Understanding the implications of pandemic outbreaks on supply chains: an exploratory study of the effects caused by the COVID-19 across four South Asian countries and steps taken by firms to address the disruptions

Abstract

PurposeThe purpose of this paper is to explore the disruptions caused to supply chains by COIVD-19 as well as steps/countermeasures taken by firms to address such disruptions.Design/methodology/approachThis study employs 46 semi-structured interviews with senior managers of the three buying firms, four distribution centers and four supplying firms based in four countries (Pakistan, Sri Lanka, China and India).FindingsResults unveil that manufacturing firms are facing limited production and delays in procuring goods and services, while distribution centres are facing inventory shortages. Furthermore, supplying firms are facing increased lead times amid the COVID-19 outbreak. In addition, each affected entity has employed specific strategies to address these disruptions. For instance, manufacturing firms are refining their production schedules based on the inventory, getting better visibility to their suppliers’ performance and developing new inbound routes to meet the production challenges. They are also assessing the tier-1 supplier’s risk and activating the relationship with secondary suppliers to address the procurement issues. Second, distributors are modifying inventory policies to meet the inventory shortage. Finally, supplying firms are developing alternative outbound logistics to meet the growing demand.Research limitations/implicationsThere are some limitations to this study. First, the results of this study cannot be generalized to a wider population. Second, this study explores the interpretations of senior managers based in four Asian countries only.Originality/valueOur study contributes to the supply chain literature by exploring the disruptions caused by COVID-19 to the supply chain operations. It also contributes to theory and practice by articulating the strategies adopted by firms to address such disruptions. Firms can use the steps highlighted in this study to mitigate the impact of COVID-19 on the supply chain disruptions.