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Impact COVID-19 on FMCG Supply Chain


The supply chains today are far more complex as compared to what they were a decade ago. The COVID-19 pandemic has not only hampered the production facilities, but has also disrupted the supply chains globally. In order to formulate corporate strategies, organizations are required to comprehend their direct supply chains and also inherit risks which they may get exposed to at their supplier and customer level. This phenomenon is regarded as the nature of every economy.

The implications of coronavirus outspread on the supply chains is already quite evident. The pandemic has compelled consumers to radically change their purchase behaviours which has led to hoarding and stock piling of daily essentials and heath & wellness products. This behaviour has subsequently affected the grocery aisles holding non perishable goods, including FMCG products.

Retailers in the U.S. have acknowledged the COVID-19 implications on supply chain, apart from sourcing and manufacturing in china. Approximately, 20% of the supply chain retailers in the U.S. are exposed to China. Albeit things coming back online in China, they still have shortage of labour which is affecting the cargo movement and hence cross border trade. Moreover, the U.S. trade war, increasing labour costs, and growth in number of manufactures producing for their own market in China, were some factors previously motivating U.S. retailers to move away from the market. Similar to a trade war scenario, the pandemic could lead to acceleration of more diversified supply chains by the U.S., rather than solely/largely relying on China.

Most of the U.S. companies, are facing doubled lead times and the shortage is caused due to lack of air and water freight options in order to move the goods to United States, despite of filled orders. This is an added supply chain disruption faced in the U.S.

The lockdown scenario in India has interrupted the operations of FMCG distributors. Since the lockdown, there has been an enormous shortage of labour and manpower. Regardless of the goods being manufactured and stocked in warehouses, the distributors are however unable to further supply them to the final retailers. There are several reasons causing this interruption, including police obstruction and manpower shortage. Consequently, the grocery and supermarket retailers are staring to face shortage of essential FMCG products. Nevertheless, the government has now stepped in with assistance of technology to promote linkage between suppliers and delivery partners.

European countries are facing a harsh time with maximum affected and death cases due to the COVID -19 pandemic. Countries such as Italy, Spain, France and Germany facing lockdown for weeks have certainly affected the supply chain of multiple businesses. The grocery store shelves have been wiped-off of their daily essentials, health & wellness and FMCG products. This presents potentially costly challenges for several supply chain leaders. Major swings in the inventory due to panic buying further reflect the upward stream of the supply chain. Manufacturers are left overwhelmed with unanticipated glitches in demand, distributors are in a complex state while determining the distribution during shortage and subsequently retailers lose potential sales.
Post Covid-19 World of FMCG Supply Chain

The COVID-19 pandemic is regarded as a black swan event, owing to which the expenditures on marketing activities have become short-term and unpredictable. The lockdown across majority countries is anticipated to increase digital viewing since people have started to spend much of their indoor time on digital gadgets. In this occasion, advertisers consider it imperative to stay in close connection with consumers. Hence, with the absence of social contact, building trust has become far more essential as compared to short-term sales.

E-commerce sales especially for daily essentials will serve as a boon for online business. In such scenarios, consumers tend to only satisfy their needs rather than desires, owing to the uncertainty of the situation. Categories which involve social contact such as restaurants, tourism, retail, cinema and others, will bear the extreme direct consequences of the pandemic. In terms of FMCG, the supply chain merchants are the ones to look out for. This is because most of the financial institutions will hold back on distribution of retail loans. Which will most likely cause undesirable impact on sales of durables.

Fast moving consumer goods giants including Nestle, P&G, Dabur and Jyothy Laboratories, HUL, Godrej have either reduced or suspended production altogether after the government’s lockdown orders. Certain brands will however continue production of essential food items, hand sanitizers and hand wash. Currently, there is a huge spike in demand for essentials, however immense supply-chain issues. In such a scenario, it wouldn’t be hard to anticipate disruptions in the supply chain as an impact of lowered production.

In addition, there is an issue of lack of even distribution among retailers alongside consumer’s panic buying behaviour in the current situation. This is also likely to further deplete the finished goods pipeline. Although, the bigger problem for the FMCG giants is caused by lack of clarity in COVID-19 guidelines presented by the government. On one hand, the production of essential good is permitted, on the other hand, complete lockdown has caused shortage of manpower, hence leading to reduced production. Companies such as Amul and HUL are making every effort to ensure that their products are manufactured and bought to the market in an uninterrupted manner.

