The impact of COVID-19 on supply chain decision-making of Gozitan organisations

Abstract

This study's primary goal is to examine the COVID-19 impact on the supply chain decisionmaking process of Gozitan organisations. This will be achieved by understanding the supply chain decision-making process during COVID-19. This study also aims to gain a better understanding of the adaptability of these organisations to the changing conditions and evaluate what is happening in a post-COVID-19 world. The manufacturing industry and importers and retailers are the two main industries which will be analysed in this study. Interpretive research philosophy and in-depth semi-structured interviews were used. Interviews were held with 24 top-level managers. Since the study's main focus is on the impact that COVID-19 had on Gozitan businesses’ supply chains, only Gozitan SMEs were chosen. A diversity case sampling was used to select the case studies. An exploratory mindset was adopted when designing this research. To analyse the qualitative data collected, thematic analysis was used and a deductive approach was taken in the design of this study. From the primary data collected, all participants stated that before the pandemic, the supply chain was routine, however, this is no longer the case. None of the participants were prepared for the pandemic, and no one had a contingency plan in place. Businesses were faced with delay in orders, rising costs, increase in freight costs as well as delays with installations. Some were faced with cash flow problems because clients were taking longer to pay but they were given less time to pay their suppliers. Businesses had to plan way ahead when placing orders to ensure that they always had enough material in stock. It was essential for the participants to increase their engagement with suppliers. Technology played a very important role during the pandemic because businesses had to opt to telework when possible. When businesses started to recover from the pandemic, they were immediately faced with the war which worsens the situation because it had stronger repercussions and the problems that businesses faced during the pandemic were prolonged during the war. When the participants were asked how they plan their future, three main concerns emerged. First, businesses are aware that they could face a recession. Secondly, after facing staggered interruptions, it is time for some businesses to start joining forces together. Finally, a major problem that is going to persist in the future is the labour shortage, given that employees are opting to work with the public sector instead due to more security.