COVID-19 Impact on Supply Chain

COVID-19 Impact on Supply Chain

The novel coronavirus (COVID-19) has drastically affected the global supply chain. This is because the worst-hit countries are in the G7 category which plays an essential role in the production and distribution of products to countries across the globe. China, United States, Japan, Britain, France, Italy, and Germany are the hardest hit by the pandemic. These countries account for 60% of the global supply and demand and 65% of manufacturing takes place in the regions. Also, 41% of world exports are shipped from these nations thus influencing the global economic growth (Fernandes, 2020). The Economics in the Time of COVID-19 article states that the manufacturing sector has been disrupted by the pandemic. For instance, China’s economy relies on a direct supply of products to global markets but the lockdowns in various countries have disrupted its exports. This means that demand disruptions will emerge as various countries seek to contain the virus. Purchase delays by consumers will cause manufacturers to withhold their production which is likely to result in a decrease in supply for essential commodities in various nations.

On the other hand, the second article also discusses the impact of COVID-19 on top manufacturing hubs. Various factories have been closed which has affected the global supply chain. China tops in the production of medical equipment and there is a high demand for kits used to test the coronavirus. Recently, the country has opened up its industries after managing to contain the virus. However, they are not in a chance to meet the demand for the equipment since various countries in Europe, Africa and America are facing a rise in the cases (Yu & Aviso, 2020).

The major difference in the articles is that the first article explains the role of e-commerce companies in such times. These institutions have experienced increased growth during this period and consumers are making orders for commodities through the platforms. The second article solely relies on human resources to ship products to different global markets without utilizing the internet.

I have learned that it is important for companies to incorporate the latest technologies in their supply chain. This would enable them to continue in business amid such a pandemic. Amazon has efficiently utilized its e-commerce model and has been directly delivering products to its consumers (Carson, 2020). This has enhanced its economic growth meeting the market demand.


Carson, J. A. (2020). Innovation in Food Access Amid the COVID-19 Pandemic.

Fernandes, N. (2020). Economic effects of coronavirus outbreak (COVID-19) on the world economy. Available at SSRN 3557504.

Yu, K. D. S., & Aviso, K. B. (2020). Modelling the economic impact and ripple effects of disease outbreaks. Process Integration and Optimization for Sustainability, 1-4.

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