STUDY: COVID-19 HAS IMPACTED
94% OF FORTUNE 1000 COMPANIES
THE OLD SCHOOL HOUSE
CHAPEL STREET
BELPER
DERBYSHIRE
DE56 1AR
CHEVIN FLEET
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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 SU