The impact of the coronavirus on supply chain and logistics
Supply and logistics companies, which are primarily involved in the storage, flow of goods, and movement of goods and services, have been massively affected by the COVID-19 pandemic. National lockdowns due to the COVID-19 pandemic have continued to slow or in most cases temporarily stop the movement and flow of finished goods and raw materials, thus disrupting the manufacturing system. Many supply and logistics firms have massively suffered staff shortages and losses due to containment measures imposed because of the COVID-19 pandemic. The COVID-19 pandemic has slowed down the phase of technological investment in supply chains, which has been helping the digital supply chain in assisting enterprises overcome disruption forces (Shu et al., 2012). As a result, the demand for the goods and services has increased, although the efficiency of the supply chain has failed to meet the rising demand for goods and services. Above all, the COVID-19 pandemic has massively disrupted the supply workforce, with many suppliers and logistics firms laying down thousands of workers. In fact, many logistics and supply chain firms have shifted their focus on retraining and re-skilling their employee’s workforce. Many companies are putting more emphasis on helping their workers integrate their digital technologies, making it difficult for newly recruited employees to navigate the challenges of the COVID-19 pandemic (Singh e al., 2021). International trade restrictions and travel burn have led to massive losses in the supply chains, thus making it difficult to sustain their growth and development agendas.
Supply Chains ride on Logistics Networks and IT Applications / Internet, and brief introduction of logistics functions
In the recent world of commerce and trade, supply chains have relied on the internet and logistics network to facilitate their working efficiency. The recent logistics functions have been broadly executed based on the role and contribution of the internet in the global supply chains and logistics networks. Logistics and supply chain firms have been heavily relied on IT applications to improve their order processing in various destinations. Order processing is one of the critical tasks in overall logistics operations. The IT application has smoothly accelerated the placement of the order with legal documentation and transactions boosted by the supply chain network. The use of IT applications in order processing was ensured a faster description of technical details of the ordered product such as price, delivery period, taxes, payment, and other relevant commercial terms of agreement (Goel et al., 2021). The application of information technology in supply chains and logistics has helped in improving the relationship between order processing and the cycle period. The IT application has improved the check and balances capacities, production and scheduling of the materials, and boosted payment and delivery efficiency.
The application of IT has improved inventory control in logistics and supply chains. The inventory management relies on IT applications to meet the customer demands and requirements. The use of ERP systems in the supply chains and logistics networks has provided a comprehensive management system as it provides the manufacturers with a consolidated and holistic review of the entire supply chains—while allowing the distributors and manufacturers to make better and more informed procurement and purchasing decisions. The managers and executive officers in the supply chains and logistics firms have integrated greater oversight by the use of the ERP system as part of the logistics and supply chains. For example, an ERP system helps manufacturers with detailed inventory procedures and work-in-progress employment, making it easier for the manufacturers to respond with greater efficiency and confidence about their order processing. Above all, the use of ERP system in supply and logistics firms help in maintaining a comprehensive inventory tracking system, thus helping in the overall control and management of production of stock and inventory. By the use of technology, manufacturers can effectively categorize their inventory, probably manage a detailed warehouse, and record different cycles and movements of the products.
The ETP system has made it easier for the supply chain firms to measure the qualitative and quantitative factors of various vendors, thus helping in making better decisions, and ensuring performance improvement in the global market scale. Notably, the use of ERP systems offers a more reliable means of managing procurement and supply of goods and services, and other resources essential for custom manufacturing. It is important to note that purchasing in the custom manufacturing surrounding is more complicated if a consistent and straightforward manner is needed. In such cases, the ERP system can be used to handle warehousing and manufacturing, thus managing execution and transportation processes—while keeping track of communications. The use of IT applications, in particular, the application of ERP systems in the supply chains and logistics forms ensures real-time reporting. However, the creation of the manual reports often runs a loss risk due to labor-intensive process—that leads to poor decision-making. Therefore, companies use ERP systems like business intelligence, including real-time reporting and data features of ERP. However, this allows decision-makers to keep better tracking records of products, thus improving operational efficiencies.
Green Logistics initiative has outlined a detailed process for the suppliers and manufacturers to adapt color-coding systems to identify different kinds of waste reusable, recyclable, and green waste.
