Executive summary
The concepts of supply chains and logistics are not new and have existed for a long time; however, they are differently utilized in various companies. Dyckhoff, Lackes & Reese (2013), in their study, defines logistics as all the processes that provide linkage to all supply chain units into more integrated operations. Supply chain management and logistics play significant roles in ensuring the link of supply chain frameworks and departments such as manufacturing, procuring, sales, and distributions. The roles of Supply chain management and logistics in a firm may lead to cost advantage, in which the concept tries to lower the cost of production while having the largest sales volume. However, it is worth noting that blind pursuit of economies of scale to realize maximum profits may not assure improved profitability, and thus caution is essential. Moreover, Logistics and supply chain management ensures the effective movement of goods and products from the production source to the end-users and back to the source in a more organized manner that minimizes loss. Besides, product safety is also assured during the transit of the products under effective supply chain management.
The impacts of COVID-19 on the global and pan European logistic and supply chain management systems have posed risks to Porsche AG as well as opportunities for improvements. The challenges include reducing the sales volume, especially to major consumer countries of Porsche products such as China that experienced lock down after the COVID-19 broke out. However, this has come along with the opportunity to come up with geographic manufacturing and supply stations in such countries to mitigate similar instances in the future. As a result, it can be recommended that the company adopt globalization measures and low-cost production for better market competition with other products.
Conclusion
The impacts of COVID-19 on the economy and company performance have revealed some loopholes, strengths, and opportunities for different companies. Through such risks and chances, the affected companies can reshape their supply chain and logistic systems to fit the dynamic trends and minimize the crisis’s effects. Similarly, Porsche AG is one of the car manufacturing firms that have been affected by the pandemic. To contain such occurrence in the future, the company should move towards sustainable globalization can adopt the low-cost production of diversified car models to meet the needs of both middle and high-class individuals. With such properly implemented, the company will effectively compete in the global market with other brands