Ceyhun Ozgur I would recommend you read review paper(s) on the topic to explore the topic: Article Ripple effect and supply chain disruption management: new tr...
Supply chain is an integral part of operations and processes of any organization, contributing significantly to the profitability or otherwise of the organization. An imbalance in supply chain networks, not well managed, would definitely impact negatively on company's ROI.
Consequent upon the above, disruptions to any or all of the three aspects of supply chain, will affect profitability positively or negatively. It could be positive in the sense that some risks turn to opportunities. The case of COVID-19 comes handy. There were many SC disruptions putting companies through financial crucibles but some companies like Unilever, through their strategic agility and flexibility, turned it to an opportunity by immediately converting the Leeds deodorant factory into hand sanitizer production factory within the period. Hand sanitizer was an essential ingredient in curtaining the spread of the disease during the pandemic and was, therefore, in high demand. Again, teleconferencing companies, like Zoom and MS Teams, leveraged on the global lock-downs to triple profit margins.
Again, some organizations practicing the lean strategy, like Toyota, were caught unawares and, ipso facto, lost in millions. Toyota did not have a reasonable stock of microchips which proved to be a key component in their raw materials. As such, inbound logistics was hampered due to the imposed lock-downs. Many other organizations suffered same fate.
Finally, because individual organizations are microcosms of the larger global economic macrocosm, a collective effect on them would cascade to the top and affect world economy. The bottom-line here is that supply chain disruptions do not have a unilateral effect on global economy because of divergent strategic perspectives.
Supply chain disruptions can have a significant impact on the world economies. When there is a disruption in the supply chain, it can cause delays in production and delivery of goods, which can lead to shortages and price increases. This can affect businesses and consumers alike, leading to decreased demand for goods and services and ultimately slowing down economic growth. Additionally, supply chain disruptions can also lead to job losses and financial instability for companies that rely heavily on imports or exports. Overall, supply chain disruptions can have far-reaching consequences for the global economy, making it important for businesses and governments to take steps to mitigate their impact.
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