- KredX Editorial Team
- 15 Apr 20
- business,COVID19,Supply chain management

On December 31, 2019, the World Health Organisation (WHO) came to know of a new strain of the virus - COVID-19 in China. What followed was a pandemic outbreak, disrupting the global supply chain and impacting the global macroeconomic outlook. Since then, the world has undergone a dramatic transformation, making quarantine and social distancing a societal norm while slowing down the velocity of global activity.
Since early 2020, a wave of extensive quarantine and lockdown compelled companies to shut down factories, leading to massive supply chain disruption. Today, global supply chains are experiencing a root-to-branch shutdown unlike any seen in modern days, as efforts to contain the outbreak hit every sector - from imminent food shortage in the U.S to the copper mines in Peru, and the ball-bearing makers in Germany’s industrial heartland.
However, this isn’t the first time we encountered a natural catastrophe, but none has upended the global supply chain like the coronavirus outbreak. A survey conducted by PwC - COVID-19 CFO Pulse Survey provides insight on the potential for the pandemic to turn to a global economic fallout is the top concern for finance leaders. Out of the participants, 80% indicated that a potential global recession was among the top-three concerns with respect to COVID-19, 54% of respondents feel the pandemic will significantly impact business operations, whereas 30 % expects a considerable impact on the supply chain. However, 90% of finance leaders say their business would return to normal in less than 3 months if COVID-19 were to end immediately.
With the advent of globalisation, the hyper-connected markets lead to a complex supply chain across nations and industries which are currently being savaged by the lingering impacts of the virus. And as the markets are demonstrating, the economic consequences are just beginning to kick in.
The pandemic outbreak has further revealed that supply chain disruptions could wreak far greater havoc on the global economy and national security than most people realise.