CHAPTER


DOI :10.26650/B/ET07.2023.004.10   IUP :10.26650/B/ET07.2023.004.10    Full Text (PDF)

Covid-19 Impact and Digital Transformation in Global Supply Chains

Ali Alsaç

The World Health Organization derived the name COVID-19 from the co of “Corona”, the vi of “virus” and the d of the word “disease” (disease), and the 19th from 2019, and the global scale of this epidemic It has been declared a (pandemic). States, economies, institutions, societies are being subjected to a serious test of resilience with the COVID-19 epidemic. The coronavirus epidemic has brought production and distribution networks all over the world to a standstill. Borders have been closed; international travel, face-to-face meetings, tourism activities and trade has come to a standstill. Countries that supply their essential needs such as pharmaceuticals, food, raw materials and industrial intermediates to a large extent from foreign countries have almost shuttered. The purpose of this research, conducted under these conditions, is to examine the relationship between the COVID-19 pandemic and its effects on global supply chains and management. The purpose of this research is to analyze the existing knowledge about the relationship. In this research process, we try to understand the effects of the COVID-19 outbreak on global supply chains and supply operations. It is aimed to provide an academic perspective on the lessons learned from the process and the proposed solutions. This study is based on structured literature research in the years 2020-2022. Specifically, five research questions are addressed: What disruptions are COVID-19 causing in global supply chains? How does the literature portray the supply chain lessons learned from the COVID-19 related disruptions? What are the suggested solutions in the literature against the problems caused by the pandemic in the supply chain? How will global supply chains work in the future? What are solutions focused on digital technologies, resilience and flexibility for the future functioning of global supply chains? Concerning the findings, the study contributes by proposing solutions based on lessons learned regarding the ongoing supply chain processes of the COVID-19 outage. Six supply chain vulnerabilities, six solution or resilience capabilities, and seven clusters of technologies deemed particularly useful in mitigating future pandemic disruptions were identified. Additionally, the interrelationships between different elements are explored and understood as an ongoing learning process that includes the process of discovering vulnerabilities, reacting to change, designing change, and implementing change. Based on these findings, a number of managerial implications and pathways are proposed for future research. This chapter argues that digital technology and artificial intelligence can mitigate adversity and strengthen the resilience and readiness of production and supply networks in the future.



