An analysis on the impact of covid-19 pandemic on logistical performance of an organisation. A case study of Navidale textiles. · Electronic Theses and Dissertations

Author

Sigauke,Jabulani

Title

An analysis on the impact of covid-19 pandemic on logistical performance of an organisation. A case study of Navidale textiles.

Abstract

A Force Majeure disguised by Covid 19 mask, stroke the global business environment leading to logistics performances problems, which were last seen during the World War II period. This gave the researcher the motive to analyse the impact of Covid 19 pandemic on logistical performances using a case study of Navidale Textile Private Limited. The research seek to achieve objectives of the study which were as follows; to highlight the challenges of logistics performance management caused by Covid 19 at Navidale Textile; to explore how Covid-19 impacts logistics performance at Navidale Textile; and to recommend best logistics performance management strategies that curb negative impact of Covid 19 at Navidale Textile. The population was 187 and using Yamane formula to determine 127 as the sample size. Due to Covid 19 regulations of social distance interviews and questionnaires were send and replied through the email. Reliability and validity test was done on the questionnaire using the Cronbach Alpha coefficient and Product Moment Pearson Correlation respectively computing with SPSS software. A SWOT analysis with a PESTLE scrutiny on the Opportunities and Threats was utilised to surface the magnitude of logistical gaps opened by the emerging of Covid 19 pandemic. The researcher used mean, mode, variance, skewness and standard deviation to access the extent which Covid 19 influenced the logistics performance at Navidale. The results showed that Navidale was impacted negatively to a greater level and positively to a lesser extent. The positives were Navidale was allowed to operate during the lockdown period while other firms were closed. Secondly, there was an opening of indispensable ready available protective clothing market for providing things like face masks. However, negative impacts or challenges of the study which were found were delays in logistics due to police road blocks, verifications and inspections. Moreover there was an increase in orders being cancelled because of lockdowns, trade restrictions and embargos imposed world over. More Emergency logistics procedures as compared to previous periods were also conducted due to Covid 19. As if it is not enough, more logistics cost due to Covid 19 which includes; the cost on obtaining operating licence which is a requirement when crossing police road blocks when conducting both inbound or out bound logistics; reverse logistics cost due to payment of environmental disposal penalty fee as customers are wrongly disposing their disposable masks and packaging materials with Navidale brand name; and then reordering costs since international suppliers are failing to supply, were observed. More so, findings surfaced that Navidale was having frequent stock outs, longer order cycle time, stoppages in production and received the highest record of complaints from customers for late deliveries, especially on their protective clothing line. Furthermore, school uniform demand dropped when schools where closed due to lockdown. Therefore, Navidale felt the bullwhip effect of holding inventory and production logistics problems also stroke. Recommendation were; there is need for Navidale to ramp up alterative products, suppliers and additional supply options; there is need to outsource inbound and out bound logistics while the company concentrate on production and reverse logistic; there is need for logistic capacity to reduce replenishment lead-times; and last but not least Navidale to have a proactive approach on logistics while enhancing its demand forecasting technics so as to cater for Force Majeure and hence, avoid bullwhip impact and any other logistic challenge

Date

June 2022

Publisher

BUSE

Keywords

global business environment, Covid 19 pandemic

Supervisor

NIL