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© 2020 IJRAR September 2020, Volume 7, Issue 3 www.ijrar.org (E-ISSN 2348-1269, P- ISSN 2349-5138)

IJRAR2002668 International Journal of Research and Analytical Reviews (IJRAR) www.ijrar.org 324

Impact of Covid 19- Pandemic on Supply Chain

Disruption in Food Items.

Authors:

Dr.Sushma Patil: Associate professor, GuruNanak Institute of Management Studies, Matunga, Mumbai,

And

Dr C R Chavan: Professor, Jamnalal Bajaj Institute of Management Studies University of Mumbai.

Abstract:

COVID-19 is disrupting global distribution on a large scale unseen in recent times. With the infection spreading

quickly and a several regions and economies in lockdown, the interruption to flexibility of supply chains is now

extreme. The supply chain is critical to getting goods and services quickly, rapidly, securely and safely to those

in danger of disease or who are working at the cutting edge of the clinical reaction. Therefore businesses are

being forced to innovate and adopt new digital tools faster than ever to minimize disruptions. Leaders are using

this opportunity to reset their operations with digital capabilities and renew their logistics operating models.

This reset will help increase operational efficiency and effectiveness. By doing so, companies will emerge from

the present crisis with more resilient supply chain to future disruptions. So in this research paper an attempt has

been made to study the impact of Covid 19 on supply chain disruption on food items, challenges faced by

farmers and possible solutions to overcome supply chain disruption and possible recovery of supply chains.

Key Words: Covid 19 Pandemic, Supply chain disruption.

Introduction:

Coronavirus COVID-19 is authoritatively a pandemic. This wellbeing and helpful crisis presents a genuine risk

to individuals over the planet. The World Health Organization has now overhauled the worldwide hazard to

"high", affirming this is undeniably a genuine test for humanity. The need is to ensure the wellbeing and security

of individuals, remembering for their work environments. Business pioneers must settle on fast choices, and

take prompt activities to secure and bolster their laborers while guaranteeing that basic business tasks proceed.

COVID-19 is a worldwide pandemic, developing at uncommon speed and scale. It is making a general basic

for governments and associations to make quick move to secure their people. Self-isolate, Social separating,

Network spread, These once dark terms are presently ordinary words. New propensities and practices are

shaping that by and large are not liable to leave after the emergency passes.

According to www.accenture.com, For customers, the most immediate impact is fear, not just for their

personal health but also for the economic impact.

http://www.ijrar.org/



The risk to supply chains:

With the infection spreading quickly and a several regions and economies in lockdown, the interruption to

flexibility of supply chains is now extreme. The supply chain is critical to getting goods and services quickly,

rapidly, securely and safely to those in danger of disease or who are working at the cutting edge of the clinical

reaction. Business pioneers must settle on quick choices, and take prompt activities to continue business tasks

to serve their clients, customers and networks, just as secure and bolster their laborers.

As per https://www.accenture.com, 94% of Fortune 1000 companies are seeing supply chain disruptions from

COVID-19,75% of companies have had negative or strongly negative impacts on their businesses,55% of

companies plan to downgrade their growth outlooks (or have already done so)

While there is a demand for goods, especially essential items, several manufacturing plants have been closed

temporarily, because of which the supply chain has come to a halt. On the international front, a majority of

flights have been suspended, disrupting the global shipping of goods. Further, the forced closure of factories

has pushed brands that are still operating to procure materials using alternative ways to meet the demand from

the people. While a sustainable supply chain is majorly driven by consumer demand, the lack of resources such

as transport and manufacturing, makes it challenging for the seamless functioning of supply chains around the

world. This may prove to be a challenge once the pandemic has passed and the world returns to normalcy, with

demand increasing.

According to KPMG report 2020,The nation is amidst a worldwide pandemic and with the direction around

social removing to counter the COVID-19 danger, it is legitimate to anticipate that purchasers should over-stock

on fundamentals items and wares. The current vulnerability around how the pandemic takes care of business

may bring about an uptick in spend by shoppers in classes like rice, flour and lentils. This may give a slight

stimulus to deals for FMCG organizations, and yet this might be killed by a drop in levels in 'stock-in-exchange'

because of potential flexibly chain interruptions. The e-commerce sector will also face the challenges due to

COVID-19 and may see a dip in growth. There will be increased pressure on supply chain for deliveries of

products and another challenge for Ecommerce companies is that they will need to equip their employees with the

appropriate resources to manage operations remotely with little or no disruption. Companies will explore newer

distribution channels focused on a ‘direct to consumer’ route. Further, demand forecasting will be a prominent

key and the customer relationship while focusing on the bottom line will be key. Supply chain seems to be the




big challenge as several states are evolving their strategies for food supply chain.Inter-state movement of labour

needs to be allowed for both primary agriculture and food processing sectors. Seasonal Industries like Mango,

seafood etc. need support on labour availability.

So in this research paper an attempt has been made to study the impact of COVID 19 Pandemic on supply chain

distortion with reference to food items and to suggest the possible solutions to overcome from the supply chain

disruption.

