SUPPLY CHAIN MANAGEMENT UNDER CRISIS

Rationale AND GAP :

Corona virus comes as a shock to the Global economy, no sector remain untouched with the
turmoil created by pandemic. It exposed the fragile nature of supply chain and leads to
unexpected disturbances in supply of various goods and services. Initially supply chain faces
supply shocks than demand stocks put a severe pressure on SCM ,it also witnessed “Bullwhip
effect” as nominal increase in demand leads to many fold increase in supply. Now supply chain
started adapting new conditions and it also searching for new opportunities in disguise. All the
initial mismanagement brings the entire system under halt which leads to sever effects on
wholesalers, retailers and customers. This research paper focuses on providing innovative
solutions for creating strong supply chain. This paper provides the roadmap to build error free
supply chain on the basis of “supply chain risk maturity model”.
A supply chain is a network between a company and its suppliers to produce and distribute a
specific product to the final buyer. This network includes different activities, people, entities,
information, and resources. The supply chain also represents the steps it takes to get the product
or service from its original state to the customer.Covid-19 which arose in the nation caused a
tremendous impact on the supply chain management . Government from all over the world are
worried about the declining economy of their countries. But now things are getting better but
not fully furnished . We need to take certain efforts for bringing Industries and supply chain on
track this is the reason why we should take certain steps which will help us to improve the
condition for local Shop owners, wholesale suppliers and customers as well .

Many models has been put forward by international scholars in order to deal with supply chain
crisis. Now we need to adopt these models by adding Indian perspective in it. On of the
effective model is supply chain risk maturity model. The research proposal shows that we need
to make some changes in this model and adopt in Indian supply chain scenario in order to tackle
crisis like COVID-19 and many others.

Along with supply chain risk maturity model. We can undertake employee education
campaign for making supply chain stronger. We need to develop infrastructure in order to
implement tailor made supply chain risk maturity model. Companies should understand
conferences to make everyone aware about model. In India we have limited resources and this
model required time and financial assistance too, so government should come up with concrete
policy to make this plan happen at ground level.
 OBJECTIVES :
1. To address the issues arising out of supply chain mismanagement during this pandemic.
2. To provide roadmap for better management of supply chain.
3. To give step by step solution for problem faced by supply chain

HYPOTHESIS :

1. COVID-19 has impacted supply chain of goods and services.

2. Supply chain has improved after lockdown.
3. Need to strengthen the supply chain to deal with uncertain situation in future.

RESEARCH DESIGN AND METHOD

The methodological section involves a brief discussion of the study area, sample design,
nature and source of data
1. Research design:
The research is based on impact study. It studies the impact of COVID-19 on supply
chain.
2. Research area and sample size:
The data is collected from the district Thane with the sample size of 30. Data is collected
from local shop owners (Footwear, Cloths, Food sector).
3. Sources of data :
• primary data – Primary data is collected with the help of questionnaire method
and interaction with local shops retail, Wholesalers, and suppliers in three sectors
i.e. Food, Clothes, and Foot wear are also conducted to gather the first hand
information about supply chain management.
• Secondary data-Secondary data is collected from various books, articles, blog,
web sources and magazines.
We can adopt Supply Chain Risk Maturity Model launched by SCRLC
Following is a brief analysis of model

SUPPLY CHAIN RISK MATURITY MODEL :

Supply chain management has become need of an hour, this pandemic worked as a awakening
alarm to strengthen supply chain. Supply chain is facing enormous loop holes that need to be
addressed . This research has provided measures to make supply chain stronger by
implementation of Supply chain risk and maturity model at wider scale. This Model provide
quick and easy to follow steps and by following them industries and firms can make their supply
chain efficient.
WHY SUPPLY CHAIN RISK MATURITY MODEL???
This model helps organizations to identify the risk related to supply chain that may have major
impact on them. This model assist the organization to secure supply chain while being cost
effective and industry specific. Model provides competitive advantage to the organization by
achieving various stages of maturity namely ;visibility, predictability, resiliency and
sustainability. Higher level of organizational maturity increases the ability to face the
uncertainty and risk. It helps the organization to secure following advantages :
1. Accurate forecast of cost, results and performance
2. Better control over cost and resources
3. Efficient management of each and every aspect of supply chain by getting internally
stronger
LEVELS IN SUPPLY CHAIN RISK AND MATURITY MODEL :
AT FISRT LEVEL, Importance is given to strengthen internal management of company,
functional process is developed by integrating different areas. This leads to reduction in
suppliers and logistics service providers, further rationalization of the product mix and a greater
volume of purchases.
AT SECOND LEVEL, priority is given to logistics and distribution aspects of company. It
leads to increase in effectiveness in physical distribution by meeting the demands of customers.
Companies focuses on prioritizing planning, programming and production.
AT THIRD LEVEL, companies redesign their inter organisational process. Efficient suppliers
are invited to participate in planning, operation and sales, allowing supply and demand to be
brought closer together. Importance is given to the consumer’s feedback about existing and
desired product.
This model mainly focuses on strengthening the logistics of the company and internal processes
to make goods and services available to the customers without any difficulty. As businesses are
growing and operating at global level so they also have many uncertainty related to
Competition, Climate, Disturbances and so on. By applying this model at larger scale will helps
the organisation to operate in an efficient manner. Therefore, this model is extremely relevant in
the times of pandemic and any other kind of calamity, as its ensure the development of
organisation at core and supply of resources without any disturbances.
PRELIMINARY WORK
Research studied the impact of COVID-19 on Supply chain with
reference to three major sector of economy namely ;Food, Clothing,
Footwear.
TABLE 1.1
DATA YES NO
Business affected 100% -
Reduce in sales 66.7% 33.3%
Problem faced during lockdown in getting the product Transportation Disturbance
and raw material problem-55.6% in supply
chain-44.4%
Problem faced in supply chain 88.9% -
Price increases 100%
Reduction in demand/supply of footwear 100% -
Reduction in demand/supply of clothing’s 66.7% 33.3%
Difficulties in restoring of food item 66.7% 33.3%
Supply of product/materials has become normal now 77.8% 22.2%
Procure product /material 66.7% 33.3%
Appeal to the government from the sectors for strong 100% -
supply chain
BY RESEARCHER

