Impact of supply chain disruptions during the COVID-19 pandemic to micro, small and medium enterprises in Davao Region, Philippines

Purpose This paper aims to investigate the impact of supply chain disruptions on the operations and sales performance of micro, small and medium enterprises (MSMEs) and the adoption of “green” technology during the COVID-19 pandemic in Davao Region, Philippines. Design/methodology/approach A business impact survey was conducted among 113 MSMEs in Davao Region through the Regional Inclusive Innovation Center participated by the industry, government and the academe from October–December 2020. The impact of supply chain disruptions on the status of business operations was determined using ordered logit regression, while the impact on sales performance during the lockdown and new normal periods were modeled using logit regression. The technology upgrading plans of the MSMEs, including the adoption of “green” technology, were also determined. Findings This study found that the extent of disruption in processing the goods and services resulted in a negative impact on business operations, and the disruption of the availability of raw materials negatively affected the sales performance during the lockdown period. Moreover, around 20%–33% of MSMEs experiencing heavy supply chain disruptions had a plan to upgrade their business processes by adopting “green” technology. Research limitations/implications MSMEs need to establish strategic collaboration among the different stakeholders through public, private, non-government institutions and academe collaboration to enhance the capabilities of MSMEs in handling supply chain disruptions and pursuing technology upgrading. Originality/value This paper is among the early studies of the impact of COVID-19 to supply chains in the Philippines focusing on the MSMEs.

Resilience Decoded: The Role of Firms, Global Value Chains, and the State in COVID-19 Medical Supplies

This article examines the impacts of the COVID-19 pandemic on resilience. Resilience is not a one-dimensional concept but has different meanings at the levels of the firm (operational efficiency), the global value chain (appropriate governance), and the nation-state (national security). It illustrates resilience dynamics through lessons from case studies of four medical supply products—rubber gloves, face masks, ventilators, and vaccines. It explores how each adjusted to disruptions caused by the COVID-19 pandemic and presents key strategies that can guide managers and policymakers in building resilience for future supply chain disruptions.

Insights From Supply Chain Disruptions in the COVID-19 Era

The COVID-19 pandemic has created a devastating impact on supply chains. Especially, transportation disruptions, the slowdown in manufacturing, supply-demand imbalances, operational inefficiency in last-mile, and deficiencies in dealing with the crisis can be seen as main headings. This chapter aims to reveal the problems and learn lessons in these areas where significant risks are faced. During the COVID era, the need for resilient supply chains that are not affected by instantaneous changes has come to the fore. Accordingly, the second aim of the chapter is to offer solutions toward the short, medium, and long terms of the first-mile, production, and last-mile processes as enhancing the responsiveness of supply chains by the elements of supply chain resilience. This study is prepared as a review article in an exploratory approach through the supply chain literature and current practical examples. As a result of the study, digital-intensive business models, collaborative network design, and sustainability are highlighted as the main concepts to reach more resilient networks.

A comparative study of small-scale fishery supply chains’ vulnerability and resilience to COVID-19

The COVID-19 pandemic and response has significantly disrupted fishery supply chains, creating shortages of essential foods and constraining livelihoods globally. Small-scale fisheries (SSFs) are responding to the pandemic in a variety of ways. Together, disruptions from and responses to COVID-19 illuminate existing vulnerabilities in the fish distribution paradigm and possible means of reducing system and actor sensitivity and exposure and increasing adaptive capacity. Integrating concepts from literature on supply chain disruptions, social-ecological systems, human wellbeing, vulnerability, and SSFs, we synthesize preliminary lessons from six case studies from Indonesia, the Philippines, Peru, Canada, and the United States. The SSF supply chains examined employ different distribution strategies and operate in different geographic, political, social, economic, and cultural contexts. Specifically, we ask (a) how resilient have different SSF supply chains been to COVID-19 impacts; (b) what do these initial outcomes indicate about the role of distribution strategies in determining the vulnerability of SSF supply chains to macroeconomic shocks; and (c) what key factors have shaped this vulnerability? Based on our findings, systemic changes that may reduce SSF vulnerability to future macroeconomic shocks include: diversification of distribution strategies, livelihoods, and products; development of local and domestic markets and distribution channels; reduced reliance on international markets; establishment of effective communication channels; and preparation for providing aid to directly assist supply chains and support consumer purchasing power.