References

  • Abdallah Ali, A. (2021). How can lean manufacturing lead the manufacturing sector during health pandemics such as COVID 19: A multi response optimization framework. Computers, Materials, & Continua, 13971410. google scholar
  • Agrawal, M., Eloot, K., Mancini, M., & Patel, A. (2020). Industry 4.0: Reimagining manufacturing operations after COVID-19. McKinsey, Retrieved from https://www. mckinsey. com/business-functions/operations/our-insights/industry-40-reimagining-manufacturing-operations-after-covid-19, 29, 2020. google scholar
  • Albanesi, S., & Kim, J. (2021). Effects of the COVID-19 recession on the US labor market: Occupation, family, and gender. Journal of Economic Perspectives, 35(3), 3-24. google scholar
  • Arafat, S. Y., Kar, S. K., Menon, V., Kaliamoorthy, C., Mukherjee, S., Alradie-Mohamed, A., ... & Kabir, R. (2020). Panic buying: An insight from the content analysis of media reports during COVID-19 pandemic. Neurology, Psychiatry and Brain Research, 37, 100-103. google scholar
  • Aryapadi, M., Chandra, V., Dekhne, A., Haddioui, K., Lange, T., & Venkataraman, K. (2020). Five actions retail supply chains can take to navigate the coronavirus pandemic. Mckinsey & Company Retail Practive (April), 1-7. google scholar
  • Aşkın, R. (2020). Pandemide yol almak. google scholar
  • Aven, T. (2013). On the meaning of a black swan in a risk context. Safety science, 57, 44-51. google scholar
  • Bakanlığı, T. K. (2017). İşgücü piyasasındaki gelişmelerin makro analizi. Ekonomik Modeller ve Stratejik Araştırmalar Genel Müdürlüğü. google scholar
  • Balcı, Y., & Çetin, Ö. Ü. G. COVID-19 PANDEMİSİNİN TÜRKİYE EKONOMİSİNDE İSTİHDAM VE ÇALIŞMA HAYATI ÜZERİNDEKİ ETKİLERİ: SORUNLAR VE ÇÖZÜM ÖNERİLERİ. google scholar
  • Baldwin, R., & Tomiura, E. (2020). Thinking ahead about the trade impact of COVID-19. Economics in the Time of COVID-19, 59, 59-71. google scholar
  • Barriball, E., George, K., Marcos, I., & Radtke, P. (2020). Jump-starting resilient and reimagined operations. McKinsey & Company.(Accessed on 6th January 2022). google scholar
  • Bartik, A. W., Bertrand, M., Lin, F., Rothstein, J., & Unrath, M. (2020). Measuring the labor market at the onset of the COVID-19 crisis (No. w27613). National Bureau of Economic Research. google scholar
  • Belhadi, A., Kamble, S., Jabbour, C. J. C., Gunasekaran, A., Ndubisi, N. O., & Venkatesh, M. (2021). Manufacturing and service supply chain resilience to the COVID-19 outbreak: Lessons learned from the automobile and airline industries. Technological Forecasting and Social Change, 163, 120447. google scholar
  • Borjas, G. J., & Cassidy, H. (2020). The adverse effect of the COVID-19 labor market shock on immigrant employment (No. w27243). National Bureau of Economic Research. google scholar
  • Cajner, T., Crane, L. D., Decker, R., Hamins-Puertolas, A., & Kurz, C. J. (2020). Tracking labor market developments during the covid-19 pandemic: A preliminary assessment. google scholar
  • Chenneveau, D., Eloot, K., Kuentz, J. F., & Lehnich, M. (2020). Coronavirus and technology supply chains: How to restart and rebuild. McKinsey & Company, 1. google scholar
  • Dalton, M. (2020). Labor market effects of local spread of COVID-19. US Department of Labor, US Bureau of Labor Statistics, Office of Employment Research and Program Development. google scholar
  • DE MEYER, A. (2020). It won’t be business as usual after Covid-19. google scholar
  • DeAngelis, S. (2021, Nov 30). Supply Chain Resilience is a New Imperative [Web log post], Retrieved from https://enterrasolutions.com/blog/supply-chain-resilience-is-a-new-imperative/ google scholar
  • Dingel, J. I., & Neiman, B. (2020). How many jobs can be done at home?. Journal of Public Economics, 189, 104235. google scholar
  • Durmuş, S., & Şahin, D. (2020). Covid-19 Küresel Salgında Dünyada ve Türkiye’de Uygulanan Ekonomi Politikaları Üzerine Bir Değerlendirme. Electronic Turkish Studies, 15(4). google scholar
