Covid19 pandemic was a tough time for businesses. It affected lives and wealth of people and big companies. As a result, there is a change in the work culture after the pandemic.
There are various issues faced by the companies during the pandemic which changed everything. Lets talk about them in detail.
Labour shortage - Due to the enforcement of a 21 day lockdown on March 25, 2020 and the numerous extensions to the lockdown, the labour forces in parts of India started migrating to their home villages. The shutdown of industries across the country and reduced workforce capacity, as under the lockdown guidelines, left the daily wage labourers and workers unemployed. As per the Chairperson of AMUL, most of the milk processing plants under the company were working with half capacity of workers. Stringent restrictions and repercussions created havoc in the lives of the labourers.
Transportation and Logistic Issues - Logistics in various companies is hugely dependent on road networks. Various states had imposed strict border policing to monitor the entry and exit of vehicles in their respective states. A company like AMUL works on a highly complex supply chain where the milk is procured from one part and transported to other states within a short span. Border control was not much an issue while transporting containers full of milk. Inspections at check posts included procedures that required time and holding containers after delivery created delay in logistics. According to an article published in OECD, (Food Supply Chains and COVID-19: Impacts and Policy Lessons, 2020), transport and logistics delays have severely affected the supply and issues in perishable food such as milk.
Discrepancy in Supply Chain - Tactics for containing and controlling the epidemic have caused numerous supply chains to collapse and malfunction. It has in-turn lead to some industries in various sectors to pause production and supply. Agricultural sector, which produces rice, bran, and corn, was one such industry. Farmers were finding it difficult to feed their cattle to guarantee that milk production continues now that maize, rice, and bran are no longer readily available due to the shortage in stocks and disturbance in supply chain. These factors indicated a decline in the milk production due to a lack of cow fodder. Some farm sectors often rely on seasonal labour in varying quantities.
Influence of unemployment - Unemployment was a major problem created by the COVID-19 pandemic. Laid down of employees in all sectors was a common phenomenon. Many established food companies had to shut down offices to cut their costs and survive the pandemic.
