Infographic covid-19 impact on the Liquor Industry

Infographic covid-19 impact on the Liquor Industry

An article by Zinhle Dube, Principal Director and CEO of Smukeliso - Smukeliso is a procurement & operations advisory and consulting firm providing procurement & supply chain transformation solutions for private and public sector clients.

Businesses rely on supply chains to survive. The flow of goods from the manufacturing lines all the way to the final consumer is dependent on the effectiveness and robustness of supply chain value chains.

When the COVID-19 pandemic hit our South African shores in March 2020, it was expected that businesses’ supply chains would be disrupted. Supply is the life of the business; it is the glue that holds business value chain together.

The South African government, empowered by section 27 of the Disaster Management Act (DMA), declared a national state of disaster in South Africa. This was followed by the announcement of the national lockdown on the 26th March 2020 to facilitate an urgent response to the rapid spread of Coronavirus and support our government prepare the health system for this unknown pandemic. As a result, industries not providing, ‘essential services’ were shut down.

My supply chain mind was intrigued by the responsiveness of a number of industries based on the call by government to support the fight against this unknown pandemic. We saw a lot of businesses repurpose their production lines in response to COVID-19 immediate needs by producing hand sanitizers and other PPE such as masks, ventilators and face shields. Supply chain was at the core of these innovative ideas.

I was challenged by some supply chain folks I met on Twitter to unpack the supply chain of the Liquor Industry a few days after the immediate-effect announcement was done. The focus of the challenge was more to create awareness of the value chains interconnectedness and paint a supply chain angle to the problem brought about by the alcohol ban.

I did some desktop research and consulted a few senior individuals at some of the leading liquor brands. I summarized the results of my analysis in the following infographic. As evident in this infographic, the alcohol ban does not only impact the Liquor Industry but so many other industries; from Agriculture, Mining, Packaging, Retail, Township Retail (Taverns), Logistics and many more.

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