Resilient supply chain operations following major disturbances: lessons from COVID-19 cases

Abstract

Resilience has become a major concern to the global supply chain after the COVID-19 pandemic. Although the pandemic is hopefully tailing off, this study remains essential for future preparedness against major disruptions in global supply chain operations. This paper extends the Public-Health Corridors (PHC) concept from international travel coordination to global supply chain operations, with the underlying goals of reopening borders and alleviating social and financial burdens. Very little has been learnt from and very few guidelines are provided for developing PHC that recovers supply chain operations. This research fills this research gap by providing the architecture of PHC. Game-theoretical models with a strategic government-private-public-partnerships (G3P) mechanism are proposed to demonstrate how effective PHC can establish a new norm for social and economic activities under COVID-19 with minimal additional burdens. It offers theoretical evidence for possible approaches that facilitate effective stakeholder collaboration in launching PHC. Findings show that the implementation of basic PHC can resume supply chain operations through appropriate PHC measures and investments, while a well-designed G3P mechanism significantly bridges the gap between new norms and pre-pandemic conditions. A targeted subsidy programme is crucial for profitability, and well-crafted contracts are essential for achieving Pareto improvement and reducing required subsidies.