ASSIGNMENT OF

GLOBALLY IMPACT ON SUPPLY CHAIN INDUSTRY

(COVID-19)

Submitted To
Prof. Darpan Kumar Raja

Submitted By
Arshad Nizam
MBA/3-17/G015
INTRODUCTION ON COVID-19
Coronaviruses are a family of viruses that cause disease in animals. Seven, including the
new virus, have made the jump to humans, but most just cause cold-like symptoms.

Covid-19 is closely related to severe acute respiratory syndrome (Sars) which swept
around the world in 2002 to 2003. That virus infected around 8,000 people and killed
about 800 but it soon ran itself out, largely because most of those infected were
seriously ill so it was easier to control.

Another coronavirus is Middle East respiratory syndrome (Mers), cases of which have
been occurring sporadically since it first emerged in 2012 - there have been around
2,500 cases and nearly 900 deaths. 

Covid-19 is different to these two other coronaviruses in that the spectrum of disease
is broad, with around 80 per cent of cases leading to a mild infection. There may also
be many people carrying the disease and displaying no symptoms, making it even
harder to control.
CHINESE COMPANIES SHARES IN
GLOBAL SUPPLY
The new coronavirus disease, formally known as COVID-19, was first reported in the central
Chinese city of Wuhan. Since late-January, a wave of city-wide closures and quarantines in
China have shut down factories in the world’s second-largest economy, disrupting supply
chains globally.
Every third company has major Chinese customers and 81% of companies rely on Chinese
suppliers, noted risk methods, citing a survey by German supply chain consultant Kloepfel
Consulting.
Take toilet paper, for example. Demand has skyrocketed, but shelves are empty due to
production capacity and lead times constraints. The raw material used to make the tissue
paper you buy at the store is linked by a sophisticated network. The factory where it’s made
might not have enough labor or truck drivers to get the raw material to the factory or
product into warehouses, and from there onto shelves. This is what we mean when we say
that the end-to-end global supply chain has been affected.
CHINESE IMPACT ON
INTERNATIONAL MARKET
AUTOMOBILE IMPACT ON
INTERNATIONAL MARKET
CONCLUSION
 It will take us two to three months once the virus has passed through our system. China appears to
have stabilized the spread, but data transparency is a big issue. We can see the impact through the
third quarter before the supply chain stabilizes and normalizes.
Longer-term goals such as decoupling from China with a more diversified supply chain network will
take a few years at least.
At the Center for Global Supply Chain Management, we’re optimistic that this will pass, and we will
come back to normalcy with much better resiliency. For now, we think this situation is a great lesson,
and we will have a better global supply chain network that is resilient, agile and reliable in the future.