In terms of certain small-scale and local brands, the priority however seems to be a little different. There is a wide array of fake and duplicate products available in the market for short-term profitability. Several e-commerce platforms such as Amazon and Flipkart have stopped third party merchants to market products which claim to cure coronavirus.
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Now is the right time for every business because technology is at its peak. Now, within a few seconds, clients can easily engage with different business owners and raise their concerns. Secondly, a profitable deal can be made within a few seconds. This way, business owners can rest assure about making improvements in their products and services rapidly. Secondly, with social media being omnipresent, businesses can easily come across a larger audience in a short time. Hadn’t it been for the massive evolution of technology, many businesses would have got wiped out by now. 4. Improved Lifestyle If you want to rest assure about the veracity of this claim, you need to look around and see how your way of living has evolved gradually. The majority of items in most households are selected because they work as catalysts to speed up the process of making life easier. Be it the security system, the automated door locks, or the lighting control, everything is better than ever. No wonder, technology has uplifted the lifestyles of millions across the globe and continues to make massive changes every second. If you haven’t settled for a tech-oriented lifestyle, you will probably be left behind the world. 5. Better Love Life Technology has not only brought changes in social life but has also spiced up the love life of millions globally. This is why modern dating is a much better version. Thanks to the internet, millions of couples meet and begin a new journey of life. Luckily, long-distance relationships are also meeting with success because technology is very instrumental in them. If you think of dating someone from a different part of the globe, technology will breathe life into this thought. Secondly, with interesting emojis being available to express your thoughts, you can express your feelings through different visuals. 6. More Enjoyable Travelling It is important to acknowledge that traveling is a concrete part of everyone’s lives. 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The evolution of technology has given a major push to medical research in such a way that the quality of life of an average human being can be improved easily. Secondly, with access to several home remedies on the web, it is easy for everyone to seek a cure. This way, it is easier for everyone to stay safe and healthy while at home. Especially after the coronavirus invaded the world, it was because of the internet that people got to know about the best ways to stay healthy. We have all the varieties of household equipment. And undoubtedly motorcycles have become a need for our lives in Pakistan. We know it, visit our site and buy motorcycles on installments.
Cooling Your Home with a Whole House Ventilation Fan
Whole house cooling is not just about installing an efficient air conditioner. It can be provided by a high-quality whole house fan, which might make sense if you live in an area where the climate is moderate. A whole house ventilation fan can fulfill most of your cooling requirements and deliver sufficient comfort, even in summers. This way, you can limit the use of your air conditioning and use it only when absolutely necessary, like during extremely hot times of the day, so you can add to your energy savings. Reading that a fan has the potential to cool an entire home might sound unusual, but it is actually possible as long as the installation is properly planned. With the right service provider, you will find that the whole house ventilation fan is actually effective at cooling critical areas, such as your living space and your attic. That’s because it is usually installed in the attic, between the living space and the ceiling. How does it work? When it’s cool outside, switch the whole house fan on and open the windows. The cooler air from outside will flow through your home to cool your living space, while simultaneously pulling air into your attic to cool that space. Think of it as if the fan is an exhaust system, but more capable of cooling your whole home rather than merely pulling heat out from a particular space. Cooling your home with a whole house ventilation fan is more affordable compared to relying on your air conditioning system. That makes it more practical and economical, and more affordable than air conditioning. When your home is equipped with this, hot air is pulled into the attic, then positive pressure pushes air out through the gables or vents. At the same time, negative pressure is generated in the living area to bring the cooler air through the windows. The whole house ventilation fan will bring more energy savings to your home. It is environmentally friendly, energy efficient, and runs quieter, too, especially with newer models available. For best results, keep the windows open to allow the fan to work efficiently. The fan is also best used during times when the air outside is cool, particularly in the morning and evening. About the Author: Whole-House Fan is an authorized distributor of QuietCool whole house fans, attic fans, and garage exhaust fans, helping people with their cooling needs since 2001. They offer amazing whisper-quiet, safety-tested fans at an affordable price. These high volume fans move 1250 to 6400 cubic feet of air per minute, effectively pushing out the hot air, pollutants, and germs and allowing fresh, cool air from outside to come in. The energy efficiency of these fans is off the charts, providing you with ROI in energy savings within two years of purchase! Visit the website to buy one now or call 1.888.229.5757 for free expert advice.