The supply chain is a complex network of supplies and businesses which involves a multidirectional flow of products, services, information and finances ( Ketchen, 2020) . While dealing with supply chain management, operations managers are customarily faced with challenges in coordinating these movements across companies to reduce costs while improving the satisfaction of their clients to gain competitive advantage within the marketplace. Supply chain management as a competitive strategy has been used by various organizations such as McDonald's to take over the global food chain industry. Even though there is little evidence that shows how supply chain management initiatives affect the complexity of the process, it is clear that supply chain management is more about managing the complexity than it is on monitoring individual supply chain activities. Currently, operation managers are faced with challenges such as competition, changes in technology, shortage of raw materials and the recent outbreak of Coronavirus to manage their businesses which have affected their decision making processes. The implications of such complexities have affected the supply chain procurement of raw materials, inventory production, storage and deliveries to customers and should be addressed to manage interruptions within the supply chain and mitigate economic losses to an organization.
Implications of decision making on supply chain
Current events such as the novel Coronavirus and technological changes affect the procurement of raw materials and production of inventories within the supply chain. McDonald's, for example, is a franchise that its operations are in the food and supply chain business. The implication of the virus has affected the company's supply of raw materials and the production of inventories in a variety of ways. First, in light of the pandemic, there is now considerable concern about food production, processing, storage, supply, and demand ( Ketchen, 2020) . Because of the pandemic and movement restrictions of workers, consumer's need has changed, food production facilities have been closed, and food trade policies have been restricted. These have led to a shortage of supply of raw materials in McDonald's processing facilities, thereby impacting their decisions while they source for their supplies. Sunner, a poultry company based in China, has had less supply of chicken to McDonald's. The company, based in Jiangxi province in China is one of the largest supplies of McDonald's distributing over 20 tons of chicken monthly ( Ketchen, 2020) . However, the travel restrictions will implicate the supply of raw materials to the food chain giant, significantly reducing the company's output potential to its clients. Overall, in three months, the coronavirus leads to a decline in the number of trucks delivering food by 30% in the United States. Low supply of raw materials and movement restrictions lead to a low number of production inventories, warehouse storage and eventually, deliveries made to customers. The impact of the virus on supply chain management has, therefore prompted the management of businesses including but not limited to the food industries to change their decision making processes to adapt during global pandemics.
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Suggestions to manage interruptions in the supply chain
According to Ketchen's research on the impact of Coronavirus on supply chain management, over 13 per cent of the business supply chain is severely affected, including McDonald's and other businesses revolving around the agricultural sector ( Ketchen, 2020) . Over 19 per cent of companies in the United States are working to reduce their exposure in markets with low costs while over 26 per cent are exploring domestic supply alternatives ( Ketchen, 2020) . Even though the options are valid, the adoption of automation technologies will manage interruptions of the supply chain in business globally. Automation of the supply chain might include real-time engagement with suppliers to streamline business processes while reducing manual tasks. Automation of other supply management tasks such as the production of inventories and stock management may provide high returns on investments giving businesses a competitive advantage in the marketplace. Automation also makes repetitive tasks such as contracting of suppliers and invoicing seamless, eliminating human errors and increasing transparency, thereby mitigating significant supply management risks.
Conclusion
Decision making is vital in Supply Chain management as it helps mitigate serious risks that might arise. Challenges that emerge while coordinating companies' movements and facing them help in cost reduction and even customer satisfaction. The supply of raw materials, as well as inventory production, has been significantly affected by different forces: for instance, the current Coronavirus pandemic. Also, several food companies have closed down, affecting food supply. Automation can be used to manage supply chain interruption by making repetitive tasks, which will reduce supply management risks. Companies must learn how to solve supply management challenges for continuous production and company success.
References
Ketchen Jr, D. J., & Craighead, C. W. (2020). Research at the Intersection of Entrepreneurship, Supply Chain Management, and Strategic Management: Opportunities Highlighted by COVID-19. Journal of Management , 46 (8), 1330-1341.
