STUDY: COVID-19 HAS IMPACTED 94% OF FORTUNE 1000 COMPANIES THE OLD SCHOOL HOUSE CHAPEL STREET BELPER DERBYSHIRE DE56 1AR CHEVIN FLEET +44 (0)1773 821992 +44 (0)1773 828822 SALES@CHEVINFLEET.CO.UK SUPPLY CHAINS ALL OVER THE GLOBE HAVE BEEN IMMENSELY AFFECTED BY THE COVID-19 PANDEMIC. WHEN MAJOR CITIES AND COUNTRIES BANNED TRAVEL ACROSS THEIR BORDERS TO STOP THE SPREAD OF THE VIRUS, THE PROCUREMENT AND DISTRIBUTION CHANNELS ALL OVER THE WORLD WERE DISRUPTED. ACCENTURE’S THE STATE OF SUPPLY CHAINS DURING COVID-19: SUPPLY CHAIN DISRUPTION REPORT STATED THAT SUPPLY CHAINS OF ABOUT 94 PER CENT OF FORTUNE 1000 COMPANIES EXPERIENCED SOME FORM OF DISRUPTION BECAUSE OF THE PANDEMIC. SEVENTY-FIVE PER CENT OF THE SAME SAMPLE REPORTED A “NEGATIVE” AND “STRONGLY NEGATIVE” IMPACT ON THEIR BUSINESS. FINALLY, 55 PER CENT STATED THAT THEY ALREADY HAVE OR WILL DOWNGRADE THEIR GROWTH OUTLOOKS FOR THE YEAR. A RECENT LITERATURE REVIEW PUBLISHED IN THE JOURNAL, ANNALS OF OPERATIONS RESEARCH DESCRIBED THE DISRUPTIONS TO GLOBAL SUPPLY CHAINS AS SEVERE. INTERNATIONAL AIRPORTS AND MANUFACTURING COMPANIES PARTIALLY OR COMPLETELY CLOSED DOWN, EFFECTIVELY HALTING THE PRODUCTION AND TRANSPORT OF GOODS FROM SOURCE TO CONSUMER. THE BIGGEST DISRUPTIONS HAPPENED TO SUPPLY CHAINS THAT SOURCED MATERIALS FROM OVERSEAS PRODUCERS THAT DOMINATED THE MARKET. CHINA, WHICH THE STUDY REFERS TO AS “A WORLD’S FACTORY,” IS AN EXAMPLE. THE CLOSURE OF ITS INTERNATIONAL AIRPORTS AND THE BAN THAT MANY COUNTRIES IMPOSED ON ALL TRAVEL FROM CHINA CREATED A RIPPLE EFFECT IN GLOBAL SUPPLY CHAINS. IT AFFECTED MANY INDUSTRIES, INCLUDING AUTOMOTIVE, ELECTRONICS, MEDICAL EQUIPMENT AND MATERIALS, AND CONSUMER GOODS. THE RIPPLE EFFECT OF LOCKDOWNS MOVING FORWARD EVEN AS INTERNATIONAL TRAVEL AND RESTRICTIONS GRADUALLY LOOSENED IN THE SECOND HALF OF THE YEAR, THE CHALLENGES THAT PLAGUED COMPANIES DURING THE EARLIEST WEEKS OF WIDESPREAD LOCKDOWNS REMAINED IN THE MINDS OF SUPPLY CHAIN LEADERS AND INDUSTRY EXPERTS. DELOITTE’S ANALYSIS OF THE IMPACT OF COVID-19 ON SUPPLY CHAINS OFFERS INSIGHT INTO WHAT CAN BE CONSIDERED AS AN OVERSIGHT IN SUPPLY CHAIN MANAGEMENT. COMPANIES FOCUSED ON OPTIMIZING SUPPLY CHAINS BY REMOVING REDUNDANCIES, STRATEGIZING TO REDUCE COSTS AND FACILITATE THE TIMELY DISPOSAL AND DELIVERY OF INVENTORIES. UNFORTUNATELY, THESE OPTIMIZATION STRATEGIES ALSO ERODED THE FLEXIBILITY OF SUPPLY CHAINS. WHAT COMPANIES SAW AS AVOIDABLE EXPENSE OR WASTE OF TIME AND RESOURCES TURNED OUT TO BE THE BUFFER THAT WOULD HAVE SOFTENED THE ECONOMIC BLOW OF THE PANDEMIC. FORTUNATELY, CREATORS OF SUPPLY CHAIN AND ASSET MANAGEMENT SOFTWARE PROGRAMS HAVE INCORPORATED THE LESSONS LEARNED FROM THE PANDEMIC INTO THEIR PRODUCTS AND SERVICES. ORGANIZATIONS CAN NOW MONITOR THE END-TO-END MOVEMENT OF THEIR GOODS AND PROCUREMENTS, FOR EXAMPLE, AND BE IN TOUCH WITH THEIR ENTIRE SUPPLY CHAIN NETWORK. BIG COMPANIES AND MULTINATIONAL CORPORATIONS CAN GAIN A LOT IF THEY INVEST IN SUCH SUPPLY CHAIN AND ASSET PROCUREMENT TECH SOLUTIONS. SOURCES: HTTPS://WWW.CHEVINFLEET.COM/GB/SOLUTIONS/ASSET-MANAGEMENT-SOFTWARE/ HTTPS://WWW.ACCENTURE.COM/US-EN/INSIGHTS/CONSULTING/CORONAVIRUS-SUPPLY-CHAIN- DISRUPTION HTTPS://LINK.SPRINGER.COM/ARTICLE/10.1007/S10479-020-03685-7 HTTPS://WWW2.DELOITTE.COM/GLOBAL/EN/PAGES/RISK/ARTICLES/COVID-19-MANAGING-SUPPLY- CHAIN-RISK-AND-DISRUPTION.HTML# HTTPS://WWW.WEFORUM.ORG/AGENDA/2020/03/CORONAVIRUS-AND-GLOBAL-SUPPLY-CHAINS/