The plague, the great depression in the last century, the Spanish flue did not kill global supply chains...

The vested interests on global supply chains are large...

The quest for lowest price has not run its course ...

Local supply chains may not be more sustainable ...

...

COVID-19 and the risk to food supply chains: How to respond?

www.fao.org › ...

PDFMar 29, 2020

In addition -- you can have a look on the COVID special issue on Environment

Many track the origins of globalization with the opening of the trade routes trade that sparked the Renaissance: and so, globalization will not be reversed in a day. That said, the experience of COVID-19 invites countries to take a look at what products are essential to their security—or some other aspect of policy such as public health—to make certain they have diverse and reliable supplies. There is no single solution and much will depend on the product in question; but, we are likely to see, for example, the rise of near-shoring or on-shoring of certain finished goods; the spread of supply across multiple suppliers, manufacturers, and geographic locations; the re-negotiating of contracts to allow for adjustment; a reduction in just-in-time inventory management practices; an increase in safety stocks; etc.

Both.

Any lockdown economy due to COVID-19 experience will certainly impact the supply chain depending on the length of the period necessary to flatten the curve

During more than two quarantine months, millions of people started using e-banking, e-commerce etc. Several small local businesses will never be the same again - affecting supply chains.

With the intensification of globalization, global supply chains have become much more interconnected. In addition, as emerging market economies have come to represent an increasing share of global GDP, goods often have to go through several stages before reaching the final consumer. From national closings to the borders closure and airspace, COVID-19 has caused an unprecedented disruption in the mechanics of most economies, regardless of their size or stage of development. COVID-19 has therefore put great pressure on global supply chains, including essential links related to food and medicines.

Anne, depending on whether people adopt the 'glass half full' or 'glass half empty' approach, the COVID-19 health and economic crisis can present either an opportunity of an adversity to a range of sectors and industries, including supply chain management. If the former, then more innovative ways of delivering such a service, including more creative measures of its facilitation via appropriate people management could be sought. I think this is a wonderful opportunity for professionals and academics in the area to rethink and re-conceptualise the whole idea about how to do supply chain and, by implication, how to manage it more effectively in the wake of a crisis situation. Interesting.

Anne, despite the devastating impact that the Coronavirus pandemic has had on individual lives and livelihoods, on business operations and profitability and on nation states' health and economic systems, this crisis also, bizarrely, presents a range of opportunities, not least for supply chains around the world. The crisis has demonstrated the need for novel and creative ways of moving services and goods/products not only locally but also internationally more effectively than before. To be able to do so effectively, new technologies, new people deployment and management and new socio-demographic and legal frameworks need to be tapped into by businesses and community groups. Interesting...

Dear Anne,

It may be true, no it is absolutely true.

According to German industry group VDMA, some 89% of its member companies experienced supply bottlenecks and parts shortages in April, slowing down production output in Germany. Similarly, more or less situation in all continent are same. Workers throughout the world companies are less available reflecting both disruptions in transportation systems and restrictions to stop the transmission of the disease, within and across borders. These factors induce overall disruptions in the logistics of the food supply chains, impeding the shipment of food and agricultural inputs, threatening food security and nutrition, particularly for the most vulnerable population segments. Logistics in food value chains includes all around world companies activities that enable the flow of agriculture inputs, outputs, and agriculture-related services, such as transportation, warehousing, procurement, packaging and inventory management. The efficacy of logistics is critical for the agro-food sector, education, pharmacy, gas based industries, construction and especially in agro sector in particular in times of crisis.

Brakthrough

There is a possibility to accept the challenge and alleviate the productivity on individual cluster.

But the same time, on the other hand, the breakthrough on agro sector might be really important as it is a regime of villages work plateform and away from corona impact. Breakthrough may take place in Industry covering all important parameters including development trends, market size, share, growth drivers, and challenges, cost structure, capacity, opportunities, key vendors and competitive. This is the time to come up specially the dim size MSME industries or small scale SME to incrase the size of the market through the supply chain and demand. In this regime, I see pharmacy and research and development companies are next fortune for the world to come top on demand as well.

Ashish

Dear Anne,

It may be true, no it is absolutely true. According to German industry group VDMA, some 89% of its member companies experienced supply bottlenecks and parts shortages in April, slowing down production output in Germany. Similarly, more or less situation in all continent are same. Workers throughout the world companies are less available reflecting both disruptions in transportation systems and restrictions to stop the transmission of the disease, within and across borders. These factors induce overall disruptions in the logistics of the food supply chains, impeding the shipment of food and agricultural inputs, threatening food security and nutrition, particularly for the most vulnerable population segments. Logistics in food value chains includes all around world companies activities that enable the flow of agriculture inputs, outputs, and agriculture-related services, such as transportation, warehousing, procurement, packaging and inventory management. The efficacy of logistics is critical for the agro-food sector, education, pharmacy, gas based industries, construction and especially in agro sector in particular in times of crisis. BrakthroughThere is a possibility to accept the challenge and alleviate the productivity on individual cluster.

But the same time, on the other hand, the breakthrough on agro sector might be really important as it is a regime of villages work platform and away from corona impact. Breakthrough may take place in Industry covering all important parameters including development trends, market size, share, growth drivers, and challenges, cost structure, capacity, opportunities, key vendors and competitive. This is the time to come up specially the dim size MSME industries or small scale SME to incrase the size of the market through the supply chain and demand. In this regime, I see pharmacy, agricultural and research and development companies are next fortune for the world to come top on demand as well.

Ashish

Dear Anne

I think positive effects could happen in very independent supply chains, the ones who not take high influence from external factors or logistics. But this condition is very dificult to be seen, and supply chains in isolated regions could suffer. For example, in Amazon, most of supply chains are very dependent from boats, even the ones based in very small productions. So, with the reduction of boat trips, to contain the spread of COVID-1, also the supply chains may shrink in this time.

In general, I agree with prior themes. Demand has forced demand for many global industries. As of Q3, 2020 some governments continue to prop up their economies. Global supply chains could shift in a big way by Q2, 2021.

Thanks guys. Good discussion! So far I see five categories - your comments are most welcome: -

1. Mass-produced low value commodities will still be shipped over the world from Low Wage Countries. New Zealand will not produce cheap plastic cutlery as it lacks economics of scale.

2. Specialised (high-end) commodities may also be shipped from over the world. NZ will not produce Teslas as it lacks know-how and manufacturing capabilities.

3. Critical goods (medicines?) and commodities with an emotional touch (food?) could be produced more in regional / national supply chains.

4. Goods that can now produced more cheaply or more reliably with Internet 4.0 technologies could be produced in regional / national supply chains.

5. Additionally, innovative goods that needs an eco-system and collaboratoin could now be produced more regionally seeing that collaboration and interaction with suppliers / partners from other countries seems more difficult.

6. ....???

Pls also see my research proposal in procurement & supply chains post-Covid19 in NZ. Enjoy weekend.