Impact of COVID-19 Pandemic on Supply Chain Management Solution Market
Institute for Supply Management (ISM) released its second wave of research on COVID-19 impacts on businesses and their supply chains recently. Its insights reflect input gathered by primarily from U.S.-based respondents between the duration of March 17 and 30. Overall, response to the coronavirus is predicted to substantially diminish capital expenditures and organizational revenue as impacts start to solidify within more organizations.
Increasing adoption of solutions in transportation management and the growing trend of Internet of Things (IoT) are some of the main factors that have boosted the supply chain management. Plus, the expansion of online shopping is creating various opportunities in the market. With these increasing opportunities, companies need proper solutions for start to end supply chain process, increasing the demand for these providers.
Many companies such as SAP SE, BluJay Solutions Ltd., Dassault Systems, IBM Corporation, and Infor Inc. are already active in the market. For the growth of the business, some companies are focusing on organic strategies like product launches and approvals, while some are performing inorganic strategic activities such as acquisitions, partnerships, and collaborations. According to the research report on Supply Chain Management Solutions Market published by The Insight Partners, these activities are creating innovative ways for the expansion of businesses and customer base of market players.
Today, the world is fighting against COVID-19 crisis, many industries are in trouble. Supply chain management is also affected by the pandemic. As per the same research done by ISM, in early March, more than 80 per cent companies believed their organization would experience impact due to COVID-19 disruptions. Unfortunately, by the end of March, this rate increased to 95% of organizations that will be or have already been impacted.
Based on the current scenario, Thomas W. Derry, Chief Executive Officer of ISM explained, "Domestic and global companies are in the midst of rapid shifts in supply chain planning, operations and inventory management to address coronavirus impacts,"
"The data suggests that even as companies adjust to supply disruptions – even anticipating normalizing supply conditions by the third quarter – they are expecting lower aggregate demand this year, which promises to be the most long-lasting impact of the virus outbreak."
As the daily evolution of the virus' impacts continues, global and domestic U.S. organizations are reporting the following primary supply chain impacts.
But as there are issues, many companies are seen collaborating to manage their business. Yesterday, Logicpath partnered with Loomis to help financial institutions with ongoing cash supply chain challenges due to COVID-19 crisis.
“We are thrilled to be partnering with Loomis to provide much needed support to financial institutions nationwide as they face unprecedented times and look for solutions to solve real-time challenges around the cash supply chain,” said Douglas Ceto, President and CEO of Logicpath. “This is the first time since 2008 that the FDIC and NCUA have updated their guidelines for pandemic planning and both Loomis and Logicpath are partnering to provide expert guidance on supply chain management best practices as it relates to cash and helping financial institutions both today and into the future.”
On the other side, study shows that demand for the products related to Healthcare & Social Assistance industry is rising and that will help to maintain the growth of supply chain management solution market.
Neha writes articles on sectors including medicine, food, materials, and science & technology. A qualified statistician, she has the ability to observe and analyze the trends in global markets and write compelling articles that help CXOs in decision making. She is a bookworm and loves to read fiction, lifestyle, science and technology. Neha comes with 6 years of experience in content writing and editing that involves blog writing, preparation of study materials and OERs.