Impact of the COVID-19 on Global Supply Chain

Abstract

As the coronavirus pandemic engulfed the globe, it has disrupted economic activities, including supply chain networks in consequent to the existing interconnected trade networks making more countries to be more susceptible and major traders affected. This Chapter aims to analyse the COVID-19 effect on the global and sectoral supply chain and the structural policy and economic measures taken by governments and business organisations to recover and stay resilient during this challenging period. Systematic literature review approach focusing on challenges and policy and economic and business responses during the COVID-19 pandemic. Online databases utilising Scopus and ISI Web of Science (WoS) for studies published from 2019-2021. 28 journal articles were selected for the final review. There is compelling evidence that COVID-19 has made profound impact that governments and companies seek to strengthen operations and business resilience, underscore the importance of supply chain resilience and risk management is more critical than ever. Prolong COVID-19 trade measures such as borders closure, export embargo and import sanction are a threat to supply value chain and total lockdown should be implemented with caution. Currently, many companies have begun to move from a “recovery mode” to more “sustainable and resilient mode” and have started longer term planning. The implication of the study is that policymakers and business leaders should pay attention to more proactive and flexible policy, economic and structural business reform. This review will help policymakers and business leaders to enforce policy and economic as well as business reform that build upon resilient supply chain to mitigating economic risks in bad times to reduce the effect of COVID-19 on global supply chain.