According Survey the respondents are in a state where they have faced actual problems in
getting raw materials. They are unable to find raw materials and also they are unable to sell their
goods at normal price. In such cases customer’s are also getting Goods at higher rate .The
market of food, footwear and clothing are effected equally because the main reason is not
getting product due to lack of transportation. During Lockdown nearly all sectors faced
problems in getting goods and raw materials. Research survey shows that the sectors under the
study are affected equally due to lockdown. Our all hypothesis turned out to be true covid has
impacted supply chain badly. After lockdown situation got better with some problem and yes
we need measures to deal with this kind of crisis.

EXPECTED OUTCOMES
The outcome of the research is to do accurate forecast of cost , results and performance . The
outcome is also to provide better management of supply chain and to understand the loopholes
in supply chain management during the COVID-19 .This research has provided measures to
make supply chain stronger by implementation of Supply chain risk and maturity model at
wider scale. This Model provide quick and easy to follow steps and by following them , This
model also focuses on strengthening the logistics of the company and internal processes to
make goods and services available to the customers without any difficulty focuses on
strengthening the logistics of the company and internal processes to make goods and services
available to the customers without any difficulty . As businesses are growing and operating at
global level so they also have many uncertainty related to Competition, Climate, Disturbances .
The first level , is to give Importance to strengthen internal management of company,
functional process is developed by integrating different areas. In second level , priority is given
to logistics and distribution aspects of company. In third level , companies redesign their inter
organizational process. Efficient suppliers are invited to participate in planning, operation and
sales, allowing supply and demand to be brought closer together.

BENEFITS TO THE SOCIETY

The benefits to the society can be in the form of monetary and non-monetary basis . The way to
predict the future changes will train the organization for unexpected situations just like
COVID19 . It will strengthen the internal management of the company. Also priority will be
given to logistics and distribution of the company so that the people will at least get the required
materials on time which will ensure at least first aspect of distribution . The supplier will be
invited to suggest certain changes if required in the process . If everything works as planned
then definitely the sellers and the buyers will have smooth functioning of the products which
will ultimately leads to monetary benefits to the seller and buyer will get non-monetary benefits
in the form of on time service .

FUTURE SCOPE
The research is always used as a reference paper for future problems . Similarly if again the
same issue of COVID-19 pandemic or any other lockdown event , in such case the same
research model will help the organization to get out of situation. It will guide the organization in
any unpredicted situations . If certain organization fails to adapt the entire solution But atleast if
the organization have even little information about this solution then it will be able to survive in
the market it won’t be completely vanished from the market .

SWOC ANALYSIS
STRENGTH WEAKNESS
● It will strengthen internal ● This process will be time
growth of organization consuming
● Required materials will be ● Priority will be given to
distribution and logistics
available on time
which can effect little delay in
● Supplier will be invited in the other department
organization to provide ● The company's priority will
solution get completely changed
 ● Buyer's and seller will have ● It would be little difficult to
smooth functioning adopt entire suggested
solution
● Due to time limitation and
adverse situation researchers
unable to see management of
industry by themselves.

OPPORTUNITY
● This research will act as a
reference for future
● The company will be able to
survive during unpredicted
situations
● Will help the organization to
predict future situation and they
can implement this suggested
solution
● Future risk can be identified and
the issue will come into notice
within less time so that there will
be no loss
CHALLENGES
● The solution itself is little
challenging as it will effect the
priority of particular company
● To train the employees regarding
the adopted solution will be
challenging
● As supplier role is there the
supplier must be frank enough to
give any suggestion and this would
be challenging

REFERANCES
1. What is Supply Chain Management (SCM)? February 19, 2020 | Robert Handfield,
Ph.D.
2. Digesting the shocks: how supply chains are adapting to the COVID-19 lockdowns
3. Coping in a unique moment By Professor Ralf W. Seifert, ETreatil 28 April 2020
4. Managing the impact Of COVID-19 on India’s supply chains - Now, Next and Beyond
July 2020
5. Petri Helo, (2009), Developing a maturity model for Supply Chain Management.
International Journal of Logistics Systems and Management, University of Vaasa.
6. Lennart Söderberg, Lars Bengtsson, (2010), Supply chain management maturity and
performance in SMEs. Operations Management Research volume 3, pages90–97(2010)
7. Ayers, J.B. (2004), Supply Chain Project Management: A Structured Collaborative and
Measurable Approach, CRC Press, Boca Raton, LLC
8. A Risk Maturity Model for the Modern Supply Chain Gregory Schlegel, SCB
Contributor February 12, 2020