The Way Forward
Though no one can truly predict the exact consequences the pandemic, organizations might begin to see impacts across the supply chain, including materials, labor, and logistics.
READ MORE about how COVID-19 has affected supply chains.
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.
Simultaneous relaunch of production across the world will lead to an exponential spike in requirements of materials which can lead to a breakdown in the supply chain system.
Measures need to be taken to help avoid overwhelming the system at the start. Considering how governments across the world are planning a phased removal of lockdowns, a similar approach should be taken for the restoration of supply chains.
Now more than ever, unprecedented circumstances should always be expected moving forwards. Logistic companies need to create contingency plans to handle a surge in shipment and be able to work together to avoid bottlenecks, delays, and increasing costs. When a company takes time out to come up with a Plan B, their inventory continues to grow while at the same time becomes more obsolete.
Not only are consumers expected to demand more local produce for the fear of contracting viruses from imported products, but governments have also placed border restrictions on the movement of goods between countries. As we enter the new normal, these restrictions are likely to remain in force for the foreseeable future. Because of this shift, the logistics and supply chain may need to consider moving away from long-haul contacts. READ MORE about how COVID-19 is changing consumer behavior.
The ramifications of a pandemic event are hard to predict. READ MORE about the challenges facing the logistics industry. 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.