Supply Chain Management and Restart of Economy in Post COVID-19

*Venkataramanaiah Saddikuti, Sagar Galwankar and Akilesh Sai Saddikuti Venkat*

### **Abstract**

The increase in World Trade has led to significant growth in world GDP over last 100 years particularly. Supply chains have become the major enablers of world trade and the world is connected through supply chains. Any disruptions in any part of the world has led to disruptions in supply chains and economic recessions. Crisis like Tsunamis, earthquakes, 911 terror attacks, epidemics/pandemics like COVID-19 etc. have affected the businesses worldwide. COVID-19 pandemic has precipitated economic crisis due to disruption of supply chains and suppressed demand for many products and services worldwide. International Monetary Fund (IMF) has projected global economic growth to be negative 4.9%. This economic crisis has resulted in substantial erosion of market capitalization across the globe. The impact of COVID-19 is very significant on both health of the people and economy worldwide. Almost all businesses and governments are trying its best to save people from health and economic crisis. This requires rebuilding of supply chains through appropriate configuration with reliable sources of supply, collaboration, manufacturing and distribution of goods and services. Sectors like essential items, pharmaceutical, e-commerce have started early recovery of economy. However, other sectors require suitable interventions from government, business organizations in their policies and practices and use of digital technologies for economic recovery.

**Keywords:** COVID-19, E-commerce, economic development, economic recovery, GDP, healthcare, pandemic, supply chain management, world trade

#### **1. Introduction**

Trade is an integral part of economic activity and development. In global economic system, countries exchange various products as well as intermediate goods/inputs. International trade creates network of economic activity which are generally called trade networks or supply chains. Supply chains are the major enablers of world trade and the world is connected through supply chains. The world economy is strongly connected and influenced by supply chains and its developments. According various industry reports/studies, the best companies are the ones which are having best Supply Chains [1]. Global competition is forcing

organizations to build suitable competencies to reduce cost and improve customer service on continuous basis. Corporations have realized that substantial cost savings and market benefits can be achieved by more effective management of their supply chains globally. Advances in information/communication systems and quantitative modeling are also being widely implemented, which provide the potential for access and analysis of comprehensive data/information from each element of the supply chain. One of the main objectives of supply chain is to link the markets, distribution system, manufacturing and allied processes and the procurement to serve its customers across different parts of the world at lower cost and higher service levels. Various developments in technologies, trade policies lead to strong economic growth of the world. Supply chains facilitated globalization of trade for a long time. Various disruptions challenged the globalization. COVID-19 crisis has led to the greatest disruption of supply chains worldwide. COVID-19 crisis not only disrupted the global supply chains and it has thrown lot of challenges to politicians, business and overall economy. COVID-19 pandemic has precipitated economic crisis due to disruption of supply chain, manufacturing activities, and suppressed demand. International Monetary Fund (IMF) has projected global economic growth to be negative 4.9%. This economic crisis has resulted in substantial erosion of market capitalization across the globe.

This chapter focus on how supply chains helped in building the economic development before COVID-19 crisis and how these will help to restart the economic development post COVID-19. We present a brief overview of supply chain management with some examples, impact of COVID-19 on supply chains and economy followed by economy recover framework, sectors and strategies.
