Coronavirus Impact on Global Supply Chains

Delivery

This report comes in PPT.

Key Findings

COVID-19 outbreak had an extensive effect on supply chains

55% of the companies in the Euromonitor International Voice of the Industry COVID-19 survey indicated that the COVID-19 outbreak had an extensive impact on their operations. Geographically, the virus outbreak largely affected business in North America, Europe and Asia.

Industries reliant on efficient transportation face most disruptions

Industries relying on efficient transportation networks, such as food products or pharma, have the most vulnerable supply chains. Unexpected transportation bottlenecks can have a domino effect on global operations.

COVID-19 to accelerate supply chain diversification

According to the results of the Euromonitor International Voice of the Industry COVID-19 survey, over the next six months almost 25% of companies expect a shift towards greater supply chain localisation and diversification. The supply chain diversification efforts are expected to accelerate over the next 2-3 years.

China could lose its central position in the global supply chain

Accelerating diversification and regionalisation of supply chains could erode China’s dominant position in the global supply chain. Emergence of new technologies that help to reduce operating costs and government support for industrialisation are expected to move part of the production from China to Europe and North America.

Regionalisation of supply chains could hurt development of emerging countries

Increasing regionalisation of supply chains and manufacturing reshoring back to developed economies could have an adverse effect on emerging countries. Lack of foreign capital and investments could impede industrialisation efforts and slow down socioeconomic development of emerging markets.

Digital tools expected to help prepare for future disruptions

Voice of the Industry COVID-19 survey plan to implement digital strategies to better cope with similar disruptions in the future. Digital tools are expected to help companies to better track their supply chain and adjust their production in times of emergency.  57% of respondents in the Euromonitor International

E-commerce to gain importance in the future sales channel mix

During the COVID-19 outbreak, many B2B customers switched to online buying and are likely to continue buying online after the lockdown. Companies are addressing customer behaviour changes, with 47% of respondents in the Euromonitor International Voice of the Industry COVID-19 survey planning to accelerate e-commerce investments.