The Impact of the Covid-19 Crisis on Chinese Supply Chain Management: studying the Impact of Covid-19 on the Chinese Supply Chain Management Industry through Archival Research

Abstract

Supply Chain Management (SCM) refers to the coordinated management of all the activities involved in moving goods and services from their production stage to the final delivery to customers. SCM is crucial in optimizing supply chains and achieving competitive advantages by enhancing customer value. Effective SCM fosters strong supplier relationships, ensures timely delivery, minimizes risks, promotes sustainability, and facilitates the smooth flow of products throughout the supply chain. However, the Covid-19 outbreak has disrupted global supply chains and highlighted the susceptibility of countries that rely significantly on a single supply source. The crisis has had a paramount impact on China, a key player in the global economy, resulting in changes in SCM procedures. This research aims to visually examine the influence of the Covid-19 issue on Chinese SCM from 2020 to 2022. This study aimed to explore the Chinese SCM industry and understand how its organization and strategies have been affected by the covid-19 crisis. Furthermore, the research investigated how businesses use tactics and solutions to these difficulties. The Implementation Method used is the qualitative analysis through Archival Research based on Secondary Data from Relevant Publications. The analysis is based on a comprehensive review of academic and non-academic sources such as research papers, case studies, reports, and journal articles. The results indicated that the Covid-19 pandemic has significantly impacted the Chinese SCM industry, particularly regarding disruptions in the supply chain network, logistics, warehousing, transportation, and demand patterns. Many businesses have had to temporarily shut down or reduce their operations, which has disrupted the flow of goods along the supply chain, leading to delays in deliveries, inventory shortages, and increased lead times for suppliers. The study also found several emerging best practices for overcoming the impact of Covid-19 on the Chinese SCM industry. These practices include broadening the scope of business, changing service modes, collaboration and communication, digitalization, technologies, automation, government support, resilience, and risk management. In particular, the Metro-based underground logistics system is one of the new solutions that solved the labor shortage and transport disruption problems in responding to urban emergencies. Moreover, the free highway policy is a good short-term solution in China to promote economic recovery during this pandemic. In addition, the study suggests conducting longitudinal research to examine the long-term effects of Covid-19 on Chinese SCM, aiming to expand on the current understanding and explore new areas of investigation. By studying the evolving consequences and potential implications over time, valuable insights can be gained for future SCM practices in China.