Modeling Impacts of COVID-19 in Supply Chain Activities: A Grey-DEMATEL Approach
Abstract
:1. Introduction
- What are the various impacts of COVID-19 on supply chain activities?
- How can the causal interrelationships among the various COVID-19 impacts be revealed?
- Do the outcomes provide better insights for industrial practitioners to formulate strategies in overcoming the COVID-19 impacts?
2. Literature Review
2.1. Supply Chain Management
2.2. COVID-19 Impacts on Supply Chain Activities
2.3. Research Gaps
3. Research Methodology
3.1. Data Collection
- First, a literature review was carried out to collect research articles for this study. Articles were identified in scientific databases such as SCOPUS, Web of Science, Google Scholar, EBSCO, and ScienceDirect. Several keywords such as ‘COVID-19 AND developing countries’, ‘Impact of COVID-19 in supply chains’, ‘COVID-19 AND sustainability’, ‘COVID-19 AND SDGs’, and ‘COVID-19 AND global trade’ were used for the collection of the articles. In the initial stage, 100+ articles were taken from a variety of journals. Next, a screening process was introduced to find the most relevant papers. The articles included in the literature review were selected based on the following inclusion criteria: (i) articles published in English only considered, (ii) must be peer-reviewed, and (iii) articles focusing on the COVID-19 impacts on supply chains were considered. The exclusion criteria included conference proceedings, short communications, and duplicative works. After the final screening, only 33 articles were found to match the criteria to conceptualize this study’s supply chain disruption risk constructs and variables. Therefore, these articles were acknowledged in this study.
- However, to identify the impacts in a real-life scenario, in-depth interviews with supply chain managers were conducted from November 2020 to May 2021. Fifty-five supply chain managers engaged in global trade were approached for the interviews via email and, out of 55, only 32 were interviewed. The interview started with a basic introduction of COVID-19 and how it has affected industrial activities. Finally, the interview focused on identifying the COVID-19 impacts on supply chain activities. From these interviews, few impacts were identified.
- Finally, a workshop was conducted with the 32 supply chain managers (6—import/export specialist, 8—demand planning manager, 8—transportation planner, 6—distribution manager, and 4—business analyst). These 32 managers were from the automobile sector, leather sector, agricultural sector, handicraft sector, and textile sector. Managers from these sectors were chosen as these sectors were considered to be a lifeline source of income for semiskilled and economically marginalized people. Similar to other sectors, during COVID-19, these sectors were forced to shut down their activities. Such a shut down hardly impacted the socioeconomic conditions of the people who relied on these sectors. The profiles of the managers and their respective companies are given in Table 1 and Table 2. The companies considered in this study are located in Chennai and companies from this region were selected as this region significantly contributes to the gross domestic product (GDP) of India and has been a job provider for semiskilled people. Here, a list of 25 COVID-19 impacts on the supply chain was identified from the literature review and interviews were carried out with the managers. They were asked to mark the impacts that appeared to be significant from their view and the neglect impacts that they felt were insignificant. By consolidating the responses of the 32 managers, 20 common impacts were selected. The finalized COVID-19 impacts considered for this study are given in Table 3.
