Covid-19 effects on global supply chains

Hi all!

Every day, the effect of the COVID-19 epidemic is felt more strongly on all of us, despite of the unprecedented measures and  efforts taken by governments, businesses and individuals to curb its emergence, the virus continues to step up around the globe, causing damages to people's life and businesses across the world. The fact that the root of the virus lies in China, the de-facto 'world factory,' has only served to accentuate the harm from an economic perspective with a large percentage of supply chains collapsing with each passing day in shock and crumbling.

According to a March survey conducted by the Institute for Supply Chain Management, it shows that  nearly 75 % of companies reported disruptions in the supply chain in one form or another due to transport restrictions related to coronavirus, and the figure is expected to rise further.

Even though we have seen people comparing the current situation with that of swing flu and other crisis that happened long back in history, I think the economic condition is different now , the way we do business has changed, there is a whole new idea of 'Globalization' which did not exist at that time.

Main macroeconomic issues leading to global crises

• India imports more than half of its active pharmaceutical ingredients (APIs) from China. Between India's selectively restricting import of APIs and the logistics challenges generated by COVID-19, India's pharmaceutical industry would find it hard to sustain its export numbers.Logistics make import, manufacturing and export a challenging proposition in the event of supply chains disruption.
• With the pandemic starting in China and hitting other countries at an alarming rate, the sourcing organizations are facing the challenge to procure raw materials and products from low cost economies.
• The unexpected demand that is happening due to the hoarding of vital goods and  drugs has resulted in unusual stress in  supply chains and