COVID 19: THE IMPACT OF TECHNOLOGY AND SUPPLY CHAIN

The COVID 19 pandemic continues to ravage economies and disrupt business activities all over the globe. Restriction measures, including working from home alternatives have brought about a dynamic change in the way companies and other large-scale investments conduct their operations. For many small-scale entrepreneurs, the pandemic has resulted in the retrenchment of employees, plus huge business losses with regards to markets, profits, and the disruption of the supply chain. However, some firms have utilized technology as an effective mode of adapting to a challenging environment.

The term paper considers the impact of technology in managing the COVID 19 crisis and looks into the ways that the pandemic has disrupted the supply chain of various products within the market. The paper also highlights examples, economic models, and looks into ways through which businesses can adapt and overcome the negative effects of the virus.

The impact of technology in managing the COVID 19 pandemic.

The ongoing pandemic has helped fuel the adoption of technology across major industries such as the finance industry, education industry among others. In Kenya for instance, a number of companies relied on labor-intensive production methods as a cheaper and more sustainable means of production. However, with the ongoing pandemic, firms have been forced to rethink this strategy, instead opting for more capital-intensive production methods.

The following section considers some of the areas where the use of technology has played a major role in ensuring that normal operations continue despite the crisis.

Remote working

Government regulations and policies currently favor working from home measures for firms and companies operating within the country. Employees are discouraged from going to work in offices, meeting in public spaces in a bid to contain the spread of the virus. Therefore, the implementation of remote offices and work centers has undergone tremendous growth over the last few months. Internet companies such as Faiba, Safaricom, and Zuku have seen an influx of new clients as new customers continue to engage them for their services. These remote offices are largely supported by internet connectivity within the country.

Video conferencing

Technology has played a significant role in mitigating the negative effects of the COVID 19 virus pandemic. In previous times, meetings would be held in boardrooms, conference halls, and other public spaces. However, with the ongoing pandemic video conferencing is now a common occurrence. Software such as Skype, Zoom, and Google has helped people to connect much more easily, therefore, enabling them to convene, discuss, and make decisions despite their different geographical locations.

Online education

The ongoing crisis has caused a majority of learning institutions to remain closed. Students, teachers, and staff are no longer allowed to meet, interact, and share ideas from an educational perspective. However, with the help of computer software, online systems, and some ingenuity learning continues through the use of online educational systems. For instance, In Kenya, several universities are taking online classes as an effective learning model during the pandemic. This allows teachers and students to share their knowledge on a number of topics without having to step into a classroom. The creation of virtual classrooms shows that the adoption of technology in the education sector can help facilitate the effective dissemination of information much more easily than previously thought.

Cashless systems

The adoption of cashless payment systems has undergone tremendous growth over the last few months. People view these systems as a safer way of accessing finances, a factor that has resulted in the widespread acceptance of payment systems such as Mpesa as a viable substitute to cash. The widespread use of Mpesa can be attributed directly to the COVID 19 crisis. For example, a few months ago it was rather difficult to use the system to pay for transport fare. Today, however, people are actually encouraged to use Mpesa while paying for products and services, as exposure to cash may result in increased chances of infection.

Online financial services

Several financial entities have moved their services online in a move to discourage large gatherings of people, maintain social distancing measures, and promote the use of technology in the provision of sustainable solutions to current problems. For instance, banks such as The Cooperative Bank of Kenya, KCB, and others have created systems that enable their customers to access their services without having to enter into a banking hall. So far, the systems seem to be working well and can be expected to continue even after the pandemic runs its cause.

The impact of COVID 19 on the supply chain

Global movement restrictions of goods and people have affected the distribution of essential commodities leading to a shift in the demand and supply of essential products and materials. The COVID 19 pandemic has had a significant impact on the supply chain of different economies.

The following section considers the impact of the pandemic on the distribution networks and the effects on the supply chain in Kenya.

The growth of eCommerce

eCommerce has become a reliable means for sellers and buyers to interact through the use of online market platforms such as Jumia, Msoko, Kilimall, and others. The sector has undergone tremendous growth since the onset of the virus as sellers, buyers, distributors and other stakeholders in the market continue to look for reliable ways to obtain products. The growth of eCommerce has changed the way Kenyans think of online markets by providing a reliable alternative in the time of crisis.

Rethinking supply chain channels

The impact of the COVID 19 pandemic relates to the rethinking and restrategizing of existing supply channels. For instance, government restrictions on trade have created problems for suppliers of imported products within the country. The move has caused the suppliers of these products to look for alternative ways through which they can maintain inventory without inflating their prices.

Boost to local manufacturing

The pandemic and the subsequent disruption of the existing distribution channels have given a boost to the local manufacturing sector. Kenyans have resulted in creating ways to produce some products (such as spare parts) locally as opposed to waiting until the measures ease.

Implications on globalization

The COVID 19 pandemic has resulted in questions on globalization as the ideal economic model for the country. Currently, countries that rely on globalization to facilitate commerce have suffered severe economic consequences, therefore raising questions from economic experts on what the ideal economic model of the country should be.

Conclusion

The pandemic has both negative and positive consequences for the country. On one hand, the country is suffering economically from the loss of jobs, existing supply networks, insufficient profit margins, and loss of productivity. However, there exist several positives that include the increased adoption of technology, reviews into the country’s economic models, ingenuity, and the growth of local manufacturing. It is important to use the experiences learned from the pandemic as effective learning tools and implement measures to ensure that the country safeguards its economic, social future.

Do you like this read?

Comment,

And let us know