Supply chain to greatly help revive battered economy

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The novel coronavirus originated in China, the global supply chain hub, in later December and has since rapidly spread to all or any corners of the world, affecting thousands of people and imposing significant economic implications.

Bangladesh, an evergrowing economy found in South Asia, is zero exception and possesses been highly affected by the Covid-19 outbreak. The pandemic set Bangladeshi companies in a significant crisis and stopped the supply chain move both domestically and internationally.

As we are in the age of globalisation, the world's supply chain is becoming substantially more interconnected. In addition, as emerging industry economies have steadily arrive to account for a larger proportion of global GDP, goods often have more stages to pass through before reaching the end consumer.

From national lockdowns to closed airspace and borders, the Covid-19 pandemic has led to an unprecedented disruption of the supply chain for the mechanics of all economies, irrespective of their size or stage of development.

In these circumstances and in the times to come, the supply chain has a big role to play in shaping our latest lifestyle and getting our economy rear on track.


On March 7, the primary coronavirus infection in Bangladesh was detected but since then, the number of conditions has risen at an alarming fee. The pandemic has already established a significant effect on public health insurance and overall overall economy of the country.

Bangladesh exports, which is principally dependent on the garment sector (92 %), was dented by the problem and to make matters worse, almost all of the buyers on Europe and UNITED STATES countries are either halting or cancelling their orders.

It's been reported that the garment sector was slapped with do the job order cancelations worth about $3 billion so far. This also poses an enormous danger to the garment ecosystem.

The backward linkage industries like yarn, fabric, dying and washing and forward linkage industries like banks, insurance, ports, and hotels are also impacted.

Seeing as Covid-19 continues to spread worldwide, the complete global economy has been halted, gives a clear indication to anticipate a larger fall in remittance circulation with the go back of migrant personnel in the coming times.

This may substantially impact our monetary growth in the near future as well.

On the other side, the crisis may well create new opportunities for countries like Brazil, Mexico and certain emerging market segments in South-East Asia. It's been predicted that China will end up being fewer the 'Factory of the Environment' following the pandemic.

Why factories could possibly be shifted from china are numerous.

First, it is due to the widespread shutdown of the factories in China in February and March and mass pass on of the virus all over the world and its consequences.

Second, the US-China trade battle, which already pushed some of companies to go their factories somewhere else and more businesses to follow suit after the bailout insurance policy and grant set by the government for post-Covid-19 pandemic recovery.

Third, lately lawmakers of eight developed countries shaped a fresh alliance to counter China and over time, it'll accelerate the change of firms from China to other countries.

US-origin companies are planning to realign their source chain to better countries just like Mexico and Brazil to mitigate upcoming risk even while also diversifying their origin to determine supply chain networks found in ASEAN countries.

Companies from Japan and South Korean are actually also looking to maneuver their factories from China to create alternatives in South-East Parts of asia.

Fourth, new export potential has been unlocked in the Chinese market.

Beginning with July 1, as much as 8,256 Bangladeshi products are certain to get zero tariff service in the Chinese industry. The zero-duty profit amid the pandemic is certainly expected to generate new prospects for Bangladeshi exporters and businesses.

Bangladesh, using its stable economical growth, continuous development found in electricity, communications and infrastructural sectors, advantageous geographic location, upcoming financial zones near ocean and airports and a youthful population can make the country an extremely attractive spot to relocate.

As the world source chain is in crisis and offering new opportunities for the developing countries, the supply chain has a major role to take up in overcoming the crisis.

The essential fundamentals of the supply chain are to provide smoothness of deliveries and having a variety of efficient and diversified cost-efficient sourcing along with minimal lead time. These core practices create a chain that leads to manufacturing and providing excellence.

Through practising core supply chain principles like right planning, diversified sourcing, which largely means not being limited by an individual country, reducing costs and increasing savings through the years can help companies overcome the challenges of the coronavirus fallout.

It's been predicted that the practice of the source chain could be different in the post-pandemic era.

The supply chain practices could differ from 'Just in time' to 'Just in case' with goods being produced where almost all of the consumers are. There will also be more efficient labour expense and creation of even more resilience, which itself is definitely expensive.

Keeping the predictions at heart, companies can plan as per their needs and comply with the supply chain's approaching trends to grab new opportunities.

To maintain with the alterations in the post-pandemic era and grab fresh opportunities, the government includes a significant function to play.

First, the federal government should form a committee, comprising gurus, corporate representatives, business leaders, educationalists, cultural media influencers, police representatives and health authorities to good sense the upcoming options and design strategies.

Second, Bangladesh's foreign missions can play an active function to promote the united states the respective county's organization network and, if required, they are able to also hire lobbyists.

Third, to continuously talk to the businesses who are preparing to change their factories and make investment-friendly package offers for the next 5-10 years will give cost-efficiency and savings.

Fourth, to attract traders', the government may declare taxes leniency and suitable personal bankruptcy and recovery policies.

Fifth, making investment-friendly guidelines and less administrative types of procedures allows companies to easily maneuver goods and services.

Sixth, developing other characteristics like land and economical zones aside from focusing only on efficient labour will help investors try to make long-term shift found in the entire manufacturing unit and end-to-end source chain.

Seventh, there must be more give attention to resource skill production programmes.

The world of business is changing and the Covid-19 pandemic has taken a huge change not merely in our means of living but the complete cycle of the supply chain.

Although the problem started through the trade war between two monetary giants of the world, the pandemic is adding an completely different dynamic to it.

As we are able to only hear news about crisis, damage and uncertainties, we ought to not be hopeless as every crisis creates chances.

It is time for us to comprehend the magnitude of the impact of the upcoming alterations in the global organization and the function of the source chain in dealing with the crisis.

It is period for us to accomplish supply chain excellence through which we will attract investments and achieve glorious monetary growth later on.
Source: https://www.thedailystar.net

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