Has COVID-19 Permanently Affected Supply Chains?
When the COVID-19 pandemic began to spread, it disrupted supply chains around the world.
A survey of 715 supply chain professionals by Jabil, a Florida-based manufacturing service company, found the pandemic disrupted 78% of supply chains — more than any other event in the last decade!
Though no one can truly predict the exact consequences the pandemic, organizations might begin to see impacts across the supply chain, including:
- MATERIALS: supply shortages of materials or finished goods coming from or routed through ports in impacted areas
- LABOR: white-collar and blue-collar labor may not be available due to quarantine guidelines or illness
- LOGISTICS: established ports and supply networks may experience limitations in capacity and availability
- CONSUMERS: consumers may be more cautious in their purchasing habits due to fears about being in public and potential exposure to the virus and may turn to online sales, challenging logistics networks
Changing Consumer Behavior
With the extreme changes everyone is experiencing post COVID-19, consumer behavior is also expected to change. Industry experts are expecting overall spending to decrease as consumer purchasing power reduces on account of the economic downturn and unemployment.
Challenges Facing the Logistics Industry
The logistics industry has always helped global trade and acted as a fundamental lever of global commerce and economy. However, with the a variety of restrictions in effect across the globe, the logistics industry on the whole is experiencing very turbulent times.
The Way Forward
While the industry is slowly recovering from the initial shift, companies will need to adapt in order to effectively sustain growth and ensure that we come out of this crisis successfully.
The ramifications of a pandemic event are hard to predict. But with careful planning you can mitigate your risk. Also, aligning with strong companies like RMX Global can better prepare you for what may lie ahead.