კონფერენცია

∘ Nino Kvaraia ∘
IMPACT OF THE PANDEMIC ON GLOBAL SUPPLY CHAINS

Summary

The coronavirus pandemic has disrupted global operations in all sectors and industries of the economy. The challenges are mainly caused by the constraints that countries have adopted and implemented globally as part of their strategy to combat the spread of the pandemic:Suspension of production, restriction of movement of people and goods, closure of borders, logistical restrictions, as well as slowdown in trade and business activities as a result of measures taken to block COVID-19.

The emergence of the virus in China, which is one of the major hubs of production and distribution globally, has had a major impact on the supply of finished and semi-finished products for many countries around the world that are logistically linked to China.Over the past decade and a half, China has become the world's largest exporter, exporting about $ 2.3 trillion worth of goods annually (according to the WEF).

The United Nations (UN) estimates that the world trade would have declined by almost 15% in 2020 amid a sharp decline in global demand and disruptions in the global supply chain.

As a result of all this, entrepreneurs around the world are under increasing political and competitive pressure to increase their domestic production and employment in their own countries, reduce or even eliminate dependence on risky sources, and reconsider their use in effective manufacturing strategies.Once information on the epidemic is received, it is likely that the competitive leader in supply chain will move to more complete proactive modeling of operations. Companies need to analyze their supply chains more deeply and systematically.

The main benefit of having local suppliers is that they can be more reliable, responsive and visible. It is not only possible to develop individual relationships with local suppliers and visit regularly, but also to use simple tools available for collaboration.This also reduces the overall risk. Companies can simulate shorter supply chains and determine where the risk of extended global supply chains can be reduced by increasing localization.

Ivane Javakhishvili Tbilisi State University Paata Gugushvili Institute of Economics International Scientific C O N F E R E N C E S "ECONOMY – XXI CENTURY"

E ISSN 2587 - 4691	∘ Nino Kvaraia ∘ IMPACT OF THE PANDEMIC ON GLOBAL SUPPLY CHAINS Summary The coronavirus pandemic has disrupted global operations in all sectors and industries of the economy. The challenges are mainly caused by the constraints that countries have adopted and implemented globally as part of their strategy to combat the spread of the pandemic:Suspension of production, restriction of movement of people and goods, closure of borders, logistical restrictions, as well as slowdown in trade and business activities as a result of measures taken to block COVID-19. The emergence of the virus in China, which is one of the major hubs of production and distribution globally, has had a major impact on the supply of finished and semi-finished products for many countries around the world that are logistically linked to China.Over the past decade and a half, China has become the world's largest exporter, exporting about $ 2.3 trillion worth of goods annually (according to the WEF). The United Nations (UN) estimates that the world trade would have declined by almost 15% in 2020 amid a sharp decline in global demand and disruptions in the global supply chain. As a result of all this, entrepreneurs around the world are under increasing political and competitive pressure to increase their domestic production and employment in their own countries, reduce or even eliminate dependence on risky sources, and reconsider their use in effective manufacturing strategies.Once information on the epidemic is received, it is likely that the competitive leader in supply chain will move to more complete proactive modeling of operations. Companies need to analyze their supply chains more deeply and systematically. The main benefit of having local suppliers is that they can be more reliable, responsive and visible. It is not only possible to develop individual relationships with local suppliers and visit regularly, but also to use simple tools available for collaboration.This also reduces the overall risk. Companies can simulate shorter supply chains and determine where the risk of extended global supply chains can be reduced by increasing localization.