Literaure review:

Hobbs, J. E. (2020) in the paper titled “Food supply chains during the COVID‐19 pandemic” gives an early

evaluation of the ramifications of the COVID‐19 pandemic for food flexibly chains and gracefully chain

strength. The impacts of demand‐side stuns on food flexibly chains are talked about, including purchaser alarm

purchasing practices regarding key things, and the abrupt change in utilization designs from the food

administration part to dinners arranged and expended at home. Potential supply‐side interruptions to food

flexibly chains are surveyed, including work deficiencies, disturbances to transportation systems, and

"thickening" of the Canada–U.S. outskirt regarding the development of merchandise. At last, the paper thinks

about whether the COVID‐19 pandemic will have longer‐lasting impacts on the idea of food flexibly chains,

including the development of the online basic food item conveyance division, and the degree to which

purchasers will organize "nearby" food gracefully chains.

Daniel E. O’Leary. (2020) in the paper titled “Evolving information systems and technology research issues for

COVID-19 and other pandemics” analyzes a portion of the issues for inquire about necessities from data

frameworks and data innovation analysts, inspired as a component of the COVID-19 pandemic. The researcher

examined various issues, including encouraging work while social separating, contactless trade, individual

acknowledgment, when wearing covers or in different emergency circumstances, COVID-19 applications and

their effect on issues, for example, protection, publicly supporting, giving information, following cases, and so

forth. Likewise he explored the thought of individuals that have had COVID-19 and in this way may not be

defenseless against the ailment, versus, those that are as yet helpless against the illness. Likewise, a few

gracefully chain issues are discussed, for example, changing examples of flexibly and request, delicate flexibly

chains and autonomic flexibly chains. Further, various rising issues and the jobs of information, huge

information, and examination in the zone of changing and advancing work and their effect on associations and

electronic trade are discussed.

Mark Szakonyi, E. E. (2020, Apr 30) in research paper titled”COVID-19 to accelerate logistics industry toward

digital, low-growth reality”,discussed that, With sea and surface cargo volumes falling at a twofold digit pace,

on account of COVID-19 haven set up orders sapping worldwide customer and assembling request, the weight

is on compartment lines to coordination administrators to squeeze out efficiencies while as yet remaining serious

and adjusting to another financial scene. In the cargo sending industry, for instance, productivity in a high-lume,




lower edge depends on keeping shipments streaming at elevated levels to accomplish efficiencies and economies

of scale to take care of their overwhelming fixedexpenses. Some portion of that adjustment is changing physical

resources for lower request as well as increasingly extraordinary eruptions of payload, just as an exchanging

domain which fundamental hazard and protectionist exchange approaches energize progressively provincial

flexibly chains.

Gray, R. S. (2020) in the paper titled, “Agriculture, transportation, and the COVID‐19 crisis” evaluated how

COVID‐19‐related disturbances in transportation administrations, just as new requests for transportation

administrations, could affect Canadian rural gracefully chains. The concise investigation uncovers that rural

access to mass sea cargo, rail development, and trucking has commonly improved in the pandemic, supported

by the diminished interest for these transportation benefits by different divisions of the economy. The multi-

purpose containerized development of grains and food items has seen some interruption from the absence of

void holders in North America. The broad customer appropriation of physical removing measures has

incomprehensibly expanded the interest for retail food pickup and conveyance administrations to where these

administrations are being proportioned by long hold up times. From a strategy point of view it is suggested that

there is a need of flexibly chain checking and industry commitment, the proactive advancement of systems to

manage truancy and other potential dangers to the gracefully chain, and an evaluation of the monetary and

wellbeing benefits of giving extra open assets to give more noteworthy access to staple pickup and conveyance

administrations.

Objectives:

1) To study the impact of COVID 19 Pandemic on supply chain distortion with reference to food items.

2) To study Challenges faced by Farmers and fruit vendors due to pandemic.

3) To suggest the possible solutions to overcome from the supply chain disruption.

Government Initiatives in Covid 19 Pandemic for ensuring supply:

According to economicstimes.com,The union agriculture ministry has started an All India Agri Transport Call

Centre for coordination between states for inter-state movement of perishables - vegetables and Fruits, Agri

Inputs like seeds, pesticides and fertilizer etc. The Call Centre can be accessible from any mobile or landline

phones. This had facilitated interstate transportation of fruits and vegetables. Truck drivers, traders, retailers,

transporters or any other stakeholders who are facing problems in inter-state movement of above commodities,

may seek help by calling at the Call Centre. According to senior agriculture ministry official, “Call Center

executive will forward the vehicle and consignment details along-with the help needed, to state government

officials for resolution of issues,”

The government is also ensuring supply of seeds to states under National Food Security Mission (NFSM). The

subsidy pertaining to seeds under the scheme shall be for varieties less than 10 years. The official said that


https://m.economictimes.com/topic/India-Agri-Transport

https://m.economictimes.com/topic/National-Food-Security



around 4000 tonnes of pulses have been despatched to states for free distribution under Pradhan Mantri Garib

Kalyan Yojana (PM-GKY), which entitles ration card holders one kg of pulse per month for three months.

He said that fruits and vegetables are being sold directly by farmers after the centre sent advisories to states for

allowing direct marketing for farmers.“In Maharashtra, 21,11,171 quintals of fruits and vegetables have been

sold by 27,797 FPOs in 34 districts by online or direct sale method,” the official said.

