Dear Members of the IFPSM, dear Friends!
The outbreak and spread of the COVID-19 coronavirus has surprised the whole world. Since the virus was identified at the end of 2019 in Wuhan, the capital of the central Chinese province of Hubei, the data on March 27, 2020 have been reported that more than 590,000 people have been infected in more than 180 countries (in all of continents of the globe); more than 24,600 deaths and more than 112,200 cured. We are daily facing extremely fast spread of the virus. Europe is currently the most affected continent. Outbreak of COVID-19 is a milestone that will change the mindset and force many companies and industries to rethink and transform supply chain models. Given that China has become the world's largest producer of products and components, and a major consumer of global raw materials and industrial products, the latest event has caused a lot of tension in global supply chains in many industries. While the most optimistic forecasts predicted that the "normal" situation would return by April, we see lately that we are far from normal and COVID 19 is in many countries out of control. I believe that COVID-19 will have a long-term impact on global supply chains and further development directions. In a recent articles by consulting company Deloitte, the implications of COVID-19 into supply chains are presented and options for short-term solutions that can help mitigate the short-term negative effects are analyzed, while also reflecting on how companies should strengthen their supply chain management and protect themselves against possible future supply chain shocks. The decisions, all of us, working in Procurement, Supply Chains or in Associations are making nowadays or will make them in the coming weeks and months will have an impact on our business in the coming years. We at IFPSM decided to publish this article, in order to encourage you to think about, how you can eliminate or at least reduce the risks that affects your supply chains currently and in the future.
President of IFPSM
Deloitte. (March, 2020)
"The impact of COVID-19 on global supply chains and the transport sector – an initial assessment with some conceptual tools and indicative policy recommendations" Professor Lauri Ojala (March, 2020) Operations & Supply Chain Management, University of Turku, Finland