The impact of COVID-19 pandemic on supply chain performance : a case of an earth-moving equipment manufacturer

Abstract

The COVID-19 pandemic impacted the supply chain performance of an earth-moving equipment manufacturer in KwaZulu-Natal, South Africa. The pandemic damaged the company's supply chain, causing material shortages and production problems which made it difficult to satisfy customer demand. This research aims to maximize the supply chain of an earth-moving equipment manufacturer in South Africa through the identification and addressing of supply chain blockages that were created by the COVID19 pandemic. The study seeks to characterise the defining elements of supply chain, identify factors affecting performance, apply value stream mapping for efficiency, and develop a framework model for supply chain optimization. Ultimately, the study seeks to address gaps in comprehending the long-term effects of the pandemic on earth-moving equipment manufacturers' supply chains and propose strategies to build resilience against future disruption. Quantitative approach was used to analyse forecast data against actual deliveries to control productivity and delivery performance. Six Sigma, cause-and-effect diagrams, and time studies methods were used to identify inefficiencies. Supply change elements were characterised using Gemba walks and process flow mapping, which provided direct observations of operations and visualizing interconnected processes. Pareto analysis, cause-effect diagrams, value stream mapping, and time studies were used for identifying supply chain performance issues, improving supply chain efficiency, and recognizing waste and production blockages. Qualitative observations and quantitative measurements of production processes were used for data collection. The methodology provided a comprehensive insight into the supply chain problems and areas to apply targeted improvements to increase efficiency and customer satisfaction. Findings highlighted the importance of developing strategies including diversification among suppliers, workforce development, logistics optimization, adoption of digital technologies, and improvement in demand planning. The study also identified that adaptable production scheduling increased the company's capability to meet customer demands. The influencing factors on supply chain performance were found to be inventory management problems, supplier reliability, workforce issues, and technological adoption, requiring a collaborative approach for long-term supply chain resilience. The study concluded that a comprehensive approach to technological adoption, workforce development, supplier collaboration, and flexible operations is fundamental for maximizing performance within the supply chain and building resilience against future disruptions.