Reflection on the Effect of COVID
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Reflection on the Effect of COVID-19 Pandemic on the Global Supply Chain
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Reflection on the Effect of COVID-19 Pandemic on the Global Supply Chain
Significant difficulties have been imposed on global supply chains as a result of the
COVID-19 pandemic. Multiple national lockdowns are still causing manufacturing disruptions
by slowing or even stopping the flow of commodities. On the other hand, supply chains have not
necessarily faced any new difficulties because of the pandemic (DeHoratius, 2020). Many
businesses have experienced staff shortages or even losses as a direct result of the spread of
COVID-19, and it has revealed vulnerabilities in some areas that had been previously
overlooked. On the whole, though, it has only made the supply chain's preexisting issues worse.
Many businesses around the world have had to adjust to a new normal since the COVID-
19 pandemic, and this has brought into sharp focus the need for crisis management mechanisms
that can help them weather times of uncertainty. Many businesses have entered "recovery mode"
and begun planning for the longer term, as the acute limitations and lockdowns in the early days
of the pandemic caused many urgent scenarios that required immediate attention
(Alicke, Barriball, & Trautwein, 2021). Supply chain adaptability and risk management are
becoming increasingly important as businesses look to fortify their operations and businesses.
Global businesses often rely heavily on manufacturing and supply chains based in China,
Southeast Asia, and other low-cost regions. These businesses have been compelled in recent
years by widespread global changes to reevaluate their supply chains in light of the future's
unpredictability (Alicke, Barriball, & Trautwein, 2021). Not only has COVID-19 begun to have
an effect on supply chains, but so have a wide variety of other spillovers and government actions
around the world, such as the rising risk of a tariff war, trends of nationalistic and protectionist
policies, issues of sustainability, and human rights concerns (Lopez, 2020). COVID-19 has
caused an international trade disruption, but the full extent of the damage caused by the epidemic
and the emergency measures taken has yet to be determined (Lopez, 2020). It is evident,
however, that companies have had to deal with significant operations and business disruptions,
such as minimizing the impact of reduced supply, coping with disruptions to logistical support
suppliers, and even facing challenges in fulfilling their own treaty duties to customers.
Although many enterprises have been flexible and prepared for change, those that have
not yet done so should make it a top priority to examine their supply chains in order to identify
potential areas where adjustments or preventative measures are needed (Lopez, 2020). It is
important to think about the possibility of quickly reversing changes if the situation settles down
or if the latest advancements require the supply chain to adjust quickly. This includes reviewing
contractual agreements, assessing force majeure provisions, tax and labor implications of
modifications, moving expenses, entry and residency permit issues for staff, exit potentials, and
more (DeHoratius, 2020). As a result of COVID-19, we have a rare opportunity to study the
reactions of many different systems and processes to sudden, extreme stress and change. It has
also highlighted the need to strengthen operations over the long term by making an investment in
supply chain resilience. It is crucial to put into practice the knowledge gained from recent events
as we move forward into the future.
In conclusion, many weak points in supply chains and new questions about globalization
have been brought to light as a result of the economic upheaval caused by the pandemic.
Managers everywhere need to use this crisis as an opportunity to reevaluate their supply chains,
assess their vulnerabilities, and fortify them against future threats. They can't and shouldn't turn
their backs on globalization because doing so would create a vacuum that wouldn't take long for
other businesses that don't abandon globalization to fill. Instead, managers should focus on
enhancing the efficiency and competitiveness of their respective organizations. It is time to
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embrace a different vision that's more in line with the complexities of the modern era, one that
still makes use of the capabilities found all over the world and also increases resilience and
lessens the risks associated with the inevitable disruptions that will arise in the future.
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References
Alicke. A., Barriball, E., & Trautwein, E. (2021). How COVID-19 is reshaping supply chains.
McKinsey & Company. Retrieved from
https://www.mckinsey.com/capabilities/operations/our-insights/how-covid-19-is-
reshaping-supply-chains
DeHoratius, N. (2020). How Will COVID-19 Change the Supply Chain? Chicago Booth.
Retrieved from
https://www.chicagobooth.edu/review/how-will-covid-19-change-supply-
chain
Lopez, C. T. (2020). COVID-19 Pandemic Reveals Supply Chain Vulnerability. DoD News.
Retrieved from
https://www.defense.gov/News/News-
Stories/Article/Article/2276540/covid-19-pandemic-reveals-supply-chain-vulnerability/