COVID-19 PANDEMIC IMPACT ON SUSTAINABLE AND GLOBAL SUPPLY CHAIN MANAGEMENT PRACTICE

• Main Author: Adhi Prasetyo, Hanif
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/68131
• Institution: Institut Teknologi Bandung

COVID-19 pandemic has emerged as a global health issue and created major disruption within the business world. The rapid speed of the unprecedented changes cause uncertainty and drive businesses to adapt with the new environment and mitigate the pandemic effect. Among many disciplines and fields in business, one specific aspect is chosen for this final project. That aspect is called supply chain management. The research in this final project focuses on finding out what changes exactly happen during the COVID-19 pandemic with follow up research questions that focus on mitigation strategy implementation and ends with discussion regarding the future of sustainable supply chain in the future. Key points in this research include supply chain management and sustainable supply chain. To limit the research scope, multinational consumer goods supply chains are being the main focus throughout the analysis. The research itself adopts a qualitative method with specific comparative case study methods to compare different companies mitigation strategy and assess the impact of it. Document analysis is being used to collect and analyze data. Through the research it was found that demands are unusually unstable, some sectors experience sudden increase while others plummeted. Disrupted physical movement of goods caused by lockdown and quarantine requirements and increasing shipping cost are also changes that are noticeable during the pandemic period. In addition to that, factory shutdown and social distancing policy limited production levels which led to failure in meeting global demands. Changes of consumer spending behavior due to loss earnings is one of the changes that need to be addressed by the businesses. After identifying the changes, several options of mitigation strategies can be implemented to reduce the risk imposed by changes. Proactive capabilities such as supply chain digitalization, transparency, visibility, and flexibility need to be owned by the businesses to strengthen their supply chain and prepare themselves for facing current crises such as COVID-19 pandemic and upcoming future crisis. Implementation of the mentioned capabilities would contribute to the resilience of the supply chain and create pandemic-proof supply chain. Another important point is sustainable supply chain management which incorporates environmental, economic, and social aspects on their targets and values. One thing to highlight is the fact that sustainable supply chain management practice has a positive influence on firms supply chain resilience. Sustainable procurement for example improves the resilience of businesses' supply chain through implementation of previously mentioned proactive capabilities and hence reduces risk in the long run. In conclusion, It is proven true that businesses need to implement mitigation strategies to adapt with the disruptive environment caused by COVID-19 pandemic. Creating and implementing the right strategy in accordance with the business both financial and non-financial capability are crucial in achieving strategy fit and generating optimum outcome. In the future, considering the positive impact and benefit of implementing a sustainable supply chain management practice within the business supply chain strategy, firms would integrate that concept towards the company values and goals as the main priority. Therefore, businesses can improve their supply chain resilience and be more prepare on facing crisis in the future,