Impact on food and grocery supply chain

Covid 19 pandemic has impacted agricultural sector lot. A lack of transport, market shutdowns, labour

shortages, strict action by police on transport and the stringent imposition of lockdown by local authorities have

put enormous strain on India’s food supply.

Prices of agricultural commodities such as perishable vegetables, grapes and sugar have fallen 15-20% as bulk

demand from hotels and restaurants has dropped and there is uncertainty over exports. Various industry bodies,

including those representing textile and poultry, have started approaching the government, seeking loan

restructuring and financial incentives to survive.

Traders across the country are struggling to combat rumours about closure of markets and attempts to create

artificial shortages.Demand for perishables has declined as bulk demand has stopped. However, there is more

demand for vegetables that have longer shelf life, such as onions, potatoes and tomatoes,” said Rajinder Sharma,

former chairman of Azadpur Agricultural Produce Market Committee (APMC) in Delhi.

Except chicken, demand for agricultural commodities has not been affected due to coronavirus either in India

or in the international market. However, farm-gate prices have fallen due to scare of Covid-19. “The export

price of grapes at farm gate has fallen from about Rs 100 per kg to Rs 70-75 per kg. However, packaging and

dispatches for exports have not decreased,” said Jagannath Khapre, president, All India Grape Exporters’

Association.

According to Confederation of All India Traders (CAIT),there is no shortage of grains and pulses in the country.

There is no dearth of material lying in the supply chain as most of the importers and the traders across the

country generally keep a buffer stock of 45-60 days. The supply chain is fully geared up with abundance of

material and it is hoped that for the next 15-20 days, the supply chain will be able to deliver goods.

Industry associations have appealed to the government for financial assistance and restructuring of bank loans.

“Due to the awareness created by the government to fight against the coronavirus pandemic, majority of workers

are not reporting for work and migrant workers are also returning to their native places. This situation is likely

to intensify and result in mass stoppage of production,” said Ashwin Chandran, chairman, Southern India Mills

Association.

With the expected steep reduction in demand due to sudden stoppage of exports and imports and also domestic

sales due to the closure of malls and retail showrooms, the industry is likely to face unprecedented and severe

losses. It needs immediate financial relief to mitigate the crisis.The poultry industry, which has suffered the




most due to coronavirus related rumours, has requested the government for restructuring of bank loans and

moratorium on interest and principal payments.

Challenges faced by farmers and fruit vendors:

Millions of farmers across the country are now dumping their perishable produce; fruits, vegetables and milk

are being disposed of into compost pits and irrigation canals. Even if farmers managed to take their produce to

the markets, there are fewer wholesale buyers. Large quantities of food are now stuck at the production level of

the supply chain in villages. As a result, supply chains have completely broken. Farmers are isolated from

wholesale and retail buyers in the cities leading to huge financial losses.

According to https://tigr2ess.globalfood.cam.ac.uk/news/broken-supply-chains-covid-19-lockdown-having-

devastating-effect-livelihoods-rural-india report,

A smallholder farmer from Kalburgi district of Karnataka state committed suicide as he was unable to sell his

crop. He cultivated watermelon in his three acres of farm, but, due to the nationwide lockdown, the transport

service he relied on to get his produce to market meant the fields went unharvested and the crops were left to

rot. Local media reported that he had invested huge money, time and effort to grow the watermelon, and that

looking at the rotting crop he became depressed and committed suicide. Several farmers in the district have

been growing more than 3500 acres of watermelon and more than 1000 acres of papaya for the upcoming

summer festival Ramadan, but the sudden lockdown has made their dreams collapse.

Another farmer from Karnataka state, Chikkaballapur district dumped six tractor load of grapes on the roadside

after the closure of the market. A lack of buyers, cold storage, processing and transport facilities, has led to

several farmers dumping their produce into pits.

The cost of production of grapes averages Rs 2.5-3.5 lakh/acre (£2700-3700/acre). During this period of

lockdown it is estimated that grape famers alone will lose around Rs 500-600 crores (£53-64 million) in

Chikkaballapur and Bengaluru Rural districts. Similarly, a farmer from Mandya district in Karnataka dumped

a truckload of Sapodilla fruits following market shutdown.

Another young farmer from Belagvi Taluk of Karnataka state, who had been growing tomatoes in his two acres

of land, has also suffered. Because of strict police action in the village, the non-availability of transport and a

fear of COVID-19 contact outside the village, he left his crops unharvested in the field. To grow the crop, he

had taken Rs one lakh (£1060) from the regional rural bank as a crop loan.During the last Kharif (monsoon

season), farmers lost the majority of vegetable crops due to heavy rains. They were in the hope of getting better

price this time, but this corona disease pandemic has again made their lives miserable.’

Similarly, a milk vendor of Belagavi district in Karnataka dumped 1500 litres of milk collected from farmers

into the irrigation canal citing there is no way to sell the milk during the lockdown.

