{"id":394,"date":"2021-02-26T11:52:18","date_gmt":"2021-02-26T09:52:18","guid":{"rendered":"https:\/\/blogs.hanken.fi\/humlog\/?p=394"},"modified":"2023-12-08T18:41:05","modified_gmt":"2023-12-08T16:41:05","slug":"your-face-mask-impacts-the-global-supply-chains","status":"publish","type":"post","link":"https:\/\/blogs.hanken.fi\/humlog\/2021\/02\/26\/your-face-mask-impacts-the-global-supply-chains\/","title":{"rendered":"Your face mask impacts the global supply chains"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">26.02.2021<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Dr.\u00a0Ioanna\u00a0Falagara\u00a0Sigala, Project Researcher at HUMLOG\u00a0Institute<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The Coronavirus Disease (Covid-19) pandemic has created a worldwide health&nbsp;crisis with an impact not only on peoples\u2019 lives but also on the global medical supply chain network.&nbsp;In&nbsp;our&nbsp;increasingly interconnected world, the protection of citizens and the delivery of the medical suppliers is a huge challenge.&nbsp;There is high connectivity between individual behaviour, political decisions and the delivery of the medical supplies needed to fight the pandemic.&nbsp;On&nbsp;one side, we have the behaviour&nbsp;of&nbsp;individuals&nbsp;that plays&nbsp;an important role&nbsp;in&nbsp;the spread of&nbsp;the pandemic.&nbsp;On&nbsp;the other side,&nbsp;we have political leaders&nbsp;who&nbsp;need&nbsp;to take measures (e.g.,&nbsp;impose movement restrictions, export bans) to limit the spread of the virus.&nbsp;Connecting the two, there is the supply chain network that&nbsp;aims&nbsp;to ensure the availability of medical supplies to the hospitals and&nbsp;the&nbsp;public&nbsp;in general.&nbsp;&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Thus,&nbsp;there is a complex&nbsp;and interconnected web&nbsp;of institutions and organisations that&nbsp;links&nbsp;regulations&nbsp;and&nbsp;funds&nbsp;with&nbsp;production, imports,&nbsp;exports,&nbsp;wholesale&nbsp;and retail&nbsp;to&nbsp;ensure&nbsp;that&nbsp;medical&nbsp;supplies&nbsp;are&nbsp;available to the end-patient.&nbsp;No&nbsp;country can meet the increased demand for&nbsp;much needed items, such as&nbsp;face masks alone,&nbsp;each and every&nbsp;one of us has a&nbsp;role to play in this pandemic and&nbsp;consequently&nbsp;a&nbsp;responsibility. This&nbsp;impacts&nbsp;the supply chain.&nbsp;&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The&nbsp;willingness&nbsp;and readiness of people&nbsp;to wear face masks not only has an impact&nbsp;on&nbsp;the&nbsp;spread&nbsp;of&nbsp;the virus,&nbsp;but on the global supply chain of these items&nbsp;as well. If all people wear face masks,&nbsp;the demand for face masks grows. If it grows&nbsp;exorbitantly&nbsp;and suddenly, it cannot be met by the existing&nbsp;production&nbsp;capacity.&nbsp;If people do not wear&nbsp;a&nbsp;face mask,&nbsp;the&nbsp;virus spreads&nbsp;even more leading to even higher&nbsp;demand&nbsp;for&nbsp;face masks.&nbsp;&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">During the first wave of Covid-19, the demand shocks of medical supplies,\u00a0especially of personal protective equipment\u00a0(like face masks)\u00a0caused extreme bullwhip effects. The\u00a0unpredictable and unstable manufacturing environment,\u00a0where suppliers struggle to predict demand\u00a0as a result of\u00a0panic-driven\u00a0consumer\u00a0behavior,\u00a0caused price fluctuations and shortages.\u00a0This\u00a0led many\u00a0EU\u00a0(and other)\u00a0countries to forget the fundamental principle of free movements of\u00a0goods\u00a0and\u00a0to\u00a0impose export bans for essential medical supplies,\u00a0such as face masks, ventilators, hand sanitizers\u00a0and gloves. In addition, the lockdown that many countries imposed had an impact on the\u00a0free movement of people. As a result,\u00a0workforce\u00a0participating\u00a0in\u00a0the production of essential medical supplies\u00a0could no longer cross the borders. Airlines\u00a0reduced or\u00a0stopped passenger fights\u00a0leading to fewer\u00a0transportation options\u00a0for\u00a0medical supplies and\u00a0to\u00a0increased transportation costs.\u00a0On top of all that,\u00a0the import of sub-standard\u00a0face masks from China led\u00a0US and European authorities\u00a0to more quality control checks\u00a0resulting in\u00a0longer lead times\u00a0when\u00a0importing items.\u00a0\u00a0<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The&nbsp;Covid-19 pandemic&nbsp;demonstrated&nbsp;the need to increase the medical supply chain&nbsp;responsiveness.