The recent COVID-19 outbreak has created a huge dent in the global economy. It has shattered businesses of all kinds. But the COVID-19 impact on supply chain business has been the most devastating. This has happened because most countries are in lockdown mode and transportation is severely restricted. This article talks about the COVID-19 impact on supply chain business and how ERP for supply chain management can help in times of crisis.

COVID-19 impact on Supply Chain Business

  • Pharma supply chains have been crippled and have created drug shortages.
  • Acute shortage of reagents and lab supplies has caused a serious cut in the production of COVID-19 testing kits.
  • Many truck drivers are falling sick due to which consumer packaged goods such as beverages and food are not able to reach shopping complexes.
  • People are panic-buying in bulk which is creating a shortage of supply of essential items.
  • Social distancing, the only way to save oneself from being infected, has led to excessive cut off in the workforce and has altered the dynamics of demand and supply.
  • Many manufacturing units in China, which is also considered the manufacturing hub of the world, have either shut down or are maintaining a skeletal workforce to continue their operations. This has caused a severe decline in the availability of essential items worldwide.

Also Read: How to maintain a Healthy Supply Chain during the COVID-19 Crisis?

How ERP for Supply Chain Management can help you?

The COVID-19 impact on supply chain business has been shocking. It has left supply chain experts dumbfounded. Most countries are facing problems to gather products essential for survival. The points below explain how ERP for supply chain management can help companies in times of crisis.

  • It stores a list of essential items required for production and prioritizes the buying of critical components.
  • It identifies suppliers from high-risk and low-risk areas using Bills of Material (BOM).
  • Stores critical information about tier 1 and tier 2 vendors and decides whom to bank upon in times of crisis.
  • Forecasts the ability of the vendor to supply materials, in case the vendor does not share any information.
  • Identifies the current stockpile and the left-over inventory in the value chain.
  • Keeps track of spare-parts inventory that can be used for production.
  • Has rigorous algorithms to check the quality of materials produced.
  • Suggests ways to remove bottlenecks and propose ways to accelerate the arrival of materials.
  • Uses advanced statistical forecasting tools to estimate the demand of the final consumer.

The proverb ‘Extraordinary times call for extraordinary measures’ define the current Coronavirus crisis aptly. Companies need to take hard decisions and act on them vigorously. The COVID-19 impact on supply chain business seems to be deteriorating with every passing day. ERP for Supply chain management appears to be the only solution to prevent further mess. At Sage, we are home to world-class ERP for supply chain management that efficiently handles all your supply chain problems and helps you run your company like a pro. To know more about it, SMS SAGE to 56767. You can also write to us at

Disclaimer: All the information, views and opinions expressed in this blog are those of the authors and their respective web sources and in no way reflect the principles, views or objectives of Sage Software Solutions (P) Ltd. 

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