THE COVID-19 OUTBREAK`S EFFECTS AND NEW INCLINATIONS IN TERMS OF LOGISTICS AND SUPPLY CHAIN ACTIVITIES: A CONCEPTUAL FRAMEWORK

Year 2021, Volume: 8 Issue: 2, 76 - 88, 30.06.2021

Ozden Ozkanlısoy

https://doi.org/10.17261/Pressacademia.2021.1408

Abstract

Purpose – The global pandemic called COVID-19 has also affected many economic sectors and activities, including manufacturing, supply chain and logistics. Undoubtedly, logistics and supply chain activities are the most crucial of them. There are not enough studies yet on the effect of COVID-19 on the logistics and supply chain. In this study, it is aimed to designate the effects of the pandemic on the logistics and supply chain activities, take measures against future crises and assist companies in risk management activities.
Methodology - The study is based on a literature review. The secondary data, published reports and academic studies on the field of supply chain and logistics during the COVID-19 pandemic period were examined and the findings were reported.
Findings- The COVID-19 pandemic has some negative effects on logistics and supply chain activities such as bullwhip effect, the decrease in the carrying capacity, the contraction of the international trade volume, which is an indispensable part of logistics, and the increase in logistics costs. Furthermore, pandemic has shown that many of the pre-pandemic approaches to supply chains were wrong. New approaches and strategies, which can be called new inclinations in the supply chain during the pandemic period, the understanding of localization in purchasing and the transition to new production areas, acceleration in digital transformation, increasing supply chain flexibility are the most significant ones.
Conclusion- When supply chains are faced with the risk of a natural disaster such as a pandemic, they must proactively conduct risk management efforts to mitigate this risk with minimal damage. Supply chain resistance should be increased. Moreover, companies must increase their investments in digital transformation and transform their supply chains into interconnected and autonomous ecosystems. These supply chains will be the winning supply chains of tomorrow.

Keywords

The effect of COVID-19, new inclinations in logistics and supply chains, risk management

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