Table 1.
Supply chain challenges.
| Sr. No. | Key challenges | Code | Implied Meaning | References |
|---|---|---|---|---|
| 1 | Uncertainty of Demand | PLD | Irregularity and inconsistency in orders received from customers due to shifts in buying behaviour, including decline in consumption of high-value commodities, lack of awareness regarding COVID-19, and non-consumption of certain food items causing demand disruption. | Okorie et al., 2020, Hippold, 2020 |
| 2 | Inconsistency of supply | PIS | Constraints and uncertainty at the vendor’s end coupled with volatility in price and quantity of essential raw material leading to the barrier of inconsistent supply. | Okorie et al., 2020, Paul and Chowdhury, 2020, Razdan and Kumar, 2020 |
| 3 | Scarcity of Material | SSM | Scarcity of material in the market due to surges in demand caused by hoarding and panic buying, coupled with questionable continuity of operations at supplier’s end, including unavailability of imported goods owing to nationwide lockdown situation. | Agrawal et al., 2020, Biswas and Das, 2020, Okorie et al., 2020, Doshi, 2020, Razdan and Kumar, 2020 |
| 4 | Delay in Delivery | SDD | Restrictions on imports as well as local transport, coupled with certain routes involving detours due to restricted zones, slower movement of goods, higher lead times, thus leading to delay in delivery as a supply chain barrier. | Biswas and Das, 2020, Hippold, 2020 |
| 5 | Suboptimal Substitute Adoption | SSA | Closure of operations of existing critical suppliers, coupled with the availability of suboptimal alternatives/substitutes in the market, leading organizations to procure such alternatives, causing poor quality, rework, and other supply chain issues. | Deloitte, 2020, Razdan and Kumar, 2020 |
| 6 | Scarcity of Labour | PSL | Imposed lockdown restrictions leading to a reduction in wages, lack of employment and sustenance issues, causing skilled migrant workers to move back to their respective states, leading to scarcity of workforce and a major barrier to efficient supply chain operations in an emerging economy like India. | International Labour Organization, 2020, World Economic Forum, 2020a, Agrawal et al., 2020, Biswas and Das, 2020, Okorie et al., 2020, The Economist, 2020 |
| 7 | Suboptimal Manufacturing | PSM | The majority of manufacturing hubs across India being located in regions that were categorized as red (restricted) zones, with complete closure leading to limited manufacturing activity. Further, uncertain demand and inconsistent supply led to the manufacturing of a suboptimal product portfolio mix further contributing as a barrier to the supply chain. | World Economic Forum (2020b), Agrawal et al., 2020, Gupta et al., 2020, Razdan and Kumar, 2020 |
| 8 | Constraint in Capacity (Storage) | SCC | Declining consumer optimism and lack of demand for high-value non-essential commodities leading to the stocking of products in warehouses and distribution hubs, causing working capital blockage and liquidity issues | Razdan and Kumar, 2020, Gupta et al., 2020, Hippold, 2020 |
| 9 | Vehicle Unavailability and Delays | DVU | Lack of commercial trucks travelling between key routes, severe restrictions on exports, and local transport coupled with delivery routes in restricted zones leading to vehicle unavailability and delays in delivery as a supply chain barrier. | Doshi, 2020, Hippold, 2020, Biswas and Das (2020). |
| 10 | Last-Mile Delivery Challenges | DLM | Most urban areas, which contain the majority of the population, being categorized as a restricted zone. Switching routes to bypass these zones leading to in-transit delays. Local and state-level regulations and delays associated with electronic pass issuance, compliance, and validity contributing to last-mile delivery challenges. | Agrawal et al., 2020, Ketchen and Craighead, 2020, Gupta et al., 2020, Razdan and Kumar, 2020, Choi (2020) |