  • El, H., & Mawet, P. (2020). How to restart operations after coronavirus shock: a logistics perspective. Logistics Manag, 59(5), 10-12. google scholar
  • Ellram, L., Flynn, B., Harland, C., Kovacs, G., Sarkis, J., & Tate, W. (2020). Report of the online forum action agenda for effective post COVID-19 supply chains. Technical Report. google scholar
  • Gray, R. S. (2020). Agriculture, transportation, and the COVID-19 crisis. Canadian Journal of Agricultural Economics/Revue canadienne d’agroeconomie, 68(2), 239-243. google scholar
  • Gu, X., Ying, S., Zhang, W., & Tao, Y. (2020). How do firms respond to COVID-19? First evidence from Suzhou, China. Emerging Markets Finance and Trade, 56(10), 2181-2197. google scholar
  • Gulsecen, S. (2014). Knowledge as an Asset and Knowledge Management. TURKISH LIBRARIANSHIP, 28(1), 62-68. google scholar
  • Hald, K. S., & Coslugeanu, P. (2021). The preliminary supply chain lessons of the COVID-19 disruption—What is the role of digital technologies?. Operations Management Research, 1-16. google scholar
  • Hammond, P. (2010). Adapting to the entirely unpredictable: black swans, fat tails, aberrant events, and hubristic models, University of Warwick. google scholar
  • Haren, P., & Simchi-Levi, D. (2020). How coronavirus could impact the global supply chain by midMarch. Harvard Business Review, 28(February). google scholar
  • HENRIKSEN, S. S., & Selwyn, M. (2020). M. How to protect global supply chains under threat from the COVID-19 pandemic. In Global Agenda. World Economic Forum (Vol. 5). google scholar
  • Hosseini, S., Ivanov, D., & Dolgui, A. (2019). Review of quantitative methods for supply chain resilience analysis. Transportation Research Part E: Logistics and Transportation Review, 125, 285-307. google scholar
  • IMF, “World Economic Outlook, (2020, April). The Great Lockdown”, [Web log post]. Retrieved from https:// www.imf.org/en/Publications/WEO/Issues/2020/04/14/weo-april-2020 google scholar
  • Ivanov, D. (2020). Predicting the impacts of epidemic outbreaks on global supply chains: A simulation-based analysis on the coronavirus outbreak (COVID-19/SARS-CoV-2) case. Transportation Research Part E: Logistics and Transportation Review, 136, 101922. google scholar
  • Ivanov, D. (2020). Viable supply chain model: integrating agility, resilience and sustainability perspectives— lessons from and thinking beyond the COVID-19 pandemic. Annals of operations research, 1-21. google scholar
  • Ivanov, D., & Das, A. (2020). Coronavirus (COVID-19/SARS-CoV-2) and supply chain resilience: A research note. International Journal of Integrated Supply Management, 13(1), 90-102. google scholar
  • Ivanov, D., & Dolgui, A. (2020). Viability of intertwined supply networks: extending the supply chain resilience angles towards survivability. A position paper motivated by COVID-19 outbreak. International Journal of Production Research, 58(10), 2904-2915. google scholar
  • Ivanov, D., Dolgui, A., & Sokolov, B. (2019). The impact of digital technology and Industry 4.0 on the ripple effect and supply chain risk analytics. International Journal of Production Research, 57(3), 829-846. google scholar
  • KAYABAŞI, E. T. (2020). COVID-19’UN TARIMSAL ÜRETİME ETKİSİ. Avrasya Sosyal ve Ekonomi Araştırmaları Dergisi, 7(5), 38-45. google scholar
  • Kilpatrick, J., & Barter, L. (2020). COVID-19: managing supply chain risk and disruption. Deloitte: Toronto, ON, Canada. google scholar
  • Mena, C., Karatzas, A., & Hansen, C. (2022). International trade resilience and the Covid-19 pandemic. Journal of Business Research, 138, 77-91. google scholar
  • NAKIBOĞLU, G. (2020). COVID-19 Küresel Tedarik Zincirlerinde Yaşananlar ve Dönüşüm. Çağ Üniversitesi Sosyal Bilimler Dergisi, 17(2), 1-16. google scholar
  • Narula, R. (2020). Policy opportunities and challenges from the COVID-19 pandemic for economies with large informal sectors. Journal of International Business Policy, 3(3), 302-310. google scholar