The Indian government has announced relief measures - a welfare package of Rs 1.7 lakh crores (£18,137

million), but this seems too small to offset the losses the rural poor are experiencing as a result of COVID-19.


https://tigr2ess.globalfood.cam.ac.uk/news/broken-supply-chains-covid-19-lockdown-having-devastating-effect-livelihoods-rural-india


https://kannada.news18.com/news/coronavirus-latest-news/farmer-commits-suicide-for-not-without-selling-watermelon-at-kalburgi-hk-360821.html

https://www.thehindu.com/news/national/karnataka/coronavirus-lockdown-1500-litres-of-milk-dumped-into-canal-in-karnataka/article31215909.ece



Now, in the midst of increasing COVID-19 cases, farmers are fearful that lockdown may continue beyond the

current date, Such a scenario would further disrupt transport and affect the next kharif sowing season, through

a lack of seeds and fertilisers. This would significantly impact farmers livelihoods.

According to WWW.reuters.com,(Report by Rajendra jadav,Naveen hukral and Nigel Hunt “Coronavirus

upends global food supply chains in latest economic shock”) - In the fertile Satara district in western India,

farmers are putting their cattle on an unorthodox diet. Some feed iceberg lettuce to buffalo. Others feed

strawberries to cows.It’s not a treat. They can either feed their crops to animals or let them spoil. And other

farmers are doing just that - dumping truck loads of fresh grapes to rot on compost heaps.The farmers cannot

get their produce to consumers because of lockdowns that aim to stop the spread of coronavirus. In India, as in

many parts of the world, restrictions on population movement are wreaking havoc on farming and food supply

chains and raising concern of more widespread shortages and price spikes to come.

Such sprawling food production and distribution shocks illustrate the pandemic’s seemingly boundless capacity

to suffocate economies worldwide and upend even the most essential business and consumer markets. There

has been limited disruption so far to supplies of staple grains such as rice and wheat, although problems with

planting and logistics are mounting.

Indian farmer Anil Salunkhe is feeding his strawberries to cows because the local tourists that usually eat them

are gone, as are the fruit vendors that once worked the streets of the nearby metropolis of Mumbai.“Nobody

was willing to buy strawberries due to the lockdown,” Salunkhe told Reuters as he fed strawberries to a cow in

Darewadi village, in Satara district.He can’t even give his strawberries away: With stay-home orders in place,

few villagers ventured out from their homes when he offered them the berries for free, he said

According to report titled the-pandemic-destroys-livelihoods-before-it-destroys-lives, Last year, the monsoon

lasted long enough that a good amount of crop was destroyed, especially in Maharashtra. 30-40% of grapes

were destroyed, and what happened to the onion crop and resulting price hikes became a matter of memes. Mr

Vilas Shinde, founder of India's largest farmer collective of small-landholding farmers, in a single district of

Nashik alone, over 30,000 acres worth of grapes remain to be harvested. This is approximately 4 lakh tons of

grapes yet to be harvested and sold. Add to that, there is a hailstorm in the month of March in districts of

Marathwada, resulting in the destruction of primarily the wheat crop.

Apart from these crop losses, the immediate impact of the pandemic has been on labour that is required for

harvesting, transport, packaging, etc. It's a real possibility that a good amount of the produce will be lost simply

because of the unavailability of labour. Although food supply has been deemed as a critical sector and promises

have been made to keep it running unabated, it's simply going to break down.

Fruits and vegetables that were procured from other states and distant regions will simply stop making their

way to their older destinations.


http://www.reuters.com,(report/



According to KPMG Report 2020, the impact on

Food retail: Several state governments have already allowed free movement of fruits, vegetables, milk

etc. Due to fake propaganda, poultry sector (eggs and chicken) is heavily impacted. Fresh meat, seafood

have erratic supply chain as there is no clarity from state governments on retail shops. Brick and mortar

grocery retail chains and shops are operating normally but shortage of staff is impacting operations. It is

expected that prolonged lockdown will result in increased demand for food supplies. Online food grocery

platforms are heavily impacted due to unclear police restrictions and stoppage of vehicles4. Last mile

delivery platforms are impacted too5. States are working out policies for food movement which are likely

to ease the situation.

Food processing: All food based industries are allowed to function normally. There are few issues on

interstate movement of skilled and semi-skilled labour that needs to be sorted out. Raw material supplies

are not impacted as of now and the measures taken by central government should ease supply chain

issues. Factories should adjust to working with less labour force and overtime to meet demand. Domestic

market based players should not have a problem.

Food exports: Major destinations like the U.S. Europe, China will grapple with COVID-19 for the next 6

months and Indian export based companies will be impacted due to low consumer demand and port

hurdles. Partial diversion of export inventories to domestic market will help the players in the interim.

Farm gate prices for export oriented commodities like seafood, mango, and grapes are crashing and this

will impact future crop availability.

Supply chain disruption of Alphanso Mangoes:

Accrording to moneycontrol.com,Exports of fruits, including Alphonso mango, grapes and pomegranates, had

been hit badly this year following the breakdown of supply chain and lack of demand as the world is grappling

with an economic slowdown due to the COVID-19 pandemic.The export of Alphonso mango has already begun

to Europe and the Middle Eastern countries. However, exporters are expecting exports to be badly hit and there

will be weak demand. During this kind of scenario people usually give preference to essential commodities and

imported fruits are considered a luxury,” exporter opined.

