Global Supply Chains Vulnerability and Distortions Amidst Covid19 Pandemic: Antecedents for Building Resilience in Downstream Logistics

Abstract

COVID-19 outbreak surprised the world completely since it is affecting lives, businesses and supply chain operations tremendously. Businesses have been closed, production operations disrupted and physical distribution halted. Given that, the study aimed to determine the distortions caused by the COVID-19 pandemic in upstream and downstream supply chains as well as identify approaches for building resilience in the supply chain. The study was guided by the Principal-Agent Theory and Resource Dependence Theory. A qualitative approach based on literature survey methodologies guided the study whereby systematic literature synthesis was conducted to collect secondary data from published scholarly articles and grey literature. A total of 58 published articles were reviewed after a rigorous screening in line with the pre-established objectives and theoretical underpinnings. Basic coding was done based on the key themes and thereafter constant comparison analysis was performed for data analysis. Findings indicate that the outbreak has caused disruptions throughout the global supply chains and paralysed several businesses, particularly in the manufacturing, transportation, and hospitality sectors. The majority of global manufacturing companies are currently facing serious shortages of supplies from their supply networks. Transportation and third party logistics have been largely distorted since cross-border and domestic freights are hardly working or operational. Therefore, to build resilience companies should consider resorting to local sourcing and/or multiple sourcing, increase supply chain agility and build inventory buffers. Likewise, there is a need for developing partnerships or strategic alliances to share resources towards building resilience jointly but also diversification of business operations where possible to produce the required supplies for fighting against COVID-19.