Question

Discuss the impact of the Covid-19 crisis on the supply world

Answer 1

COVID-19 pandemic has drastically changed the business environment of several organizations all over the world. The acute restriction, as well as the terms and conditions of the lockdown, have affected the supply chain of almost every business. The pandemic has not only directly affect the supply chain but also indirectly such as the externalities as well as the government activities of the world imposing several terms on the business contracts or trade wars. For example, India imports approx half of its active pharmaceutical ingredients from China, and as the Indian government has restricted its imports, the company will face to some extent delivering its exports numbers. As China is one of the major sources for the components as well as the finished goods all over the world, it has affected the supply chain of several businesses. According to the report of the Institute for Supply Chain Management, approx 75% of the organizations have reported disruption in the supply chain due to the transportation restrictions. The massive dependency upon the logistics has made the import, export and manufacturing difficult proposition in the context of the disruption of the global supply chains.