Impact of COVID-19 on Supply Chains Across the World
As the pandemic took its grip in China, the manufacturing industries underwent a lot owing to the lockdown of the common public, border & flight restrictions on China. Now, as the COVID-19 became a global pandemic, the whole world is under a dark cloud. It has spread to almost 210 countries as per the latest reports, devastating the economies of the countries.
Although the Chinese have achieved in flattening the curve in their own country and, Italy and Spain have partially overcome the crisis, the virus is wreaking havoc in the US and the United Kingdom now. The entire world has observed how the virus has brought many countries of the Global North to their knees.
Experts from WHO worries that the next target of the virus could be South Asia. Most politics fearing the spread have inflicted lockdown in their countries. Businesses around the world are undergoing an unprecedented crisis. Huge interruptions in the supply chain, manufacturing, closure of business, and problems in the supply network.
The supply chains across the world are suffering through both existential and short term challenges. Essential supplies involve food & medicines need to be moved, which is becoming a problem. The panic buying is resulting in shortage of availability, a hike in prices, and disruptions in the supply chain.
How Supply Chains are adjusting?
China has given hope to the rest of the world by preventing further extent in the country. But in reality, there is so much to do to recover from the economic crisis. It will take time for production companies to work like before & deliver better logistics solutions.
New Policies
Moreover, companies are seeking substitute ways to assure the effective working of the global supply chain. New policies, innovation, and a lot of hard work are required to make the supply chain more flexible.
Secondary and Tertiary Suppliers
Due to the lockdown & isolation, policies in several countries have caused some delays in the shipment of the products. Some companies are shifting to secondary or tertiary suppliers to fulfill the missed deliveries.
Retooling
Many organizations are choosing retooling. Replying to the hour of need, some companies are re-tooling production. The partners of Distilling companies are making hand sanitizers and disinfectants. Automobile manufacturers in China also made healing face masks to reduce the spread and to create the revenues and positive reputation of the company.
Automation
Many companies are automating their operations. Utilizing automation as an alternative for the labor workforce in the supply chain will help the companies a comprehensive deal. The automated vehicles, 3-D technology, and automation in the warehouse operations have determined to be really advantageous options now.
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