The high number of related natural catastrophes and the annual record of the temperature in the global landscape, and in the different global spheres of the world usually provide valid indications of the abnormal weather conditions. In the year 2010, different countries in Europe started exploring firms green supply chains mechanism to identify different and significant improvements in the representative industries. The ultimate reason for launching the green actions includes that there are reasonable attempts to improve the brand images and offer the required executive sponsorship for the continuity of the sully chains firms. The supply chains and logistics firms now see the green chains as the most valuable value of chains activities in the long-term continuity of the businesses (Kouhizadeh & Sarkis, 2018). The classic supply chains mechanisms focus on the time-efficient movement, cost, and proper coordination of the goods and the services from the main suppliers to the ordinary customers. The global leaders have extended their strategies to include global leaders in ensuring supplier economies, while also maintaining supplier manufacturers’ relationships. The companies work by increasing motivation practices that ensure the companies are becoming more mature in the green matter issues. The majority of the companies have intensified their green measures for the past years to ensure full compliance with green action measures. More than a third of the global companies operating in the global supply chains and logistics have declared that the startup environmental actions are required to ensure value creation of the value chains in the supply systems.
Global companies have started to see the convergence of the environmental and economic interests in the supply chains domains. Approximately 70% of the global supply chain firms believe that the green supply is true as it has ensured the proper returns of the investments. Unfortunately, the companies that choose to agree and implement a green supply chain are often committed to the long and continuous overhaul. The green actions in the supply chains seem to behave necessitated by storms all created by the economic crisis. Many of the companies have declared that the COVID-19 pandemic has not brought braking effects on the overall supply chains and ongoing environmental initiatives (Kouhizadeh & Sarkis, 2018). For the companies to assess environmental green actions in the logistics and the supply chains, the global companies must introduce the green key action indicators and required metrics to meet the required standards in the global supply chains. It is important to understand that the supply chains often extend to all organizations, trading partners, and the overall process involved in manufacturing, purchasing, distribution, material management, and reverse logistics (Kouhizadeh & Sarkis, 2018). The logistics and supply chain firms have ensured the compliance of the environmental responsibilities in the overall logistics and supply chains at every reasonable stage of production and the overall process of optimization.
Conclusion
In conclusion, the national lockdowns due to the COVID-19 pandemic have continued to slow or in most cases temporarily stop the movement and flow of finished goods and raw materials, thus disrupting the manufacturing system. Many supply and logistics firms have massively suffered staff shortages and losses due to containment measures imposed because of the COVID-19 pandemic. The COVID-19 pandemic has massively disrupted the supply workforce, with many suppliers and logistics firms laying down thousands of workers. In fact, many logistics and supply chain firms have shifted their focus on retraining and re-skilling their employee’s workforce. Many companies are putting more emphasis on helping their workers integrate their digital technologies, making it difficult for newly recruited employees to navigate the challenges of the COVID-19 pandemic. The recent logistics functions have been broadly executed based on the role and contribution of the internet in the global supply chains and logistics networks. Logistics and supply chain firms have been heavily relied on IT applications to improve their order processing in various destinations. Order processing is one of the critical tasks in overall logistics operations. The IT application has smoothly accelerated the placement of the order with legal documentation and transactions boosted by the supply chain network. The classic supply chains mechanisms focus on the time-efficient movement, cost, and proper coordination of the goods and the services from the main suppliers to the ordinary customers. The global leaders have extended their strategies to include global leaders in ensuring supplier economies, while also maintaining supplier manufacturers’ relationship.
References
Shu, J., Li, Z., Shen, H., Wu, T., & Zhong, W. (2012). A Logistics Network Design Model with Vendor Managed Inventory. International Journal of Production Economics, 135(2), 754-761.
Singh, S., Kumar, R., Panchal, R., & Tiwari, M. K. (2021). Impact Of COVID-19 On Logistics Systems And Disruptions In Food Supply Chain. International Journal Of Production Research, 59(7), 1993-2008.
Goel, R. K., Saunoris, J. W., & Goel, S. S. (2021). Supply Chain Performance And Economic Growth: The Impact Of COVID-19 Disruptions. Journal Of Policy Modeling, 43(2), 298- 316.
Kouhizadeh, M., & Sarkis, J. (2018). Blockchain Practices, Potentials, And Perspectives In Greening Supply Chains. Sustainability, 10(10), 3652.
Sanders, N. R., Boone, T., Ganeshan, R., & Wood, J. D. (2019). Sustainable Supply Chains In The Age Of AI And Digitization: Research Challenges And Opportunities. Journal Of Business Logistics, 40(3), 229-240.
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