The government has instructed to ensure that critical supplies can be normalized during the lockdown time. The States should invoke the requirements of the Essential Commodities Act and set the stock limit, regulate prices and increase essential commodity output.

Orders have been placed following production loss reports, which resulted in price increases for essential goods, due to several factors including hoarding, corruption, profit-making and speculation trading. The States were asked to take urgent measures to ensure that these goods are available at fair prices to the general public.

Covid-19 interrupted domestic and foreign supply chains. While all the companies are trying to return to the track and prepare for the rebounding after the lockdown, this is another perfect opportunity to rebuild supply chains with a blank sheet. 

In addition to access passes for the workplace staff, vehicles, and passengers, one essential element includes the center/state / local police commissioner’s certificate for the business to resume production.

What has been added to the list of essential items?

·         Tissue papers

·         Diapers

·         Sanitary napkins and feminine wipes

·         Soaps and detergents

·         Toothpaste/ other oral care products

·         Janitorial & Wholesale cleaning supplies.

·         Body wash and shampoos

·         Surface cleaners and disinfectants

·         Battery cells, chargers

The items present on the list

·         Rice

·         Food Grains

·         Fruits and Vegetables

·         Sugar and salt,

·         Tea and coffee supplies

·         wheat flour, other cereals and pulses

·         Bakery and dairy products)

·         spices

·         Eggs, meat and fish

·         Packaged food and beverages

·         baby food

·         Animal feed/pet food

·         Health supplements

·         oil

·         food for exclusive dietary use

Organizations usually include many levels of inventory in the chain between manufacturing and end customers for several days. In the past years, poor infrastructure, distributed geographical demand, and low volumes were among the reasons behind the development of such structures.

It was complemented by a fragmentary channel structure that was intermediated between producers and consumers by various small distributors. 

The lockdown due to Covid-19 has either eliminated product supply chains or significantly decreased them, providing unexpected incentives for companies to reinvent their supply chains in specific measures. That is what companies should do to make the best of the opportunity:

Allocation and re-consumption of frameworks direct to consumers:

Organizations can take this opportunity to strengthen their network, move away from the weak and less powerful distributors. 

They can consolidate their distribution network. A more adjustment is required, in place of holding stocks with retailers which can be transferred into a flux model, with a higher percentage of product stocks in the distribution chain â either in the warehouses outside or inside a plant or in their distribution centres.

The lockdown led to home delivery by consumers. This shift is reflected by extended times of wait for the Big Basket or Amazon Pantry delivery slot. Consumers are also used to pay delivery charges through the lockdown. Even after a lockdown, due to social distancing rules, consumers could hesitate to return to regular shopping and will keep avoiding crowded areas.

Stimulate Mechanization:

Given the low labour costs in many countries, it is usually difficult to justify the mechanization of the supply chain. The social differences in factories and warehouses, therefore, would allow it to reduce the number of people in the supply chain. 

It would include the redesign of the end-of-line packing, mechanical gestures, expanded usage of robots on the factory floor, the use of AGVs etc.

Prioritize reduction of threats rather than expense optimization:

Most countries are a high-volume, low-risk market. In all supply chain design exercises, cost optimization has become a key objective. The latest instability, however, allows businesses to fund multiple nodes of their supply chains. 

Organizations, be it manufacturers, processing facilities or delivery centres, must deter a single point of the possible loss. Processing of local capacity and backward integration will be required in industries such as pharmaceuticals and technical textiles (for example, for personal protective equipment) and medical equipment dependent on imports for critical input.

Adopt preparation and exercises for Challenging situations:

Many companies have only a clear view of the potential and only take into consideration their execution efforts in the next few months. Covid-19 has stressed the importance of periodic screening of alternate scenarios and the simulation of dramatic response strategies. 

It would prevent the firefighting mode from being used. Besides, during this lock-up, organizations have been forced to plan daily because supply chains were profoundly disrupted.

Revamp of the organization:

For many last few weeks, but in lower output levels, organizations have worked with their staff from home and managed most activities via telephone and video calls. 

There is no reason why organizations need to revert after this lockdown into their traditional management models for their supply chains, which stress the fact that managers are located close to different action points.

Every member of the design team does not have to be at the headquarters, and logistics managers are not required to perform their tasks in specific regions or areas. The removal of territorial restrictions would make it easier to redistribute the workload and help to build a modern organizational paradigm as a whole.

Conclusion

The supply chain will digitize all information and cash fluxes. Except during covetous interruptions, digitalization enables the chain to operate smoothly. The shortage of cash accessible for truck drivers prompted a series of recent transport stoppages. Payment bags will, therefore, gain the truckers’ currency. 

Companies must also encourage channel partners and providers to take advantage of digital payments by cash or cheque. Also, the growing need for quality control in the supply chain of goods and properties would enable organizations, for example, blockchain, to assess and implement innovations.