Supply Chain Vulnerability during Covid 19 pandemic The year 2020 was a difficult one for Gerald, a
Question:
Supply Chain Vulnerability during Covid 19 pandemic
The year 2020 was a difficult one for Gerald, a sole proprietor. For many years he had been in business, production has been flawless and customer needs were met without much effort.
However, the Covid 19 pandemic, disrupted the supply chain forcing upstream suppliers to practise “supply apartheid”. Governments encouraged their firms to feed the local market first. Technological advancement and Globalisation became localised. Lock downs not only stopped the flow of materials but also staff. In fact, even the biggest economies were not spared the scarcity of raw materials and for the first time, there was a global problem. The supply chain agility was put to test. The world economic power houses driven by technology had to do without key ingredients, such as microchips. It was at this point the rationale of comparative advantage was put to question. The supply chain under belly was exposed.
A key ingredient, Thubu, is sourced from a supplier in Afghanistan where transhipment is done four times before delivery at the warehouse.
By the end of the year, Gerald had shut down his business due to acute shortage of raw materials which were sourced in the international market. This was a hard decision to make that involved sending the staff home.
The Covid pandemic was an eye opener to Gerald ,as it was able to highlight the strategic significance of supply chain management .
(a)From the above, highlight some of the key issues that supply chain managers encountered during the pandemic.
(b)What measures can supply chain managers take to reduce these supply chain vulnerabilities in future.
Expert Answer:
The detailed answer for the above question is provided below Solution aThe Covid pandemic had a major impact on the supply chain globally Some of the major impacts were felt throughout the supply chai... View the full answer
