Sunday, August 2, 2020

Disruptions in Supply chain due to Covid-19

The first action of the world governments to COVID outbreak was to ensure the people that there would not be any supply disruptions for the essentials.

Trade Is essential to save the lives and livelihoods of the people. The tragedy of the virus intensified when it hit the low-income countries where the healthcare systems are weaker. Keeping the flow was the only thing that sounded optimistic.

Despite the uncertainties that arise from pandemic governments were fixed on taking essential actions:

Maintain the global supply for essentials

Air freight is the single means of transport that carries a large amount of goods across countries in a short time. Initial restriction on air freight was a major blow to many of the countries. Despite the current increase in the number of flights, reduction in passenger flights had reduced 31% of global air cargo capacity.

41% of the vaccine produced for UNICEF is from India and it heavily depends on air freight. So UNICEF is urging governments to prioritize emergency shipments.

Avoid making this even worse

Currently more than 60 countries have implied trade restrictions in the export of essential goods like food products, medicine and equipment. Export restrictions will deeply affect other countries who are depending on them. It will lead to panic buying and hoarding of goods. Even if there is enough supply, the demand cannot be met and it will create huge impacts.

In case of medical supplies Governments has to boost their productivity of equipment manufacturing, continuously seek possible opportunities in producing medical equipment.

In this case, even the countries with significant production capacity could not have required supply due to a shortage of labor and mobility restrictions. Higher the disruption in production, higher the pressure on the supply chain.

Looking  beyond today

 A multi-stop charter flight is one of the innovative ideas to deliver essential vaccine mainly across the small countries. Each government is easing its rules to improve the supply chain. Lean supply chain has begun to rise in every aspect and to develop lean supply chain, companies are looking for adoptive and advanced technical solutions.

 


1 comment:

  1. Interesting read. What are some measures that companies are taking to prevent this from happening again ?

    ReplyDelete

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