“Influence of COVID-19 on the manufacturing industry and corresponding countermeasures from a supply chain perspective”
The article “Influence of COVID-19 on the manufacturing industry and corresponding countermeasures from a supply chain perspective by Cai et al.”. Presents the impacts that the recent Corona pandemic has had on manufacturing companies and offers solutions that can be used to recover from these impacts. Cai et al. presents Corona as a pandemic that has altered business all over the world, with some such as the SMEs facing the risk of bankruptcy due to interrupted supply chains and minimal funding and loaning by banks. Based on the article, manufacturing companies must make recovery plans that will be effective even in the future. The authors share insightful information that includes actual statistics, which can be useful for people in the manufacturing industry.
Cai et al. indicate that the impacts of COVID-19 have been far-reaching than those of any other pandemic, including the SARS. Apart from the effects that the pandemic has caused, the widespread and economic impacts being experienced can also be related to other factors, including the trade war between America and China and the exit of Britain from the European Union. I concur with this sentiment since, without these factors, it would be easier for these countries to join hands and find a quick solution to the main problem, which is the pandemic. With measures such as flight stop and lockdown of major cities, risks such as low production of raw materials and logistic issues have greatly affected the manufacturing industry.
According to the article, manufacturing companies have suffered two phases of impacts due to COVID-19. One of the phases is the pausing of production activities from major manufacturing hubs such as China, the US, Italy, and France, among others, while the second is the impact on the supply and demand chains. The business world today has become global, and I agree with the writers that many manufacturing companies have had to pause their production process. For instance, China is a manufacturing hub but depends on other countries for raw materials, which may not be available to logistic issues caused by the pandemic. On the other hand, a great fluctuation of supply and demand has been experienced with basic products being high demand and low supply. Due to the pandemic’s uncertainty, people fear losing their jobs in the future and are hence spending less on non-basic products. On the contrary, people have been bulk buying basic products due to uncertainty of future supply ability, and these factors have affected the manufacturing companies.
Another risk that has been posed by the spread of the Corona Virus involves SMEs who are involved in the manufacturing business. In my view, most SMEs had been struggling to survive even before the start of COVID-19 due to the slowdown of global economic business. However, it is even difficult for these SMEs with the ongoing pandemic since most do not have enough capital to sustain the high standards and working conditions that may need to function during the pandemic. Besides, increased operating costs and reduced demand pose a major threat to the SMEs. My sentiment about this is that the collapse of many SMEs will not only have an impact on people’s livelihood but also will affect the larger manufacturing companies which get their raw materials from these SMEs.
Cai et al. indicate that the impacts of COVID-19 are far-reaching, and its continuity is posing a greater risk to the manufacturing industry. The authors suggest that two ways that businesses can recover from this shock are by prioritizing regionalization as opposed to globalization as well as working on supply chain digitalization. However, I feel like these solutions may be effective for other industries where people can work from home, and information and services can be provided through digital platforms. For most manufacturing companies to run, they require people to be present and global involvement is essential since no region has all the raw materials needed to run manufacturing companies. A viable solution would hence be for these companies to ensure strict measures are put in place to protect those working there and partner with suppliers of raw materials who have been adversely affected to ensure raw products reach them uninterrupted.
The article “Influence of COVID-19 on the manufacturing industry and corresponding countermeasures from a supply chain perspective” provides relevant information relating to the impacts of COVID-19 on manufacturing companies. The article explains what manufacturing companies should expect and offers statistics on how different countries have been affected. I give the authors credit for providing unique information and statistics that can help businesses develop survival plans. Although the article offers various solutions, I would recommend looking for other solutions specially tailored for manufacturing companies.