You are on page 1of 14

Presentation On –

Functions of Supply Chain


Management (Pre- Covid
and Post -Covid)
Role of SCM

Supply chain management plays a vital role in the


management of flow of goods and services
Which includes all the processes that transform raw materials
into final goods .
It also includes also the functions which include product
development , marketing, operations,
distribution and customer service.
Effects of Covid on Manufacturing , Production and
Transportation Sector -

The COVID-19 pandemic has spread across the


world and infected a huge population . Major
production centers have been closed due to
worldwide lockdown, which led to severe supply
chain disruption.
With the shutdown in production activities and transportation
disruption, the global prices of raw materials and intermediate
supplies have increased . Border restrictions have led to a
temporary stoppage in human mobility and transportation
activities, which resulted in unparalleled pressure on shipping
and road freights, and created severe impediments for
international trade. Transportation disruptions have led to
substantial interruptions in actual goods flows, product mobility,
and have affected the entire supply chain, thereby leading to
operations shutdown, sales loss, late deliveries, and reputational
loss. Strong links between transport freight and trade have been
observed. The surge in transport freight costs had significantly
impacted the supply chain. Therefore, transportation has been
considered a vital logistical driver, which impacted the
responsiveness, efficiency, and performance of supply chains.
Effect on Healthcare supply chain and medical
equipment distribution-

Key strategies to avoid human to human


transmission of COVID-19 infection are via
social distancing and use of masks as well as
sanitisers. There has been enormous
pressure on healthcare supply chains since
the general public requires masks and
sanitisers and due to restrictions on
transportation and trade barrier SCM faced
high challenges in maintaining these needs.
Manufacturing challenges and their impact on
Healthcare-
The pandemic has had a major impact on companies that depended highly on
China for their raw materials and/or final products as factories, especially in
China, were not able to work at full capacity.
The demand for branded pharmaceuticals is expected to rise significantly as
the use of antiviral agents increases. China is a major supplier of active
pharmaceutical ingredients to producers of generic drugs all over the world.
Production of these ingredients has slowed down as a result of the lockdown
and factory closures. This has resulted in shortages and relatively higher costs
for the materials required to produce generic drugs, thus leaving producers
facing difficulties in making and supplying the products which disturbed the
supply chain at high level.
Effect on Food supply chain –
All types of food supply chains have been severely affected during
COVID-19 pandemic, for example, fresh vegetables, fruits, bakery
items, perishable goods, and finally, food grains . Scarcity of food
items is unavoidable in such a strict lockdown where most of the
logistics activities had been stopped. Due to the threat of getting
infected, the people have been prevented from ordering the food
from an online platform like Zomato and Swiggy . Which affected the
supply chain of food items resulting in the heavy loss for the
company.
Effect on Automobile Sector-

The pandemic has hit the automobile sector like never before.
"The pandemic has deepened woes of automobile dealers as
the coronavirus pandemic crippling most economic and
commercial activities will negatively impact demand for
automobiles," said India Ratings and Research.
The automotive industry suffered Rs 2,300 loss crore per day
and an estimated job loss in the sector was about 3.45 lakh,
according to a parliamentary panel report submitted to Rajya
Sabha Chairman M Venkaiah Naidu on Tuesday.
"
Effect on Hospitality Sector-

The hospitality sector is facing a repeat of 2020


as many states have strengthened local
lockdown rules.
This sector includes many businesses like
restaurants, a breakfasts, hostels, service
apartments, pubs, bars, nightclubs, and more
which are affected totally because of no tourism
and due to no supply of essential materials
needed for running these businesses.
Why are hospitality businesses affected?
Problems with food supply chains equal subsequent problems for hospitality
businesses, and because pubs and restaurants sit at the end of the chain, any
problems going on further up the chain will have an impact. Some of the key are
Areas of risk include bottlenecks in farm labour, processing, transport and logistics,
as well as significant demand shifts.

However, it’s important to acknowledge that many of these issues could have been
prevented. The reason supply chains buckled under the pressure of Covid-19 is
largely the fact that they were fragile, to begin with.

Issues, like businesses having poor visibility past their first-tier suppliers, as well as
poor supplier relationship management, have contributed to many hospitality
businesses having very little knowledge of what’s going on behind the scenes of
their supply chain. Covid-19 has simply revealed how extensive the issue is and how
alarmingly fragile many supply chains that we rely on are.
Role of Logistics -

Logistics is the backbone of an economy, as it ensures


free flow of goods and services required for the
functioning of industries and the economy. India’s logistics
sector is rapidly evolving despite facing enormous
challenges . Inadequate logistics infrastructure has
created several bottlenecks in the growth of the economy.
The biggest challenge faced by the Indian industry today
is the lack of integration of transport, distribution of
warehouses, different regulations imposed at the national,
state and district levels and trained and efficient
workforces.
Sectors that boomed during covid -

E-commerce
Like many of the other industries mentioned above, e-
commerce was already on the rise before the pandemic hit due
to our increasingly digitised & globalised world looking for
further convenience.
Yet, when communities were instructed to self-isolate and
businesses were forced to stop trading by government decree
to control the spread of the virus, e-commerce boomed not out
of convenience, but out of necessity.
Pharmaceutical sector-

Due to heavy rise in medical requirements like sanitisers ,


masks , oxygen cylinders , vaccine , medicines etc this
sector has boomed like anything despite of having pressure
of fulfilling the needs of everyone. In this process of
fulfilling the demands of everyone supply chain
management and logistics had played vital role which
made possibly available everything to the needy one’s.
THANK YOU

You might also like