Technology will help global supply chains "survive" during the Covid-19 era

Technology will help global supply chains "survive" during the Covid-19 era

By advancing to the smart city model and digital transformation, we can overcome many problems in the future such as pollution, traffic congestion and any disease, such as Covid-19, MERS-CoV or SARS …


In China, the country most heavily affected by Covid-19, the government has recommended hundreds of millions of home workers to prevent the virus from spreading. Consequently, many factories and production facilities had to close down after the Lunar New Year.


It is still too early to predict or fully forecast the impact but looking at what is happening with the manufacturing industry, we can see that the severe disruption on the global supply chain will affect all markets. The cost pressure on the supply chain forces businesses to focus more on lean and/or outsource production strategies. If there is any disruption at the top of the supply chain, production will be delayed due to a lack of raw materials or components.


In the context of many businesses relying on raw materials from China, Covid-19 will affect the global supply chain, causing production to stagnate or temporarily stop assembly and production lines around the world. This has been happening. Nissan has to reduce output due to an emergency shutdown in China. Similarly in Korea, Hyundai had to suspend all activities due to the lack of components and spare parts from China. This unrest is likely to continue because "when China sneezes, the world will catch a cold."


The supply chain in Vietnam is no exception and is being influenced by COVID-19 because China is Vietnam's largest import market, many products imported from this country play an essential role. with home-made production. Other major import markets of Vietnam such as Korea, Japan, Thailand, and the US are also affected by the Covid-19 epidemic.


Obviously, the Covid-19 epidemic is causing many individuals and organizations to worry. But when viewed positively, this is also the time for new opportunities, so we can identify weaknesses in the current supply chain, to overcome the global crisis and improve global supply chains. As a result, it is a significant disruption to the current supply chain that can motivate us to change the way we manufacture, ship and pay for our products and services.


By advancing to the smart city model and digital transformation, we can overcome any future problems such as pollution, traffic congestion and any epidemics, such as Covid-19, MERS. -CoV or SARS. Breakthrough technologies can help us change the whole mechanism, move to smarter and better-connected supply chain ecosystems, which can help build flexible work environments (for example, such as working remotely), eliminating many of the tasks people currently undertake, and strengthening data sharing protocols whenever an epidemic or disaster strikes.


There are currently nine groundbreaking technologies dubbed as tools that will bring about strong reforms in the future and have the potential for application in supply chains. These technologies include 3D printing, artificial intelligence, self-driving cars, big data analysis, blockchain, drones, Internet of Things (IoT), learning robots, and virtual reality (VR), and/or augmented reality (AR).


For example, a major US retail chain, Target recently announced that it will start putting learning robot solutions into the process by the summer of 2020, to help sort and add goods at hundreds of stores. 


Meanwhile, many other manufacturers are exploring how to apply the IoT of the Internet to get real-time data on the number of existing materials, which can anticipate risks and make purchasing decisions more correct.


To have the desired future, not only government agencies, but individuals and organizations must work together. The sooner we respond to a crisis, the sooner we can cope with future disruptions or disease outbreaks.




At Orgit, we are problem solvers, next-generation thinkers, and efficiency aficionados. Operating at both local and global scales, Orgit offers comprehensive solutions packages developed by in-house industry experts, tested against real-world scenarios, and designed for the changing supply chain. Learn more about Orgit’s solutions or get in touch with our experts today.