3.2. Testing Reliability, Validity, and Sampling Adequacy
3.3. Exploratory Factor Analysis (EFA)
3.4. Grey-DEMATEL
4. Results and Discussions
Comparison with Other Studies
5. Implications of the Study
6. Conclusions
Author Contributions
Funding
Institutional Review Board Statement
Informed Consent Statement
Data Availability Statement
Acknowledgments
Conflicts of Interest
Appendix A
S. No | COVID-19 Impacts | Likert’s Scale (5—Completely Agree, 4—Agree, 3—Neutral, 2—Disagree, 1—Completely Disagree) |
---|---|---|
1 | Technical workforce shortage (OM1) | |
2 | Stalled industrial activity (OM2) | |
3 | Difficulty in demand forecasting (OM3) | |
4 | Reduced production capacity (OM4) | |
5 | Disproportionateness between supply and demand (OM5) | |
6 | Obsolescence of machines (SM1) | |
7 | Production disruption and backlog (SM2) | |
8 | Disruption in supply (SM3) | |
9 | Pilling up of inventory (SM4) | |
10 | Increased transportation cost (DM1) | |
11 | Lack of supplier engagement (DM2) | |
12 | Increased lead time to delivery (PM1) | |
13 | Lack of international trade (PM2) | |
14 | Supply chain collapse (RM1) | |
15 | Lack of physical distribution channel (RM2) | |
16 | Ripple effect on supply chain operations (RM3) | |
17 | Mass layoffs (IM1) | |
18 | Lockdown restriction (IM2) | |
19 | Distress on Return of investment (LM1) | |
20 | Reduced cash inflow (LM2) |
Appendix B
Area of Impacts | OM | SM | DM | PM | RM | IM | LM |
---|---|---|---|---|---|---|---|
OM | 0 | ||||||
SM | 0 | ||||||
DM | 0 | ||||||
PM | 0 | ||||||
RM | 0 | ||||||
IM | 0 | ||||||
LM | 0 |
Appendix C
COVID-19 Impacts | OM1 | OM2 | OM3 | OM4 | OM5 | SM1 | SM2 | SM3 | SM4 | DM1 | DM2 | PM1 | PM2 | RM1 | RM2 | RM3 | IM1 | IM2 | LM1 | LM2 |
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
OM1 | 0 | |||||||||||||||||||
OM2 | 0 | |||||||||||||||||||
OM3 | 0 | |||||||||||||||||||
OM4 | 0 | |||||||||||||||||||
OM5 | 0 | |||||||||||||||||||
SM1 | 0 | |||||||||||||||||||
SM2 | 0 | |||||||||||||||||||
SM3 | 0 | |||||||||||||||||||
SM4 | 0 | |||||||||||||||||||
DM1 | 0 | |||||||||||||||||||
DM2 | 0 | |||||||||||||||||||
PM1 | 0 | |||||||||||||||||||
PM2 | 0 | |||||||||||||||||||
RM1 | 0 | |||||||||||||||||||
RM2 | 0 | |||||||||||||||||||
RM3 | 0 | |||||||||||||||||||
IM1 | 0 | |||||||||||||||||||
IM2 | 0 | |||||||||||||||||||
LM1 | 0 | |||||||||||||||||||
LM2 | 0 |
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Characteristics | n | % | ||
---|---|---|---|---|
Managers (n = 32) | Job title | Import/export specialist | 6 | 18.75 |
Demand planning manager | 8 | 25 | ||
Transportation manager | 8 | 25 | ||
Distribution manager | 6 | 18.75 | ||
Business analyst | 4 | 12.5 | ||
Experience | Up to 10 years | 8 | 25 | |
10–15 years | 6 | 18.75 | ||
16–20 years | 8 | 25 | ||
20–25 years | 10 | 31.25 | ||
Educational qualification | Graduate | 14 | 43.75 | |
Post-graduate | 10 | 31.25 | ||
Doctorate | 8 | 25 |
Features | Company 1 (Automobile Sector) | Company 2 (Agricultural Sector) | Company 3 (Leather Sector) | Company 4 (Handicraft Sector) | Company 5 (Textile Sector) |
---|---|---|---|---|---|
Year of establishment | 1998 | 2000 | 2001 | 2000 | 2003 |
Workforce strength | >100 | 100–150 | 80–100 | 50–100 | 100–150 |
Products | Gears, chain sprocket | Pulses, cereals, nuts | Belt, jacket, shoes | Decorative items | Shirts and pants |
Annual turnover (in INR) | 100 crores | 60 crores | 50 crores | 30 crores | 60 crores |
COVID-19 Impacts | Definition | References |
---|---|---|
Technical workforce shortage | Restricted movement of labor results in technical workforce shortages | [11,51,52] |
Stalled industrial activity | Lack of workforce and demand halted industrial activity | Input from managers |
Difficulty in demand forecasting | Being unsure about the buying capacity of people, it is difficult to predict the demands | [53] |
