Question

Malaysia’s Top Glove Corporation Berhad, the world’s largest glove maker, expects a product shortage as demand from Europe and the United States spikes because of the widening Covid-19 coronavirus outbreak is exceeding its capacity. The company has extended shipping times to cope with the almost double demand surge based on the company’s production capacity. Top Glove can produce 200 million natural and synthetic rubber gloves a day. The demand increased to 100 percent more, the company only can increase 20 percent of their production so there is a shortage of about 50 percent to 80 percent. The exceptional buying momentum could last another three months but orders are expected to remain strong for up to nine months even as demand from Asian markets has started to slow slightly. Top Glove said its supply chain is well-diversified and was optimistic it would not have issues sourcing materials in the next few weeks. Malaysia has approved some manufacturers in the essential goods sectors to continue operating under specific conditions during the nation’s lockdown that ends on 9 June 2020. As operation manager, you are responsible in logistical arrangement to ensure the sufficient supply of rubber gloves to global demand. Write an assignment of this case study to analyse the situation critically and discuss the following issues.

Conclude 3 impacts based on your opinion to overcome the issue faced by Top Gloves. Support your discussion with appropriate citation, evidence and reference. (30m)

Answer 1

This pandemic situation is not easy for an individual or a business entity. The demand for essential items like mask, gloves, sanitizers, vitamin tablets, food items are surging and the companies are trying hard to cope with the situation by appointing only limited number of employees to work for them. The whole situation is not easy. And the same is happening with the supply chain also. In the supply chain, it is difficult to cross the boundaries and meet the requirements there within the time frame given. The same manner the procurement of the raw materials is also not an easy task. So for mitigating the impact of the pandemic from Covid-19 on the supply chain, the following can be considered;

1. Redeveloping stating a supply chain management by following the protocol of the Covid-19 pandemic stated by the country’s Government and the WHO or any other international bodies.

2. For meeting the increasing requirements for the gloves arising from the pandemic situation, the company should also make an arrangement for increasing their operations and production activities the company should make two shifts of production so as to increase the production.

3. If the company cannot meet the capacity as the machine lacks the same, then the company can study the same and either lease or buy a new machine to meet the surging demand. If the requirement or demand is only for a limited period, then it would be practical to lease the machines for producing more.