Dear Colleagues and Friends from RG, In Europe, a significant number of manufacturing companies currently carry out their production based on accumulated inventory. Some components and semi-finished products necessary to conduct these production processes were manufactured, among others in China. If the production of these intermediates and subassemblies in China has been suspended due to the Coronavirus Covid-19 epidemic for several days or a longer period of time and / or transport logistics processes operate less efficiently than standard, then limiting the supply of those necessary for the production of intermediates and subassemblies may cause temporary suspension processes for producing final products in Europe and other economic regions of the world. Therefore, in many corporations and large enterprises, remodeling of organization and logistics processes is being considered in order to transfer part of the production of necessary components and semi-finished products to other countries and / or also the country where final production is carried out and a significant part of sales of the manufactured range. In addition, the economic problems caused, a decrease in the consumption of certain types of products and / or services, an increase in the role of e-logistics, reorganization of logistics chains, etc. will result in undertaking processes of technological, logistic, organizational restructuring in many enterprises, etc.
In connection with the above, I formulated the following research thesis: In connection with the development of the Covid-19 Coronavirus pandemic, remodeling of organization and logistics processes is currently under consideration in many corporations and large enterprises in order to transfer part of the production of necessary components and semi-finished products to other countries and / or also the country where final production and a significant part selling the manufactured range.
Do you agree with me on the above matter?
Please reply.
I invite you to discussion and scientific cooperation.
No they are not resilient. On the extreme, they are very sensitive considering that the pandemic of Covid-19 has affected all production sectors and deteriorated the purchasing power of resultant goods and services. On another hand, some products are in high demand yet their availability is limited such as is the case with health/medical supplies.
I'm going to play devil's advocate here. Yes, some supply chains are very sensitive. This is assured by low inventories and fast information sharing, which results in a "jittery" supply chain. On the other hand, past pandemics in human history almost always led to famine. I haven't seen any famine or lack of basic life necessities occur. It's shocking to see the impacts on the supply chains that are impacted, and the economic impacts, and there have been shortfalls of a few unforeseeable supplies, but at another level our systems have worked very well. Dollars don't measure every important outcome.