According to Indian express report titled Maharashtra: Alphonso feels the heat, farmers struggle to reach

markets,Every summer, customers wait for the Alphonso. This year, for the first time that in the mango business

for 30 years, it is the king of fruits that is waiting for buyers. Still, mango suppliers don’t expect to come

anywhere close to their usual sales of from their about 800 mango trees from two orchards in Mirya and Malgund

in Ratnagiri district. They are readying about 1,000 boxes, last year they sold 2,500 .




As per Vivek Bhide, the president of Konkan Hapus Amba Utpadak va Utpadak-Vikrete Sahakari Sanstha, a

cooperative of mango producers and sellers, the three districts of the Konkan region produce 3.5 lakh metric

tonnes of mangoes each year. Ratnagiri alone has orchards spread over 65,000 hectares, producing 1.3 lakh

tonnes of the fruit annually.An estimated 30,000 to 40,000 metric tonnes of top-grade mangoes from Konkan

are exported every year, to Europe, the Gulf, Australia, Japan and the US among other markets. However, the

demand from the overseas market also diminished in the wake of the global pandemic this year.

The Konkan region’s other mainstays, cashew and tourism, are also hit, in what are their most lucrative months,

of March, April and May.

Amid the lockdown, mango farmers reached out to the government to facilitate the retail sale of Alphonso in

districts including major markets like Mumbai, Thane and Pune.

While Alphonso rates, in the range of Rs 800 to Rs 2,000 for a peti (box of four to seven dozen mangoes), are

not dramatically lower than earlier, problems in supply chains have made the business sluggish, said Bhide.

“Usually by April 20, most farmers have sold 50 per cent of their produce,” he said.

As per Amar Desai, a third-generation mango farmer, not just the fresh fruit, with its short shelf life, but also

the mango processing business has been affected. A number of small and micro-entrepreneurs in Ratnagiri trade

in mango products like sweets, pulp and bottled juice, pointed out Desai, whose grandfather set up the famous

mango shop Desaibandhu Ambewale in Pune in 1932.

Umesh Lanjekar, the proprietor of Anish Farms in Ratnagiri, was the first in Konkan to procure an X-ray

machine to detect spongy tissue in the mango, a ripening disorder in the Alphonso, and ensures only good

quality mangoes are processed further. Lanjekar, who runs a mechanised facility that helps increase the mango’s

shelf life and exports mangoes to countries including USA and Germany, said that due to Section 144 over one-

and-a-half months of the lockdown, they could not have more than four workers in their fields at a time, against

20 usually.

“Though the administration issued passes for trucks to take the product to Mumbai, forwarding agents were not

available to do the paperwork for exports,”As per Lanjekar, after loading boxes of mangoes in a truck going to

Satara .

Sunil Pawar, the managing director of the Maharashtra State Agricultural Marketing Board (MSAMB), said

that they have started to directly link farmers with consumers in urban areas now. The board has a list of mango

farmers ready for this up on their website. “We have also started sending vehicles to districts like Satara, Nashik,

Sangli and Kolhapur for farmers to sell to consumers there,” he said.

Pawar said around 300 tonnes of mangoes have been sent to buyers in other cities via the Board’s intervention,

while around 2,235 tonnes have left for markets abroad, mainly the Middle East, from its Vashi treatment centre.

Some of the wholesale traders have even tied up with food delivery applications like Zomato to home deliver

mangoes,” he said.

Konkan Bhumi Pratishthan, an NGO associated with around a thousand mango farmers that works with the state

government, stepped in to enable farmers to reach their urban customers. Founder Sanjay Yadavrao said that


https://indianexpress.com/article/explained/pandemic-explained-who-novel-coronavirus-covid19-what-is-a-pandemic-6309727/

https://indianexpress.com/article/explained/what-is-section-144-crpc-jammu-and-kashmir-5878543/



Alphonso sale may drop to Rs 1,000 crore as opposed to Rs 3,000 crore registered last year. They started via

social media. Now the demand is so high, they are trying hard to fulfill itAmar Desai fears the pinch may be

felt the most ahead of the next harvest. “Whatever the farmer earns during March, April, May is what sustains

him for the year. He uses it in October-November for his next harvest.”

While the rates of the Alphonso have been in the range of Rs 800 to Rs 2,000 for a peti (box of four to seven

dozen mangoes) are not dramatically lower than what they are every year, mango farmers said with the supply

chains hit during the lockdown, the business this year lacked momentum.( With inputs from Partha Sarathi

Biswas in Pune)

Supply Chain issues in FMCG Companies:

According to https://retail.economictimes.indiatimes.com report titled “FMCG cos stepping up production under

eased norms but labour, supply chain issues impede”,FMCG Companies like Patanjali, Ruchi Soya, Dabur

and Parle Products that have been operating their plants in a scaled down manner during the first phase of

lockdown with limited workforce suggested giving manufacturing permission to their several suppliers, which

are mostly MSMEs and fall within the city radius, as it is affecting smooth functioning ofthe supply chain.

According to Yoga Guru Ramdev ,"Factories of Patanjali and Ruchi Soya were operational even during the

lockdown because we operate in food and essentials. However, there were issues regarding transportation and

supply chain etc during lockdown".According to him, Patanjali witnessed almost two to three fold jump in the

demand of its several products and expected that supply of such products would be increased in the market

going forward.