Reduced production capacity | Insufficient demand in the market results in a reduction of production capacity | [3] |
Disproportionateness between supply and demand | Supply and demand equation has been collapsed due to panic buying | [54] |
Obsolescence of machines | Prolonged suspension of production made the machine obsolete | Input from managers |
Production disruption and backlog | Industries were unable to complete the earlier committed assignments | [54] |
Disruption in supply | Lockdown restriction prohibited the movement of supply | [54] |
Pilling up of inventory | Absence of market demand increased the inventory | [54,55] |
Increased transportation cost | Limited transportation option is directly proportional to increased transportation cost | [54,56] |
Lack of supplier engagement | Citing uncertainty in the global market, most of the suppliers disengage from the supply chain network | [3,57] |
Increased lead time to delivery | Collapsed supply chain network increase the delivery time | [53] |
Lack of international trade | Segmented lockdown restricted global trade | [55] |
Supply chain collapse | Individual lockdown by different countries collapsed the supply chain network | [11] |
Lack of physical distribution channel | Disengagement of suppliers creates a void in the supply chain network | [58] |
Ripple effect on supply chain operations | Suspension of supply chain activity in one end creates catastrophe at the other end | [3] |
Mass layoffs | Absence of industrial activity leads to mass layoffs | [52,55,58] |
Lockdown restriction | Imposed to control COVID-19 outbreak | [51] |
Distress on Return of investment | Stalled industrial activity raised a question on the return of investment | [52] |
Reduced cash inflow | Absence of supply and demand activity reduced cash inflow | [55] |
COVID-19 Impacts | Mean | Standard Deviation | Corrected Item-Total Correlation | Squared Multiple Correlation | Cronbach’s Alpha If Item Deleted |
---|---|---|---|---|---|
Technical workforce shortage | 4.3833 | 0.92226 | 0.251 | 0.312 | 0.755 |
Stalled industrial activity | 4.3500 | 0.87962 | 0.198 | 0.277 | 0.758 |
Difficulty in demand forecasting | 4.0500 | 1.03211 | 0.125 | 0.307 | 0.763 |
Reduced production capacity | 4.0667 | 1.17699 | 0.366 | 0.514 | 0.746 |
Disproportionateness between supply and demand | 4.1500 | 1.17639 | 0.234 | 0.573 | 0.757 |
Obsolescence of machines | 4.1833 | 1.01667 | 0.221 | 0.428 | 0.757 |
Production disruption and backlog | 4.1500 | 1.07080 | 0.402 | 0.518 | 0.744 |
Disruption in supply | 4.0167 | 1.15702 | 0.291 | 0.607 | 0.752 |
Pilling up of inventory | 4.0833 | 1.09377 | 0.184 | 0.525 | 0.760 |
Increased transportation cost | 4.1833 | 1.03321 | 0.313 | 0.462 | 0.750 |
Lack of supplier engagement | 4.1000 | 1.05284 | 0.557 | 0.478 | 0.733 |
Increased lead time to delivery | 4.1667 | 1.07619 | 0.304 | 0.319 | 0.751 |
Lack of international trade | 4.3000 | 0.92608 | 0.410 | 0.518 | 0.745 |
Supply chain collapse | 4.3000 | 0.84973 | 0.539 | 0.553 | 0.738 |
Lack of physical distribution channel | 4.0000 | 1.14980 | 0.104 | 0.442 | 0.767 |
Ripple effect on supply chain operations | 4.0833 | 1.12433 | 0.458 | 0.621 | 0.739 |
Mass layoffs | 4.0667 | 1.08716 | 0.363 | 0.499 | 0.747 |
Lockdown restriction | 4.0167 | 1.17158 | 0.339 | 0.402 | 0.749 |
Distress on Return of investment | 4.1667 | 1.07619 | 0.260 | 0.393 | 0.754 |
Reduced cash inflow | 3.9000 | 1.13047 | 0.569 | 0.565 | 0.730 |
Area of Impacts | COVID-19 Impacts | Factor Loadings |
---|---|---|
Organization management (OM) Cronbach 0.655 | Distress on return of investment (OM1) | 0.695 |
Mass layoffs (OM2) | 0.644 | |
Difficulty in demand forecasting (OM3) | 0.594 | |
Production disruption and backlog (OM4) | 0.505 | |
