Two undergraduate students of prestigious IIT Kharagpur, Rajnandni Sharma and Prathmesh Deshmukh, from the department of Industrial and Systems Engineering has pinpointed the ever growing transitional adaptation of the virus that has shaken the global economy.
The findings of the research ‘the effect of COVID 19 on Small Medium Enterprises‘ clarifies that the trade between geographies and different stages of the supply chain has resulted in several changes. The interdependence of supply chains, migration of labourers, cost overruns, and liquidity constraints are some of the looming challenges.
Bangalore based Hanumant Lal Shukla who have played the role of Sales coach for 25+ years have guided Rajnandni and Prathmesh in completing their project at Be Beta Consultancy. Speaking to News Sense, Mr Shukla said, “Rajnandni and Prathmesh contacted SME and MSE which contributes 95% of India’s GDP. Our idea was to understand their issues and suggest them right strategy to reduce the cost, change of product and improve the cash flow.They did a brilliant job in understanding the insight.”
Explaining the research further, Rajnandni said, “Resulting to shutting down of Restaurants, people retorting to home dining trends. There is also a potential risk of spreading the virus through mediums of product outputs, causing food safety concerns.The outbreak of coronavirus has had significant impact not only on public health worldwide but also on all stages of the supply chain and value chain of various industries.”
Globally, the food and beverage industry is still expected to experience the differential impact of this rapid spreading COVID-19 on each stage of its value chain through the mediums of the affected workforce at industrial level, raw material supply, trade and logistics, demand-supply volatility and uncertain consumer demand at foodservice outlets, among other factors. Production, distribution, and inventory levels across the food & beverage industry spectrum are impacted.
“The corporate level workforce is also at a high risk of being affected. Travel bans imposed by several countries are also a contributing factor, affecting the availability of critical personnel required in key decision-making. The workforce potentially affects business plans and industrial production of food & beverage products thus results to fall in the prices,” Says, Prathmesh.
Moreover, the Global Pandemic has essentially restricted movement across cities, nations, offices, retorting to an online medium work force and the social-distancing resulted to less interaction. Less interaction in true sense applies to no party gatherings, social distancing, thus resulting to stock price fall significantly.