exports until June—blocking trade that other countries rely on to feed their people.

 

Adidas: All U.S. stores are closed through March 29, 2020.

 Aldo: All stores in Canada, the U.S., the U.K., France and Ireland are closed until further notice.

Allen Edmonds: All stores are closed from March 16 through March 27, 2020. The company said it would continue to pay employees who were scheduled to work during this period.


By Kahkshan Asif ☺

 

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