Similarly, Dabur India Executive Director-Operations Shahrukh Khan said, "Almost all of Dabur's factories are

operational , producing a range of ayurvedic medicines, hygiene products like hand sanitisers, hand wash and

daily essentials, with strict implementation of SOPs for social distancing at offices, workplace, factories, proper

sanitization of buildings, factories."

Khan also suggested manufacturing permission to its several suppliers, which are mostly MSMEs and fall within

the city radius, as it is affecting smooth functioning of the supply chain.

He insisted that "It is our request that companies that do not have any instances of COVID cases may be

permitted to operate even if they fall within the radius of a hot spot, provided they adopt and implement all

safety protocols and screening measures, and follow social distancing norms. This would ease the pressure on

the supply chain and ensure timely production and delivery of essential goods and hygiene products to

consumers,"

Parle Products Category Head Mayank Shah said that food was exempted and factories were open but at a

reduced capacity of around 40-45 per cent following the restraint imposed by the government on the number of

workforce.


https://retail.economictimes.indiatimes.com/tag/patanjali

https://retail.economictimes.indiatimes.com/tag/parle+products



Capital Foods , the parent company of Ching's Secret and Smith & Jones brands, said it has received permission

to operate its plants.According to Capital Foods CEO Navin Tewari,They have received the nod to operate all

our plants and barring one, all are operational too. Their swift understanding of the challenges elaborated above

made them move quickly. Within 48 hours of receiving nod,their first plant was operational and they are

currently operating at around 60-70 per cent capacity across all our products,"

However, he also raised concerns over availability of labour force, which has migrated after lockdown.

According to CG Corp Executive Director Varun Chaudhary they are running at reduced capacity currently. He

added that Truck availability will improve and distribution within cities will smoothen out, which will in turn

help their teams replenish stocks and bridge the gap between demand and supply,"

Possible solutions for recovery of disrupted supply chain:

According to KPMG report 2020, there are seven ways in which the business landscape will shift, not only

in India, but the world around. By using this businesses will leverage to certain extent.

1. The shift towards localization

The supply chain disruption is expected to lead to more towards localization of supply chains, especially

of essentials and for sectors that are seen as strategically important.

2. Move towards digitization

Most organizations have selected to work remotely and their representatives are currently 'on the web'

and telecommuting. While these patterns were at that point 'moving', they have now hit the quick forward

catch. Indeed, even the most physical associations have been compelled to try different things with

computerized channels. This presents a genuine and prompt chance to drive efficiencies through

computerized. Simultaneously, this emergency has featured the significance of interest in empowering

advances like cloud, information and digital security. This will change the way we 'work' with expansive

ramifications on B2B, B2C, B2G administrations, business land, online business, e-administration,

digital security, process robotization, information investigation, self-administration capacities, and so on.

3. ‘Cash is king’ for businesses

This circumstance has demonstrated, by and by, that money is above all else - organizations that are over

utilized and 'living on the edge' are the most helpless. The emergency has emphasized that it is imperative

to be monetarily judicious and moderate money.

4.Move towards variable cost models

Probably the greatest exercise, among others, is the significance of diminishing generally business costs.

One huge approach to achieve this is to change over fixed expenses to variable expenses any place doable.

For example, organizations will presently figure out what they should keep in-house, and investigate




redistributing the rest with the goal that fixed expenses can be brought down. Likewise with different

patterns, this will additionally affect the work power and 'how they work', contract producing, gracefully

chain contemplations, and so forth.

5.Building sensing and control tower capabilities

Elective information can offer bits of knowledge into an action, with a shorter time slack, that

conventional measures may not. This is particularly relevant for regions where data is rare or flighty.

The drawback to this are additionally difficulties, for example, short accounts, assortment

frameworks that are inclined to change and so on. By the by, governments and organizations have

understood the significance of detecting capacities, building straightforwardness through 'advanced

control towers', 'computerized twins' and the capacity to process both organized and

unstructured information. For example, examination organizations are currently mining elective

information, for example, car influxes, nourishment orders and so forth to follow COVID-19 stun.

This pattern is just expected to get.

6.Supply chain resilience is key

While localisation is a pattern we secured before, singular organizations will need to guarantee their

flexibly fastens are strong to stay serious. Dangers to flexibly chains are various and consistently

advancing. Consequently, it is basic that versatility capacities are created so as to react to repercussions

of sudden occasions and either rapidly come back to unique condition of business or move to another and

better state in the wake of being influenced by the hazard and proceed with business tasks as productively

as could be expected under the circumstances. Accomplishing this will require activities from both inner

business just as from the more extensive system.

