• No products in the cart.

COVID-19 and Supply Chain Inventories

COVID-19 has brought many industrial and social activities to a screeching halt.

This has resulted in the demand for certain essential products, including medical and hygiene products, to skyrocket. All the while, the consumption for less essential items or those impacted by the closures, to slump.

Inventory is an asset as long as it keeps moving, and is bringing revenue. The Quick Ratio, also known as the litmus test, rings true in such times. Stopped in its tracks, inventory can lose its value, sooner for some items than later. And depending on the product’s shelf life, consumer trends and seasonality can also be impacted. Merchandise stuck in warehouses, and work-in-process stacked on factory floors, is a supply chain manager’s worst nightmare.

Among the top businesses worst hit by the COVID-19 Pandemic are: restaurants, the travel industry, and live sports. All of these, and more, are impacting perishable commodities and capital-intensive capacities.

While capacity once lost cannot be recovered in many cases, inventory shocks can be mitigated by strategies such as: redirecting, repurposing, safe-storage, delayed differentiation, and donating. These are tough decisions to make, and test an organization’s agility as well as a sense of social responsibility.

Companies that have robust decision-making processes such as Sales & Operations Planning are quick to respond, while others reel from one shock to another. Investment in training and continuous improvement during peace and prosperity pays off at the time of crises. While supply chain visibility and coordination cannot be kick-started in a panic mode, it is never too late to take a hard look at priorities and invest in resource development, as soon as possible. Teams that work together, grow together.

Contributed by:

Aftab Khan, CISCOM

0 responses on "COVID-19 and Supply Chain Inventories"

    Leave a Message

    Your email address will not be published. Required fields are marked *

    Since its inception in 1981, BRASI has provided education in the field of economics and business management, for the benefit of businesses and individuals.

    To offer high quality training for individuals and organizations in supply chain and operations management, aiming at sustainable development.

    Subscribe to our Newsletter

    Enter your Email address and Name to subscribe now.


    • PO Box 3935, Washington, DC 20027, USA.
    •   Write to us
    • Toll-free USA and Canada 1-800-636-8133
    •   Join us at our FREE Webinars
    Copyright © 2020 www.brasi.org.  All Rights Reserved.
    Copy link