  • Naughton, K. (2020). Ford Tests Buzzing Wristbands to Keep Workers at Safe Distances. Bloomberg [Web log post]. Retrieved from https://www. bloomberg. com/news/articles/2020-04-15/ford-tests-buzzing-distancing-wristbands-tokeep-workers-apart. google scholar
  • OECD. (2020). COVID-19 and Global Value Chains: Policy Options to Build More Resilient Production Networks. google scholar
  • Okorie, O., Subramoniam, R., Charnley, F., Patsavellas, J., Widdifield, D., & Salonitis, K. (2020). Manufacturing in the time of COVID-19: an assessment of barriers and enablers. IEEE Engineering Management Review, 48(3), 167-175. google scholar
  • Özge, C. A. N. (2021). Covid-19 Salgınının Türkiye’Deki Işletmelere Etkileri: Sorunlar, Dönüşümler, Olanaklar. Atatürk Üniversitesi İktisadi ve İdari Bilimler Dergisi, 35(3), 833-863. google scholar
  • Pantano, E., Pizzi, G., Scarpi, D., & Dennis, C. (2020). Competing during a pandemic? Retailers’ ups and downs during the COVID-19 outbreak. Journal of Business research, 116, 209-213. google scholar
  • Parsons, T. (2020, April 23). How Coronavirus will affect the global supply chain. Baltimore, Maryland: John Hopkins Universty. Dostupno na [Web log post]. Retrieved from https://hub. jhu. edu/2020/03/06/covid-19-coronavirus-impacts-global-supply-chain/[23.04. 2020.]. google scholar
  • Queiroz, M. M., Ivanov, D., Dolgui, A., & Fosso Wamba, S. (2020). Impacts of epidemic outbreaks on supply chains: mapping a research agenda amid the COVID-19 pandemic through a structured literature review. Annals of operations research, 1-38. google scholar
  • Seifert, R. W., & Markoff, R. (2020). Digesting the shocks: how supply chains are adapting to the COVID-19 lockdowns. IMD [Web log post]. Retrieved from https://www. imd. org/researchknowledge/articles/supply-chains-adapting-to-COVID-19. google scholar
  • Shira, D. (2020, Nov 29) Q&A: COVID-19 and Response to Supply Chain Disruption in Vietnam [Web log post]. Retrieved from https://www.vietnam-briefing.com/news/qa-COVID-19-response-supply-chain-disruption-vietnam.html/ google scholar
  • Song, Y., Hao, X., Hu, Y., & Lu, Z. (2021). The Impact of the COVID-19 pandemic on China’s manufacturing sector: a global value chain perspective. Frontiers in Public Health, 9, 683821. google scholar
  • Taleb, N. N. (2007). The black swan: The impact of the highly improbable (Vol. 2). Random house. google scholar
  • Telukdarie, A., Munsamy, M., & Mohlala, P. (2020). Analysis of the Impact of COVID-19 on the Food and Beverages Manufacturing Sector. Sustainability, 12(22), 9331. google scholar
  • Ting, D. S. W., Carin, L., Dzau, V., & Wong, T. Y. (2020). Digital technology and COVID-19. Nature medicine, 26(4), 459-461. google scholar
  • Tranfield, D., Denyer, D., & Smart, P. (2003). Towards a methodology for developing evidence-informed management knowledge by means of systematic review. British journal of management, 14(3), 207-222. google scholar
  • Weissman, R (2020, March 24), Today’s supply chains are too lean, [Web log post]. Retrieved from https://www. supplychaindive.com/news/lean-supply-chain-jit-inventory-COVID-19/574693/ google scholar
  • Wuest, T., Kusiak, A., Dai, T., & Tayur, S. R. (2020). Impact of COVID-19 on manufacturing and supply networks—The case for AI-inspired digital transformation. Available at SSRN 3593540. google scholar
  • Zhu, G., Chou, M. C., & Tsai, C. W. (2020). Lessons learned from the COVID-19 pandemic exposing the shortcomings of current supply chain operations: a long-term prescriptive offering. Sustainability, 12(14), 5858. google scholar
  • Zimmerling, A., & Chen, X. (2021). Innovation and possible long-term impact driven by COVID-19: Manufacturing, personal protective equipment and digital technologies. Technology in Society, 65, 101541. google scholar


SHARE




Istanbul University Press aims to contribute to the dissemination of ever growing scientific knowledge through publication of high quality scientific journals and books in accordance with the international publishing standards and ethics. Istanbul University Press follows an open access, non-commercial, scholarly publishing.