Concepts:

1. Supply chain shocks is the sudden change in the supply of a

commodity/service because of the changes in economy. In the article, there
were disruptions in the availability of goods sourced from china due to
Covid. The same is the case for FMCG goods, because supplies from other
countries were delayed. Panic buying led to shortage in supply of consumer
products. Lockdown only amplified the disturbances in production and
supply chain.

2. Supply chain resilience is the capability to be ready for unexpected risk

events, and being resilient enough to bounce back, like in the case of covid.
In FMCG sector, analytical tools need to be used to improve segmenting and
solve demand visibility issues. System thinking helps to view the supply
chain from an entirety perspective and it helps go back to previous state or
an enhanced new one.

3. Demand shocks are the sudden increase or decrease in the demand. Due to
covid people started to stock up large quantity of goods due to fear of
unavailability. This led to many FMCG food and sanitary products
becoming out of stock very quickly. This was coupled with the sudden
decrease in many other FMCG products such as candies, beverages etc
(consumer staple industries).

4. After shocks lead to Bull whip effect- may impact a major increase in the
manufacture side due to the unstable changes in the consumer end.

Shortage gaming are also affected in the market. The fear of unavailability
of products the consumers might have enabled the shortage gaming and it
may impact a very large effect in the manufacturing firms.

Due to lockdown demand for consumer goods reduced and many huge
brands announced huge reduction in production. FMCG brands like
Hindustan Unilever, Marico, Dabur, Nestle, and Emami have either scaled
down their manufacturing or have entirely shut down.
5. The new normal Economic recessions could be on the way because Covid
and lockdown has affected the economy very badly.

Inventory bounce is the major impact of all the aftershocks created by the
COVID situations. There will be cutdown of the production in order to
maintain the new steady state. There is a chance of production increase foe
new essentialities post COVID.

Most FMCG companies forged swift tie-ups with delivery companies such
as Zomato, Swiggy, Dominos, Big Basket and Dunzo to ensure that their
products reach the customers ordering online. Companies expect this
demand to increase over the pre-Covid levels since the lockdown prompted
people to get used to online ordering and the convenience of home-delivered
groceries.

Seizing the opportunity offered by Covid, almost every FMCG company

launched its brands in the hygiene categories of hand wash and sanitizer,
adding to the clutter in these categories that were otherwise small and niche.
This has benefitted FMCG businesses to a large extent.