Consequences on Supply Chain Performance in Times of Scarcity During a COVID-19 Pandemic: A Case Study in an Automotive Industry

This work aims to present the elements related to production and logistics that companies have used in the last four years and that can lead managers to a correct decision in times of uncertainty based on the literature review. During the pandemic caused by COVID-19, industrial companies in the automotive sector had to adapt to the sharp drop in demand, varying negatively by up to 40% from March to November 2020. As of December 2020, demand increased again, recovering the fall from the pandemic’s beginning. Thus, a supply chain did not have enough time to recover and meet that speed. Even with international air freight, there is still a halt in automaker’s production lines in the automotive sector. Illustrating that context, we studied a case in a company that operates in Brazil, which produces automotive components for a manufacturer of heavy cargo and passenger vehicles. The company was impacted by the COVID-19 pandemic due to its low level, heightened by its suppliers’ delays. The results indicated the need for the company to be prepared for the increase in costs and the search for strategies that minimize the negative impacts still caused by the pandemic context.