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Coronavirus Outbreak Impact (CoVid-19) On Supply Chain, Logistics, Distribution And Production

Container Port

The development of the Coronavirus outbreak (CoVid-19) that struck the world three months recently has had a tremendous impact on the economic sector, including the supply chain, logistics and distribution sectors.

In addition to the economic sector in this case supply chain, some other sectors that also greatly feel the impact of the development of the Coronavirus outbreak, among others:
  • Education sector
  • Health sector
  • Tourism sector
  • Service sector
In addition, the impact of the Coronavirus outbreak is also penetrated to religious values, because of the prohibition of the government to perform Friday prayer prayers while for Muslims, or prohibition of worship in the church on Sunday Katsufumi for the People Christians and other religious worship.

1. Education Sector

The real impact we can see is the establishment of schools and other educational institutions by the Government. Even the government has decided that the national exam of 2020 in the Cancel in order to safeguard and prevent the transmission of Corona's virus.

2. Health Sector

With the development of the Coronavirus outbreak, there is a tremendous concern in society that this plague will continue to evolve and spread and difficult to respond.

It makes the psychological condition of society become anxious and can cause their physical weakness. The community requires additional motivation and encouragement from government authorities that they must believe that the government can overcome this Coronavirus outbreak.

3. Tourism Sector

The tourism sector is one of the heavily hit sectors of this coronavirus outbreak. Tourists visit both domestically and internationally decreased drastically because of the lid of tourist spots for a while and the fear of the community to travel for a while. 

The government has also established prohibitions on organizing gatherings and entertainment events that led to the gathering of many people. The aim, of course, is to prevent the transmission of Coronaviruses from widespread and uncontrollable.

Returning to the topic of the main discussion this time, namely Coronavirus plague Impact (CoVid-19) on the Supply Chain, logistics, distribution, and production, where the company where the authors work feel the direct impact of the disaster.

Starting from about December last year, when the first time the Coronavirus case was found in Wuhan, China. Sometime later the plague became very massive and uncontrollable, resulting in a Lockdown setting in the city of Wuhan with the intention of preventing the Coronavirus from spreading to other places.

As a result of the Coronavirus outbreak, the Chinese government then also took the policy of rewinding all the industrial activities there. Because of the policy, it will directly impact the supply of raw materials originating from the country.

Incidentally, almost 50 percent of the components of raw materials used in the author's company came from China, resulting in production activities become chaotic and messy. The company's turnover declined drastically during this period. In January, the production can still run normally because of the buffer stock material and also as part of China's order of components has been delivered and is on the way.

Entering the beginning of February the situation was not improved, where the Chinese government then took the decision to extend the holiday for the workers there. So in early February to mid-February, there is absolutely no shipment of component goods from the principal in China.

Addressing the situation, then the management of the company took the policy to produce the goods according to the components available in the warehouse. Therefore, the PPIC and supply chain parts are very close to the situation. 

PPIC should squeeze the brain in order to set the type of goods that are important and in need of marketing based on the spare part. The drawback should then cooperate with the supply chain, purchasing, and warehouse to find alternative components in the local market, although at the risk of the cost of goods are more expensive.

Then in the second period of February, workers in China have begun to go to work even though only a small part. To cover the shortage of components, the important component is forced to ask by air for an extra cost. Alhamdulillah, our efforts and hard work finally led to the results where the production turnover and sales in February can be achieved in accordance with the stipulated by the management.

Entering the month of March, this is a really full moon of struggle and extra work. When that shipment of components by boat has started the road at the end of February. It takes about 13 days to start from leaving until the clearance process in the port and the material arrives at the factory. That's the record, that all goes normally without any obstacles.

Shipping Container

But the fact said other, apparently, the container that carries the components are exposed to the red line in the port, so it must be checked with more detail by customs officials and of course takes a long time so that the components arrive at the factory. 

Confronting the reality eventually management decided to take the policy of a one-week dive production activity which of course was a tremendous disadvantage. But there is no other way because it is not possible to keep going to work without any production activity that can be done.

To quote what was published by that the Coronavirus outbreak (CoVid-19) had a bad impact on the import-export activities at the port, even at the port of the box flows deteriorated sharply due to reduced orders. One of them happens at the port of Tanjung Priok, Jakarta where the last two months of the container flow down about 5.13%.

During the period of January-February, the number of containers entering the port of Tanjung Priok reaches 992 thousand TEUs. As comparison at the same time in the previous year could reach the number 1 million TEUs.

As said by the Director of transformation of PT Pelindo II (IPC) Ogi Rulino that the decline is a direct impact and result of the spread of the Coronavirus, which was the beginning of its spread in Wuhan, China. This condition is understandable since the Corona outbreak emerged and flourished in China in December 2019, the production there immediately fell drastically ". As it is known China is the country that contributed the most to the number of container currents in the port of Tanjung Priok, Jakarta".

Same with that opinions, deputy field of distribution statistics and services Agency Central Statistic (BPS) Yunita Rusanti also stated that the Corona outbreak has indeed influenced export-import activities between Indonesia and China. During this period both the export and import activities from China and Indonesia both experienced a considerable decrease in number.

Marine Freight Expedition

Complaints that are not much different are also delivered by marine Freight expedition operator (EMKL) which during this period until now is experiencing a significant decline.

Until now, when I wrote this article, the container carrying components already arrived in the factory and in the last week of March this will be the week that really requires the hard work of all divisions in the company.

Our hope is, the easy-to-end of the Coronavirus outbreak will be resolved immediately so that all economic and other activities can be recovered and run normally again. We support all efforts and policies of the Government to overcome this Coronavirus outbreak.

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