7.Building agility

The progressing pandemic is compelling nations and organizations to take snappy activities without

flawless information, while remaining client driven, tending to representative needs and fortifying

stable group elements. It has likewise caused them to consider upon the empowering systems that

should be set up to react to any sudden occasions later on. Going ahead, strategies should develop

quicker than the market and policymakers should be progressively responsive, comprehensive and

light-footed




According to McKinsey’s report, ‘Supply chain recovery in coronavirus times - plan for now and the future’,

it was discovered that there are six sets of issues that require efficient action across the end-to-end supply

chain amidst COVID-19. These are:

Create transparency

Estimate available inventory

Assess realistic final customer demand

Optimise production and distribution capacity

Identify and secure logistics capacity

Manage cash and net working capital

Create transparency

Following the identification of the critical components, organisations can subsequently assess the risk of

interruption from tier-two and onward suppliers. This stage of planning should include asking direct questions

of tier-one organisations about who and where their suppliers are, as well as creating information-sharing

agreements to work out any disruption being faced in tier-two and beyond organisations. Manufacturers should

engage with all of their suppliers across all tiers in order to establish a series of joint agreements to monitor lead

times and inventory levels as an early-warning system for interruption and work out a recovery plan for critical

suppliers by commodity.

Estimate available inventory

Lots of businesses would be surprised at how much their inventory sits in their value chains and should work

out how much of it is available. Estimating the inventory along the value chain helps capacity planning during

a ramp-up period. Specific categories include:

Finished goods held in warehouses and blocked inventory held for sales, quality control and testing.

Spare parts inventory that could be repurposed for new product production.

Parts with lower grade ratings or quality issues, which should be assessed to work out if the rework effort

would be justified to solve quality issues.

Parts in transit should be considered to see what steps can be taken to speed up their arrival, including those

in customs or quarantine.

Supply currently with customers or dealers should be considered to see if stock could be brought back or

transparency could be created for cross-delivery.

Assess final customer demand

When a crisis happens, it is important to forecast demand. To prepare correctly, organisations should develop a

demand-forecast strategy, which includes defining the granularity and time horizon for the forecast to make

risk-informed decisions in the S&OP process,Use advanced statistical forecasting to obtain a realistic insight


https://www.mckinsey.com/business-functions/operations/our-insights/supply-chain-recovery-in-coronavirus-times-plan-for-now-and-the-future?cid=other-eml-alt-mip-mck&hlkid=53e98fdcbca84440a9da62b8aa318d06&hctky=11800216&hdpid=8044609a-0e2e-4a2a-9818-d7877df47684



into base demand,Integrate market intelligence into product-specific demand forecasting models,Ensure

dynamic monitoring of forecasts in order to react quickly to inaccuracies.

Optimise production and distribution capacity

With demand forecast, the S&OP process should be able to optimise production and distribution capacity.

Scenario analysis can be used to test different capacity and production scenarios to understand their financial

and operational implications. Optimising production starts with ensuring employee safety. This will include

sourcing and engaging with crisis-communication teams to communicate effectively with employees about

infection-risk concerns and options for remote and home working.

Identify and secure logistics capacity

In the midst of a crisis, working out the current and future logistics capacity by mode is even more vital than

ever before. As organisations seek to increase productions and make up time in their value chains, they should

prebook logistics capacity to reduce exposure to potential cost increases. Working with partners can be

considered an effective strategy to gain priority and add capacity on more favourable terms.

Manage cash and net working capital

As the coronavirus continues to take over, constrained supply chains, decreasing sales and significantly reduced

margins will add more pressure on earnings and liquidity. Companies will require all available internal

forecasting capabilities to stress test their capital requirements on weekly and monthly bases. It remains

imperative that supply chain leaders focus on freeing up cash locked in other parts of the value chain. Decreasing

finished-goods inventory through thoughtful, ambitious targets that is backed by robust governance can help

towards achieving substantial savings.

According to https://yourstory.com/2020/04/supply-chain-logistics-industry-brunt-coronavirus-lockdown other

possible solutions to counteract supply chain disruption would be

Clearance of leftover stock

One of the significant angles that organizations managing insignificant things should concentrate on is the

loading up of materials or items. When just fundamental things and administrations are being allowed, the

supply of all insignificant things would be accumulated in distribution centers. Information shows that

shipments that were stuck (orders which were yet to be examined) were at 9 percent, and deferred orders flooded

to 21 percent between March 10-20, 2020. When organizations continue their activities and creation begins,

guaranteeing that the prior stocks are cleared will be a worry.


https://yourstory.com/2020/04/supply-chain-logistics-industry-brunt-coronavirus-lockdown



Technology-led transformation

Technology has led to a paradigm shift in the operating methods of urban logistics and supply chain management

sectors. During such challenging times when there are limited resources available, technological advancements

have come in handy in more ways than one.

Thus redesigning or resetting of supply chain can be done by different ways like rethinking distribution and

embracing direct-to- consumer systems, accelerating mechanisation, prioritizing risk mitigation instead of cost

optimization, adopting scenario planning and war gaming, redesigning the organization, digitising extensively,

improving visibility, increasing flexibility, Communicating effectively, Supporting the workforce

Conclusion:

The increasing widespread of COVID-19 has transformed the world’s hustle into varying degrees of uncertainty.

One of the few things that seem fairly certain is that the current downturn is fundamentally different from

recessions we have seen in the past. This is not just another turn of the business cycle, but a shakeup of the

world economic order. While countries and companies continue to comprehend the scale of this pandemic, it is

certainly undeniable that we are staring at more permanent, structural changes to the way we live, work and

play.

