Supply Chain Bottlenecks During COVID-19: The Black Swan
Open Access
- Author:
- Nagpal, Ritika
- Area of Honors:
- Finance
- Degree:
- Bachelor of Science
- Document Type:
- Thesis
- Thesis Supervisors:
- Brian Spangler Davis, Thesis Supervisor
Brian Spangler Davis, Thesis Honors Advisor
Robert Alexander Novack, Faculty Reader - Keywords:
- Supply chain
bottlenecks
finance
markets
crisis
COVID-19 - Abstract:
- The pandemic uprooted the lives of millions of people around the world. To no surprise, companies faced disruptions unimaginable caused by a series of triggered events, particularly in their supply chains. Supply chain bottlenecks were seen as the primary cause of financial impacts, as costs for production increased and demand was unable to be fulfilled. With the reliance on outsourcing labor and raw materials, many industries faced supply chain crises that remained unsolved for months to follow. While supply chain issues have been disturbed before, the pandemic brought on a new set of challenges to overcome, and companies were left to make decisions on how to subsequently adapt their business models. This thesis serves to uncover the truth behind how companies handled supply chain bottlenecks, and what the financial implications were as a result. As for the research component, the information found in the literature review stems from primarily outside sources and consulting articles. The latter half of the thesis delves into interviews with various employers within leading industries affected by the pandemic, and their understanding of the damage the pandemic left behind on supply chains. Through interviews and research analysis, it was concluded that companies had no substantial changes in their business models during or post pandemic. Moreover, the overwhelming response was that companies saw supply chain bottlenecks as anomalies, or something that can be overcome. However, those that entered the pandemic with a business model conducive to flexibility saw greater success in controlling supply chain issues than those who did not.