Deloitte report I The dedicated health care professionals and highly functional pharma industry seem to be the only ray of hope for humanity to curb this perilous health crisis of COVID-19. The medical and research reports are very essential and serve as the authentic source for providing accurate information about the Virus and its impacts on different parts of the pharma industry. Owing to this a similar report was published by Deloitte which highlights the long-term and short-term impacts of COVID-19 on the Chinese health care industry. The results for this report could help other companies proactively deal with this outbreak and strengthen their health care response towards this outbreak.
The Deloitte report was done with 104 respondents. It was done to assess the efforts to mitigate the impact of COVID-19 by the companies. An interesting array of information was derived resulting in how the Chinese Health care industry is expecting to deal with the worst health care crisis of the century in the future. The first and foremost policy implemented by the majority of the companies was arranging flexible work opportunities for the employees. The companies also acted responsibly by tracking the database for employees’ travels and locations. One of the common responses to manage the crisis firsthand was by forming a crisis management team for faster and efficient decision making in the time of crisis. However, the health tracking system was observed to be more vigilant and efficient by large companies as compared to the smaller ones.
Further, upon the question of business-oriented challenges, a high majority of 76% reported that the disruption of marketing and sales was a major challenge faced by the industry because of the logistic and outreaching restrictions to health care centers and hospitals. the adjustment of the market within the emerging COVID-19 frameworks has also caused considerable neglect to the matters irrelevant to the crisis like R&D clinical trials. Small companies were being more concerned over their employees’ productivity during the crisis while foreign companies were more apprehensive of the resumption of marketing and sales.
The most significant company area that was largely affected by the COVID-19 upheaval was supply chain management. The Supply network was disrupted hugely by the travel and logistic bans in the country restricting the supply to certain provinces. Moreover, procuring raw materials and inventory management also has a negative impact on the companies outreach during the crisis according to the respondents. Large scale companies reported that their business channels were majorly disrupted while the small companies were more focused on the effects of this pandemic on their profitability.
To mitigate the short-term impact on their businesses, the common course of action taken by most companies was the realization of the gap between the authorities and manufacturers. Hence the majority of the companies responded to aim strengthening their collaboration between the government and hospitals to ease the burdened networks because of the supply and demand crisis. Moreover, a significant number also emphasized to strengthen supply chain management and observing the need for social distancing they were more inclined towards investing more in online businesses by speeding up the digital transformational process in the marketing and sales sector realizing the supply and demand shock that the companies suffered during the crisis. However, this trend was more frequently observed in the Larger companies for digitalization as a future strategy as compared to the smaller Health care companies.
Further, the respondents were also asked about the suggestions for the upcoming five-year plan. When asked about the strategies to involve in the coming five-year plan for the company after going through this debilitating crisis, mostly reported that health care education and preventive measures to the population at large was most critical to the health care industry. They also opted to nominate the innovation in health care service and R&D resources to adjust to curbing the existing Pandemic and upcoming infections.
The crisis impacting the business revenue was responded in 20% of respondents anticipating a rise in sales after the crisis and the other 20% expecting it to drop by the next year. While the majority of them were uncertain as to what impact it would have on the sales and revenue of their companies after the crisis settlement in the norm.
Deloitte report was crucially important for the other companies operating in the areas where supply chain fiascos and disruption in industry matters are expected to occur because of the Coronavirus. As it has been evident that the Coronavirus pandemic has already hit 188 countries of the world with more than 300,000 cases (as of March 22) worldwide. It will affect the economic and social structures of the Pharma industries and its stakeholders. Understanding the new norms in this extremity under the experience of the companies that were hit by this pandemic would help develop a better plan of action that could be taken in these circumstances. The key takeaways could be that the Chinese industry has realized the importance of technological transformation in their health system. They are expected to develop new business approaches for targeting wider populations of Health care professionals, and hospitals by incorporating advanced technological options to reach out to Doctors and pharmaceutical professionals. The inclination of the Pharma industry towards online distribution models is also expected as the virus sustains over a longer period. Moreover, Health care education and preventive efforts are also likely to be emphasized by the companies collaborating with the government owing to the mitigate COVID-19 spread. The R&D clinical trials in China are also expected to be funded and resources largely based on the existing demanding situation for the crisis which leaves an opportunity for the local and foreign firms for the resources management of their R&D endeavors. Health care professionals and Service providers will also be considered critical in devising new strategies to deal with a similar crisis.
The crisis that befell the Pharma industry is likely to shake the Pharma Company to its core. Allowing the industry for devising reparative efforts to survive in the new chaotic norm of COVID-19. The adaptation of the pharma industry in the wake for this pandemic is very crucial to fight this virus and fulfill its purpose of protecting the health of millions.