Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/221740
Authors: 
Helmold, Marc
Einmahl, Matthias
Rassmann, Klaus Joachim
Carvalho, Luciano N.
Year of Publication: 
2020
Series/Report no.: 
IUBH Discussion Papers - Transport & Logistik 4/2020
Abstract: 
The COVID-19 crisis has identified several weaknesses and shortcomings of global supply chain networks. Due to the rapidly increasing demand of protective healthcare equipment, i.e. goggles, masks or equipment, it is visible that global supply chains have been significantly challenged. Furthermore, countries had to compete for available products, also leading to drastic price rises. The German government had to ask Multinational Companies (MNC) to procure healthcare equipment, as government procurement authorities were not experienced in dealing with global supply chains (Petersen, 2020). Moreover, even though machines for making masks and healthcare equipment are manufactured in Germany, there was no domestic supply. Under pressure to overcome the masks shortage in Germany, the government has promised state subsidies covering 30% of investment costs of companies venturing to launch fabric production. The funding will be capped at €10 million ($10.9 million), but includes a purchase guarantee from the government. The situation displayed how fragile and disruptive global supply chains can be in crisis situations. Moreover, the case shows the dependency on imports from China and other countries for pharmaceuticals or medical equipment.
Subjects: 
Public Procurement
Supply Chain Management (SCM)
Procurement Strategy
Public Sourcing
JEL: 
L91
L98
R41
R48
Document Type: 
Working Paper

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