Covid-19 has brought global and domestic supply chains to a halt. While all organizations are, rightfully,

focused on getting back on track and preparing for the post lockdown bounce back, this is also a good

opportunity to re-imagine supply chains on a clean slate. The current supply chains across industries have

evolved over time and are not necessarily the best suited for the current and future scale of operation. Typically,

organisations have multiple layers between manufacturing and the end consumer, with many days of inventory

in the chain. The reasons why such a structure evolved include poor infrastructure, a distributed geographic

demand footprint and low volumes in earlier days. This was compounded by a fragmented channel structure

with multiple small distributors intermediating between manufacturers and customers.

References:

1)https://www.accenture.com/gr-en/about/company/coronavirus-supply-chain-impact

COVID 19 Pandemic

2)https://www.accenture.com/gr-en/insights/consumer-goods-services/coronavirus-consumer-goods-rapid-

response

3)Hobbs, J. E. (2020). Food supply chains during the COVID‐19 pandemic. Canadian Journal of Agricultural

Economics/Revue Canadienned'Agroeconomie, doi:http://dx.doi.org/10.1111/cjag.12237

4)Daniel E. O’Leary. (2020). Evolving information systems and technology research issues for COVID-19 and

other pandemics. Journal of Organizational Computing and Electronic Commerce, Retrieved from

https://search.proquest.com/docview/2398439995?accountid=131417


https://www.accenture.com/gr-en/about/company/coronavirus-supply-chain-impact

https://www.accenture.com/gr-en/insights/consumer-goods-services/coronavirus-consumer-goods-rapid-response

https://www.accenture.com/gr-en/insights/consumer-goods-services/coronavirus-consumer-goods-rapid-response




5)Daniel E. O’Leary. (2020). Evolving information systems and technology research issues for COVID-19 and

other pandemics. Journal of Organizational Computing and Electronic Commerce, Retrieved from


6) Gray, R. S. (2020). Agriculture, transportation, and the COVID‐19 crisis. Canadian Journal of Agricultural

Economics/Revue Canadienne d'Agroeconomie, doi:http://dx.doi.org/10.1111/cjag.12235

7)https://tigr2ess.globalfood.cam.ac.uk/news/broken-supply-chains-covid-19-lockdown-having-devastating-

effect-livelihoods-rural-india

8)WWW.reuters.com,(Report by Rajendra jadav,Naveen hukral and Nigel Hunt “Coronavirus upends global

food supply chains in latest economic shock”)

9)http://roundtableindia.co.in/index.php?option=com_content&view=article&id=9854:the-pandemic-

destroys-livelihoods-before-it-destroys-lives&catid=119&Itemid=132

10)https://www.moneycontrol.com/news/trade-2/coronavirus-pandemic-fruit-exports-likely-to-be-hit-due-to-

virus-contagion-expert-5102731.html

11)https://indianexpress.com/article/india/alphonso-feels-the-heat-farmers-struggle-to-reach-markets-

6374856/

12)https://retail.economictimes.indiatimes.com/news/food-entertainment/personal-care-pet-supplies-

liquor/fmcg-cos-stepping-up-production-under-eased-norms-but-labour-supply-chain-issues-

impede/75266972

13)https://www.accenture.com/gr-en/insights/consulting/coronavirus-supply-chain-logistics-resilience

14)http://www.mckinsey.com/

15)https://www.livemint.com/opinion/online-views/opinion-india-has-fared-better-than-others-against-

coronavirus-11587718662417.htmlhttps://www.livemint.com/opinion/online-views/opinion-india-has-fared-

better-than-others-against-coronavirus-11587718662417.html

16) KPMG Report 2020

17)https://yourstory.com/2020/04/supply-chain-logistics-industry-brunt-coronavirus-lockdown





http://www.reuters.com,(report/

http://roundtableindia.co.in/index.php?option=com_content&view=article&id=9854:the-pandemic-destroys-livelihoods-before-it-destroys-lives&catid=119&Itemid=132

http://roundtableindia.co.in/index.php?option=com_content&view=article&id=9854:the-pandemic-destroys-livelihoods-before-it-destroys-lives&catid=119&Itemid=132

https://www.moneycontrol.com/news/trade-2/coronavirus-pandemic-fruit-exports-likely-to-be-hit-due-to-virus-contagion-expert-5102731.html

https://www.moneycontrol.com/news/trade-2/coronavirus-pandemic-fruit-exports-likely-to-be-hit-due-to-virus-contagion-expert-5102731.html

https://indianexpress.com/article/india/alphonso-feels-the-heat-farmers-struggle-to-reach-markets-6374856/

https://indianexpress.com/article/india/alphonso-feels-the-heat-farmers-struggle-to-reach-markets-6374856/

https://retail.economictimes.indiatimes.com/news/food-entertainment/personal-care-pet-supplies-liquor/fmcg-cos-stepping-up-production-under-eased-norms-but-labour-supply-chain-issues-impede/75266972



https://www.accenture.com/gr-en/insights/consulting/coronavirus-supply-chain-logistics-resilience

http://www.mckinsey.com/

https://www.livemint.com/opinion/online-views/opinion-india-has-fared-better-than-others-against-coronavirus-11587718662417.html




https://yourstory.com/2020/04/supply-chain-logistics-industry-brunt-coronavirus-lockdown

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