The pandemic has left all aspects of life disrupted. This has also impacted business operations across all departments. While working from home was one way to mitigate the adverse impacts, there was another feature of business operations that could not adjust to the shock immediately. That was the disruptions created in supply chains due to sudden lockdowns. As transportation of goods and services came to a standstill, many issues followed.
Read ahead to find out what supply chain issues this has brought about in the post pandemic world.
Supply Chain Issues in the Post Pandemic World
Need to diversify to absorb disruptions in demand and supply
With the pandemic, a significant shift in consumption patterns was noticed. Demand for essential goods shot up. Thus, placing a heavy burden on supply chains to accommodate the growing demand for essential items. Businesses are now realizing this as well and have diversified their operations. Most have brought their production activities nearer to home. Thus, supply chains are now getting shorter, allowing them to access markets that require the minimum amount of distance covered.
Restructuring global supply chains
However, bringing supply chains closer to home may seem to be easier said than done. Not all organizations and economies can afford to do this. This is because dismantling the global network and restructuring it would cause heavy economic and financial shocks to countries – most of which are already struggling to get back on track post lockdowns. Moreover, competitive advantage is what has helped most survive in the highly globalized world, and a dismantling of this structure would put into question the nature of supply chain management altogether.
The Bottom Line
With a glimpse into the impact of the pandemic on supply chain and logistics, the need for finding sustainable and streamlined processes for conducting business operations has increased. If you own a business or have started one that relies heavily on a large supply chain network, then this article may have given you a heads up on what you need to do to be prepared for such unprecedented events in the future.
The solution is quite simple – keeping supply chains closer to home is the way to go, if feasible that is. Those who have had this characteristic in their business operations were able to absorb the shocks from the lockdowns that came with the onset of the pandemic. This is what you want to ensure for your business going forward. To get started, re-evaluate your business prospects and opportunities for growth. From then on, examine and analyze which course of action would be best for you in the long term.