&nbsp;To better prepare for future pandemics, it is necessary to reshape medical supply chains and&nbsp;to&nbsp;develop&nbsp;chains&nbsp;that are more flexible,&nbsp;responsive&nbsp;and agile. In addition to standard supply chain&nbsp;responses,&nbsp;such as pre-positioning of medical supplies and multi sourcing strategies, there is a need for more coordination and&nbsp;cooperation&nbsp;between&nbsp;public authorities&nbsp;and&nbsp;private&nbsp;companies. In other words, there is a need&nbsp;to&nbsp;design&nbsp;policies and regulations that&nbsp;facilitate&nbsp;the&nbsp;production and distribution of medical supplies during emergencies.&nbsp;The&nbsp;private-public sector&nbsp;cooperation ought&nbsp;to ensure that&nbsp;the&nbsp;private sector can be ready to switch production lines&nbsp;in short notice,&nbsp;thus&nbsp;ensuring&nbsp;the availability of essential items.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For a better&nbsp;understanding of how individual&nbsp;behavior, governance, supply chains and social media are&nbsp;inter-connected and&nbsp;impact&nbsp;the response to Covid-19, follow the results of the EU-H2020&nbsp;funded&nbsp;(grant ID:&nbsp;101003606)&nbsp;<a href=\"https:\/\/www.heros-project.eu\/\" target=\"_blank\" rel=\"noreferrer noopener\">Health Emergency Response in Interconnected Systems<\/a>&nbsp;(HERoS)&nbsp;research&nbsp;project.&nbsp;&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Hanken School of Economics leads a consortium of\u00a0four\u00a0universities (Hanken School of Economics, Free University of Amsterdam, Delft University of Technology, The Open University-UK)\u00a0and\u00a0seven\u00a0other organizations (Nordic Healthcare Group, Space Research Centre of Polish Academy of Sciences, Squadron, Polish Center for International Aid, Italian Red Cross,\u00a0Project Hope, ARTTIC).\u00a0The overall\u00a0objective\u00a0of\u00a0HERoS\u00a0is to improve the effectiveness and efficiency of the response to the Covid-19 outbreak.\u00a0HERoS\u00a0creates and\u00a0provides\u00a0policies and guidelines for improved crisis governance, focusing on responders to public health emergencies, and their needs to make informed decisions.\u00a0By integrating governance, supply chain management,\u00a0information,\u00a0and epidemiological modelling from the bottom-up, we\u00a0provide\u00a0new insights into the behavioral and social dynamics of the Covid-19 epidemic.\u00a0The project results\u00a0will be translated into actionable recommendations for responders\u00a0at the\u00a0local,\u00a0national\u00a0and international\u00a0level.\u00a0\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"<p>26.02.2021 Dr.\u00a0Ioanna\u00a0Falagara\u00a0Sigala, Project Researcher at HUMLOG\u00a0Institute The Coronavirus Disease (Covid-19) pandemic has created a worldwide health&nbsp;crisis with an impact not only on peoples\u2019 lives but also on the global medical <a href=\"https:\/\/blogs.hanken.fi\/humlog\/2021\/02\/26\/your-face-mask-impacts-the-global-supply-chains\/\"> [&#8230;]<\/a><\/p>\n","protected":false},"author":13,"featured_media":395,"comment_status":"closed","ping_status":"open","sticky":true,"template":"","format":"standard","meta":{"footnotes":""},"categories":[43],"tags":[],"class_list":["post-394","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-projects"],"_links":{"self":[{"href":"https:\/\/blogs.hanken.fi\/humlog\/wp-json\/wp\/v2\/posts\/394","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blogs.hanken.fi\/humlog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blogs.hanken.fi\/humlog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blogs.hanken.fi\/humlog\/wp-json\/wp\/v2\/users\/13"}],"replies":[{"embeddable":true,"href":"https:\/\/blogs.hanken.fi\/humlog\/wp-json\/wp\/v2\/comments?post=394"}],"version-history":[{"count":2,"href":"https:\/\/blogs.hanken.fi\/humlog\/wp-json\/wp\/v2\/posts\/394\/revisions"}],"predecessor-version":[{"id":397,"href":"https:\/\/blogs.hanken.fi\/humlog\/wp-json\/wp\/v2\/posts\/394\/revisions\/397"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/blogs.hanken.fi\/humlog\/wp-json\/wp\/v2\/media\/395"}],"wp:attachment":[{"href":"https:\/\/blogs.hanken.fi\/humlog\/wp-json\/wp\/v2\/media?parent=394"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blogs.hanken.fi\/humlog\/wp-json\/wp\/v2\/categories?post=394"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blogs.hanken.fi\/humlog\/wp-json\/wp\/v2\/tags?post=394"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}