Prof. Benny Mantin et al.: Supply Chain and Logistics in Luxembourg – An overview, the effects of the pandemic and an outlook into the future 22/05/2020

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Principal authors:  Benny Mantin, Joachim Arts, Francesco Ferrero | Work Package 13 Supply Chains and Logistics Research Luxembourg COVID-19 Task Force
8 May 2020

Supply Chain and Logistics in Luxembourg: An overview, the effects of the pandemic, and an outlook into the future

EXECUTIVE SUMMARY: “Flows of goods and services are at the core of how economic prosperity is created. During the COVID-19 pandemic, these flows have been dramatically impacted and altered, while necessitating new ones. The current crisis exhibits features that makes it an unprecedented setting:

  • Disruption is global. While initially it was limited to China, it quickly spread elsewhere and now encompasses the entire globe.
  • Both supply and demand are affected. This bears consequences for the resumption plans (a double Bullwhip effect1).
  • Both internal and external flows are restricted. Due to the restrictions imposed, companies face challenges to conduct their transformation processes, while transportation and logistics systems are also severely impacted.

Work Package 13 Supply Chains and logistics, henceforth WP13, operates along two pillars: assessing the impact on the different providers in the logistics sector and analysing supply chains that support various sectors of the economy in Luxembourg. This report provides a broad view of supply chains at large and appraises the potential need for enhancing resilience following the current pandemic with an emphasis on the Luxembourgish perspective.

WP13 has carried out a “logistics networks disruption” survey. Key observations from the survey include:

  • Most participants experience a sectorial shift in demand with a strong decrease in services for the automotive and steel industry as well as fashion and retail, and an increase in demand for e-commerce, healthcare and pharmaceuticals.
  • The impact on operations is manifested through lower number of shipments, lower utilization of vehicles and higher operating costs.
  • Market uncertainty is on the top of participants’ minds. Larger firms (with 50+ employees) are 2.5 times more likely than smaller firms to have prepared a business resumption plan. […]”

Continue reading and download the 48-page report, including guiding principles for decision makers, here.

About Work Package 13 Supply Chains and Logistics: The COVID-19 Task Force has been set up in order to offer the health system and the Government the combined expertise available within the Luxembourg public research sector (LIH, LISER, LIST, LNS, Luxinnovation, University and FNR, under the coordination of the Ministry of Higher Education and Research).

The mission of the task force is to:

  • Coordinate the provision of support from the national research community to healthcare providers and the government in order to contain the current COVID-19 pandemic.
  • Help identify and centralise a variety of priority activities, leveraging on the crosssectoral expertise in biology, medicine, mathematics, computer science, epidemiology, economics and social science.
  • Be the point of contact between the national research ecosystem, the clinical community and the authorities to foster common projects.

There are 13 work packages in this task force. WP13 is dedicated to logistics and supply chains. This work package operates along two pillars: 2 Assessment of the impact on the different logistics providers in Luxembourg. In the course of this, input from an online survey will feed data to a dashboard that will provide information on the changing logistics environment. Analysis of supply chains that support various sectors of the economy in Luxembourg. A report will feature various supply chain considerations and will be a valuable input for the exit strategy (WP00). An online survey is envisioned as well.

Prof. Benny Mantin

Benny Mantin is professor and the Director of the Luxembourg Centre of Logistics and Supply Chain Management (LCL), at the University of Luxembourg, which is a member of the MIT’s SCALE network. He joined the University of Luxembourg following a tenure of 9 years at the University of Waterloo, where he still holds a visiting position.

His research covers diverse aspects of supply chain management, dynamic pricing and revenue management, as well as transportation economics. Mantin has been engaged in consulting on air-transport policies and has been involved in numerous projects where he led students to improve processes at different firms.

Visit also: http://mantin-in-the-air.com/

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