Supply Chain Disruptions: Redefining Supply Chains for Nigerian MSME - by Shulammite Paul

With the advent of the Corona Virus pandemic, Nations around the globe came to a rude awakening that global supply chains directly or indirectly linked to China, and when China shut down, there occurred serious disruptions to global supplies and operations. The world suffered a paralysis never envisaged since the great depression of the 1930s. Nations around the world were forced to rethink their business models and many have come to accept that it can no longer be business as usual. With COVID-19, industries shut their doors not only to the virus but because raw materials were in short supply, and markets for finished goods were lost. It became necessary then to once more take an inwards look to identify sustainable means of ensuring that businesses continue to thrive in the face of global adversities and such as a pandemic.

Innovative disruptions are necessary for building resilient economies and industries. Nigerian industries gave a huge outcry with the looming crisis as countries closed down their borders to import and export. When the oil market crashed with crude going to as low as 10 dollars per barrel, more outcries arose as the nation’s main source of foreign exchange became apparently crippled. Without forex, it will be impossible to procure the much needed raw materials to service industries and this will have the ripple effect of reducing household income as jobs will be lost and consumption dwindling as individuals spending capacities are reduced. It is imperative then for these industries to begin to identify new supply sources for raw materials and local/regional demand chains for their finished goods. The essence of this is to narrow markets to the most immediate environment.

 The government should to all purpose and intent own up to the ills of managing an import dependent industrial economy, and begin to appreciatively look inward to building and strengthening the capacities of local and regional markets. Industries and Enterprises should begin to rethink their processes so as to repurpose to generate new supply systems.

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Emerging situations post COVID-19 will definitely introduce new multifaceted dynamics. With inflation constantly on the rise and the economy fastly shrinking, it is pertinent that a sustainable cost-effective system be grafted in as soon as possible to cushion the negative effects of these on the nation and livelihood.

This is a call for the deepening of thoughts, re-focus, and change in strategic direction.