Impact of COVID-19 on Supply Chain

COVID-19 on Supply Chain | Supplier Survey Snapshot 2020

Historically, procurement and supply chains have always been subject to disruptions caused by external factors and market variables such as tari wars, rising transportation costs and labor shortage.

In the majority of cases, organizations have tried to maintain normalcy of supply chains by depending on backup suppliers or diversifying the supplier base. But, this time things have not been the same. Consider a global health crisis originating in the world’s second-largest economy with the largest manufacturing output, and it’s an entirely dierent ball game.

Even as companies have started resuming operations across aected countries, the majority continue to reel under resource crunches, cash flow issues, demand fluctuations and other challenges precipitated by the pandemic. The need of the hour is to reassess risk management strategies, keep the communication lines open, bolster technological capabilities and rethink business continuity models.

In order to understand the impact of the pandemic on the extended enterprise and the steps taken by the affected organizations in this recovery phase, Avetta conducted a supplier survey with 406 respondents. The respondent suppliers were based out of the USA, Canada, United Kingdom and Australia and they catered to a range of industries.

This survey will discuss:

• The decline in overall business volumes
• Difficulties in conducting business
• Recommendations for moving forward