UNIVERSITY OF CENTRAL PUNJAB

FALL 2020

SPRING 2021
Course Title: Retail SCM A
Course Code: MGMT

Assignment No. 1

Name of Course Instructor: Mustafa Hanan

Section: A Program: BBA Date: 27thMarch;2021

Submission Date: 27-03-2021 Maximum Marks: 5

Program Objective: Course Objective: Course Learning Objective:

Submitted by: Maha Rasheed

Page 1 of 3 Assignment
Q. what is the impact of Covid19 on Global Supply chains

COVID-19 has impacted and caused the huge disruption around the world in almost every aspect
it has changed not only the norms and lives of people around the world but also has changed the
dynamics of global businesses. Similarly, this pandemic situation has affected and changed the
global supply chain practices also. From suppliers to manufacturers and from manufacturers to
wholesalers and retailers everyone in the line of supply chain is facing huge challenges due to
this pandemic situation. Some of the major challenges that global supply chain is facing due to
this pandemic are:

 Inventory Level

Due to the unpredictable effect on supply chain at the start of this pandemic the suppliers ran out
of inventory For example, the demand of hand sanitizers unpredictably increased but shelves in
the stores were empty. So now looking further the situation of lockdowns many suppliers will
think to increase the inventory level by stocking the material. With further outbreaks and
lockdowns looking likely, it's a strategy that could well pay off in the coming months but
increasing inventory increases cost as it require more space and it is not possible for every
supplier to increase space and bear huge cost so yeah it is a challenge that global supply chain is
facing right now in this pandemic.

 Transportation of Goods

The raw material required to the manufacturers and its subcomponents come from different
countries around the world. All the finished and semi-finished goods are required to be
transported all over the world but, this pandemic situation has caused huge disruption in terms of
import and export of the goods. Looking at the increased cases of this virus the countries impose
restrictions on the transportation of goods which is impacting the global supply chain and
slowing down the system.

 Retailing

Page 2 of 3 Assignment
 Retailers globally have all been hit severely by the control measures to curb the spread
of COVID-19. The lock down and curfew scenario has led to the unique situation which
may lead to the exit of many retailers. But, the retailers are looking for alternative solutions
such as many retailers have chosen to promote their services online through social media
such as Facebook while others have expanded their coverage for home delivery service and
some are choosing to do nothing and  just waiting it out for the government to remove the
lockdown.

 Supply Chain efficiency

More stringent health and safety practices are likely to stay in place until near eradication of
Covid-19.  All these hygiene practices and extra precautionary measures are slowing down the
efficiency of supply chain. The requirement of workers to work at a 6 feet distance from each
other, sanitizing the things and transportation of goods in a proper hygienic environment is
causing disruption in the system and slowing down the work flow. But, fortunately this pandemic
situation has also improved the global supply chain efficiency in other things like due to the new
innovative ideas and technological advancement the productivity is increased as innovation is
often borne of necessity and we may see new and improved solutions coming to market which is
increasing the efficiency of supply chain.

To recapitulate, this pandemic situation has disrupted the entire global supply chain from
suppliers to retailers and from manufacturing of goods to the transportation of goods the entire
value chain is facing difficulties and challenges as this pandemic has resulted in traveling limits,
lack of labor and materials, as well as logistical challenges through constricted controls etc.
However, many new innovative ideas and technological advancement is also the result of this
pandemic which has given the global supply chain a unique experience.

Page 3 of 3 Assignment