The Coronavirus

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The coronavirus (COVID-19) outbreak shows that pandemics and epidemics can seriously wreak

havoc on supply chains around the globe. Humanitarian logistics literature has extensively
studied epidemic impacts; however, there exists a research gap in understanding of pandemic
impacts in commercial supply chains. Industrial liaison program the covid pandemic outbreak is
first and foremost a human tragdey affecting hundreds of thousands of people it’s also having a
growing impact on the global economy.

Dichotomy of business disruptions

- Random phenomena
- Accidents
- Governments and politics
- Non compliance
- Competition
- Economy
- Social discontent
- Intentional discruptions
- Pandemic

Supply Chain Impact


- Comparisons to economic impacts of fukushima meltdown, thailand floods,
SARS/MERS, Katrina are inaccrute
- Covid-19 impacts both supply and demand
- China today is a much larger element of the world’s GDP than during those disruptions
- Demand reduction due to fear and social distancing may bring about a severe recession.
Example number will go by 10% for a long while it also has inventory assuming that i will be a
hundred percent so it has to reduce for the future its order and it has to get its inventory down
in addition Pandemi covid, the supply chain is also facing shortage of time for delivery

example :

- Chinese new year recess ended by the end of january/beginning of february 2020
- Factories the world over knew not to expect shipments during the Chinese factories
closures

- Factories expected shipments to restart right afterwards


- They all had inventories of parts to cover the down period but not much more
- shipments do not use aircraft because of the large cargo, so that goods are ideally sent using
a cargo ship

Apart from making delivery times longer, the Covid pandemic also caused limited supplies

so it did

- allocation
- Auctions
- Dilutions
- Substitution/demand shipping
-
Then the supply chain takes action in the face of the Covid 19 pandemic such as :
a. emergency operations center
- Central information and decision making function
- Taking care of employees
- Taking care of the business eco-system
- Taking care of communities

b. Communications and decision protocols


c. Decision making authority
d. Review Suppliers
e. Review of products/costumers
f. Finance
- Cash is king
- Secure credit lines
- Think about the recovery
g. Plan for the recovery
- Keep expertise in house
- Continuity of pay
- Taking care of families
- Allow for part time work
- Opportuinity for tough business decisions
- Reorganitazion

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