Technical workforce shortage (OM5) | 0.422 | |
Supply management (SM) Cronbach 0.782 | Supply chain collapse (SM1) | 0.755 |
Disruption in supply (SM2) | 0.559 | |
Reduced production capacity (SM3) | 0.550 | |
Increased lead time to delivery (SM4) | 0.529 | |
Disruption management (DM) Cronbach 0.846 | Ripple effect on supply chain operations (DM1) | 0.749 |
Reduced cash inflow (DM2) | 0.670 | |
Production management (PM) Cronbach 0.765 | Stalled industrial activity (PM1) | 0.774 |
Lack of international trade (PM2) | 0.636 | |
Relationship management (RM) Cronbach 0.627 | Obsolescence of machines (RM1) | 0.740 |
Lack of physical distribution channel (RM2) | 0.563 | |
Disproportionateness between supply and demand (RM3) | 0.532 | |
Inventory management (IM) Cronbach 0.796 | Lockdown restriction (IM1) | 0.467 |
Pilling up of inventory (IM2) | 0.867 | |
Logistics management (LM) Cronbach 0.823 | Lack of supplier engagement (LM1) | 0.735 |
Increased transportation cost (LM2) | 0.508 |
Linguistics Terms | Score | Grey Numbers |
---|---|---|
Very high influence (VH) | 4 | (0.75, 1.00) |
High influence (H) | 3 | (0.50, 0.75) |
Low influence (L) | 2 | (0.25, 0.50) |
Very low influence (VL) | 1 | (0.00, 0.25) |
No influence (N) | 0 | (0, 0) |
Area of Impacts | Cause/Effect | Weight | ||||
---|---|---|---|---|---|---|
OM | 10.78 | 13.26 | 24.04 | −2.47 | Effect | 0.1367 |
SM | 12.41 | 13.60 | 26.02 | −1.19 | Effect | 0.1473 |
DM | 16.59 | 11.28 | 27.88 | 5.31 | Cause | 0.1605 |
PM | 10.41 | 10.23 | 20.64 | 0.18 | Cause | 0.1167 |
RM | 13.60 | 11.75 | 25.35 | 1.85 | Cause | 0.1438 |
IM | 11.82 | 14.53 | 26.34 | −2.71 | Effect | 0.1498 |
LM | 12.35 | 13.31 | 25.66 | −0.96 | Effect | 0.1452 |
COVID-19 Impacts | Cause/Effect | Weight | ||||
---|---|---|---|---|---|---|
OM1 | 8.41 | 9.86 | 18.27 | −1.45 | Effect | 0.0460 |
OM2 | 9.36 | 8.78 | 18.14 | 0.58 | Cause | 0.0455 |
OM3 | 7.05 | 13.15 | 20.20 | −6.09 | Effect | 0.0529 |
OM4 | 9.22 | 10.82 | 20.04 | −1.60 | Effect | 0.0504 |
OM5 | 11.53 | 8.05 | 19.58 | 3.47 | Cause | 0.0499 |
SM1 | 10.18 | 7.72 | 17.89 | 2.46 | Cause | 0.0453 |
SM2 | 13.29 | 8.80 | 22.09 | 4.50 | Cause | 0.0565 |
SM3 | 8.87 | 9.92 | 18.78 | −1.05 | Effect | 0.0472 |
SM4 | 8.65 | 9.33 | 17.98 | −0.68 | Effect | 0.0451 |
DM1 | 14.19 | 9.84 | 24.03 | 4.35 | Cause | 0.0613 |
DM2 | 5.30 | 12.25 | 17.55 | −6.95 | Effect | 0.0473 |
PM1 | 9.28 | 9.22 | 18.50 | 0.06 | Cause | 0.0464 |
PM2 | 10.13 | 9.71 | 19.84 | 0.43 | Cause | 0.0498 |
RM1 | 10.78 | 7.26 | 18.04 | 3.51 | Cause | 0.0461 |
RM2 | 11.32 | 9.73 | 21.04 | 1.59 | Cause | 0.0529 |
RM3 | 7.40 | 11.64 | 19.04 | −4.24 | Effect | 0.0489 |
IM1 | 10.91 | 9.17 | 20.08 | 1.74 | Cause | 0.0506 |
IM2 | 8.24 | 10.30 | 18.54 | −2.06 | Effect | 0.0468 |
LM1 | 12.33 | 10.11 | 22.44 | 2.22 | Cause | 0.0566 |
LM2 | 10.45 | 11.25 | 21.70 | −0.80 | Effect | 0.0545 |
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Karuppiah, K.; Sankaranarayanan, B.; Ali, S.M. Modeling Impacts of COVID-19 in Supply Chain Activities: A Grey-DEMATEL Approach. Sustainability 2022, 14, 14141. https://doi.org/10.3390/su142114141
Karuppiah K, Sankaranarayanan B, Ali SM. Modeling Impacts of COVID-19 in Supply Chain Activities: A Grey-DEMATEL Approach. Sustainability. 2022; 14(21):14141. https://doi.org/10.3390/su142114141
Chicago/Turabian StyleKaruppiah, Koppiahraj, Bathrinath Sankaranarayanan, and Syed Mithun Ali. 2022. "Modeling Impacts of COVID-19 in Supply Chain Activities: A Grey-DEMATEL Approach" Sustainability 14, no. 21: 14141. https://doi.org/10.3390/su142114141
APA StyleKaruppiah, K., Sankaranarayanan, B., & Ali, S. M. (2022). Modeling Impacts of COVID-19 in Supply Chain Activities: A Grey-DEMATEL Approach. Sustainability, 14(21), 14141. https://doi.org/10.3390/su142114141