Analysing the COVID-19 disruptive impact on Montevideo’s Supply Chains

Abstract

Globally, COVID-19 reached unprecedented levels of contagion, affecting the social meetings, public spaces, and many everyday aspects. During the first days of the pandemic, supply chains were severely impacted by a great uncertainty in socio-economic terms, causing irrational variations and the inability to forecast demand. In this paper, the effect of the COVID-19 pandemic on the behaviour of different companies is analysed based on the variation in supply and demand of consumer-packaged goods. The pandemic outbreak disruption, the bullwhip effect caused by demand fluctuations, and the resilience of different companies were studied. A multiple case study methodology is used to analyse the decision-making process of fourteen different companies, from diverse sectors in Uruguay, affronting the pandemic. The paper’s main findings include the identification of disruption and operation risks along with coordination in supply chain management during the first four months of the pandemic. Moreover, due to the necessity of sanitation and comestibles, and the fear of stockout, consumers’ demand was uncertain, and the bullwhip effect was observed in critical channels of some products. Finally, the resiliency and robustness of the affected companies were studied and good practices for a resilient and robust response to the pandemic were identified and analysed.