Adverse Effects of COVID-19 on Supply Chain

PROCUREMENT FREELANCERS

ADVERSE EFFECTS OF COVID-19 ON SUPPLY CHAIN

ACCORDING TO A STUDY, CORONAVIRUS HAS AFFECTED THE SUPPLY CHAINS OF 75% OF AMERICAN BUSINESSES.

Introduction

The world has been reeling under the impact of COVID-19 for a couple of months now.

This deadly virus has transformed American lives in ways many never thought possible.

With the closing of schools and colleges, stores shuttering early, and businesses going digital, procurement may be one of the last aspects in your mind. Business leaders are very well aware of the fact that a steady supply of key products is necessary to continue operating. The supply chain of many organizations is on the verge of major disruptions. Procurement subcontractors are of the view that the severity of disruptions is very likely to grow up with the spread of COVID-19.

IMPACT OF CORONAVIRUS ON SUPPLY CHAIN

Prices become unmanageable

Small companies are feeling the burden in more ways than one. As the purchasing power of these firms is less, suppliers are more reluctant to increase prices to unaffordable levels in the face of supply issues. Sourcing from local vendors is an effective way to combat this issue.

However, in these emergencies, the role of quality control experts is of no value to organizations as the global economy has come to a standstill. If the suppliers are closer to the stores, it will be easier for marketers to guarantee the continued delivery of everyday items. Joining a group-purchasing organization is also an effective approach. These firms leverage the combined buying power of their members while rescuing the small businesses in times of crises.

Communication issues

Until the outbreak of COVID-19, the procurement arena hasn’t been disrupted from the supply side. Coronavirus has halted international travel for an indefinite period. For an effective procurement function, meetings, check-ins, and networking opportunities are mandatory.

However, this is not possible because of the COVID-19 crisis. According to procurement experts in UK, the worst is yet to come. Though there are diverse digital alternatives, they are not up to the mark. For example, there is a significant difference between a video conference call and in-person meet-ups

Key personnel gets affected

For procuring stocks of companies, physical interaction is necessary. But, it is not possible as COVID-19 is a massive infectious disease. Companies need to practice several elements of the digital supply chain. If the procurement functions are digitized, companies can protect their key personnel from being isolated or quarantined..

Relying on digital supply chains is the only way to ensure a smooth flow of procurement functions even during calamities like COVID-19. Quality control experts need to be acquainted with the latest digital supply chain tools that assess the quality of products. If you want to continue your organization’s procurement operations, look no farther than a digital supply chain strategy.

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