Energy Resilience Impact of Supply Chain Network Disruption to Military Microgrids

The ability to provide uninterrupted power to military installations is paramount in executing a country’s national defense strategy. Microgrid architectures increase installation energy resilience through redundant local generation sources and the capability for grid independence. However, deliberate attacks from near-peer competitors can disrupt the associated supply chain network, thereby affecting mission critical loads. Utilizing an integrated discrete-time Markov chain and dynamic Bayesian network approach, we investigate disruption propagation throughout a supply chain network and quantify its mission impact on an islanded microgrid. We propose a novel methodology and an associated metric we term “energy resilience impact” to identify and address supply chain disruption risks to energy security. The proposed methodology addresses a gap in the literature and practice where it is assumed supply chains will not be disrupted during incidents involving microgrids. A case study of a fictional military installation is presented to demonstrate how installation energy managers can adopt this methodology for the design and improvement of military microgrids. The fictional case study shows how supply chain disruptions can impact the ability of a microgrid to successfully supply electricity to critical loads throughout an islanding event.

Supplier-dedicated resources and flexibility’s roles in a manufacturer’s superior performance

In today’s ever-changing environment, a manufacturing firm depends increasingly on suppliers to sustain its competitiveness. The recent COVID-19 pandemic has demonstrated that supply chain disruptions impair a firm’s ability to deliver customer value. The adverse effect is more significant when the supply chains in question are inflexible rather than flexible. This research argues that supplier-dedicated resources (SRs) and supplier flexibility (SF) determine a manufacturing firm’s competitive advantage (CA) and provide a comprehensive view of these supply chain-based factors in the same model. Based on data from 201 respondents in US manufacturing firms that vary in industry type and company size, the results confirm that SRs are critically extended resources for a manufacturing firm. The results also demonstrate that SF mediates the effect of SRs on a manufacturer’s sustainable CA fully. Further, the research develops and verifies SRs as a second-order construct reflecting the synergistic benefit of three subconstructs: dedicated technology, engineers and managers, and company climate.

Facing Supply Chain Disruptions: Strategies to Ensure Relational Continuity

The COVID-19 pandemic is not comparable for extension and implications to any other crisis faced by organizations over the last decades. Understandably, in its first and most acute phases, managers have focused their attention on how companies could ensure business continuity at the organizational level, by guaranteeing safe operating conditions and reshaping working procedures. Yet, for companies operating in business markets, adjusting internal processes to face a supply chain disruption is not enough to ensure business continuity, as these companies also need to sustain the network of external relationships in the whole supply chain in which they operate. To avoid jeopardizing their long-term survival, maintain their scope of action, and keep up with the challenges of the new normal, business companies need to engage in effective strategies that focus on a different component of business continuity, which we call relational continuity. After a brief review of the literature, the chapter first introduces the relational continuity concept in supply chain relationships. Drawing on a series of qualitative in-depth interviews with managers from the industrial machinery industry, whose sampled firms are actually connected through a direct supplier-client relationship, the chapter identifies three strategies that industrial companies should implement to ensure relational continuity with their key partners (suppliers and especially clients): supply chain intelligence, relational slack and key partners’ integration. Their full-fledged implementation proved to smooth and strengthen relationships among all players in the supply-chain and make business companies more responsive and capable to address the relational challenges of the “new normal” scenario.

The Role of the WTO in the Global Response to the COVID-19 Pandemic

The WTO and international trade have proven more important than ever during the COVID-19 pandemic. Indeed, without the delivery of food, medicines, masks and vaccines through commerce, the pandemic could not be contained. The WTO basic principles - transparency, non-discrimination, the prohibition against border restrictions, disciplines on subsidies to industrial and agriculture products, to name a few, and in particular the WTO monitoring system have helped countries collaborating and coordinating their actions to contain the pandemic and mitigate trade and global supply chain disruptions on essential goods. In addition, during this crisis, the WTO Secretariat and its Director-General assumed enhanced responsibilities to assist Members with their extraordinary needs. The WTO became the global forum for Members’ coordination of border and internal trade-related actions, for the debate on intellectual property and the request for waiving patent protections on vaccines, while playing an active role in stimulating the expansion of vaccine production capacity in developing countries. This article contends that the response of the WTO has augmented and legitimatized its role as a global governance forum.