no longer of immediate concern but other problems still linger and pose the potential to cause long-term disturbances onboth a domestic and global level.
WHAT CURRENT CHALLENGES
FACE SUPPLY CHAINS?
The complex nature of modern supply chains makes itharder to rebound from the impacts of the pandemic. Issueswith one supplier can have a ripple effect that causes problems in several industries. It will take some time before thebehavior of the global supply chain returns to pre-pandemicnormalcy. Following are some of the most critical challengesfacing supply chains today.
Catching up with consumer demands is proving to be difficultin many markets and industries. Shortages lead to inflated priceswith many types of consumer goods. There can also be a lagtime of many months between orders being placed and filled,meaning some products will remain in short supply indefinitely.
The reliance of specific industries on a disjointed supply
The typical consumer’s biggest supply chain concern is whether their favorite clothing stores have the right size in stock. For companies who do business internationally, supply chain is much more of a challenge. Extended timelines necessary for ordering products farin advance require extensive planning and execution to assureconsumers have the products they want when they want them.
COVID- 19 was perhaps the key indicator for severelyimpacted supply chains. Stores and restaurants shut downworldwide; orders stopped for new products; shipping schedules went haywire; and containers were left at ports wherethey were not needed. Air cargo shipments dramatically increased along with the cost of shipping, local food suppliersshut down their production facilities, and stores stopped ordering inventory altogether.
THE IMPACT OF COVID- 19 ON GLOBAL
COVID- 19 has affected virtually every aspect of daily life
for most of the world. Dramatic changes in how we work,
• An abrupt reduction in the demands of shoppers for a
wide range of goods and an associated decrease in factory
• Reduced orders from factories and suppliers.
• Shortages of standard consumer goods such as hand sanitizers, paper products and cleaning supplies.
• Limitations on the quantity of certain products consumerscould purchase.
• A change from in-store shopping to online shoppingworldwide.
• Uncertainty in our economic future, resulting in companies reluctant to order supplies and manufacturers putting ahalt on production.
Disruption to interconnected components of the globalsupply chain also brought on many COVID- 19 travel andcommerce restrictions. Some of these impacts, such as thelack of paper goods in the U.S., have been addressed and are
SUPPLY CHAIN MANAGEMENT
The Pandemic’s Toll on the
GLOBAL SUPPLY CHAIN
Near-shoring and automation are two of the strategies companies are adoptingto rebound from the impact of the pandemic on their supply chains.
By William Edwards