UNDERSTANDING THE SUPPLY – DEMAND DISRUPTION DURING THE COVID-19 PANDEMIC
With the outbreak of Corona Virus in 2019 December, the world in 2020 seemed surreal whilst lockdown were mandated and almost the entire world right now is staying in and trying to contain the Covid-19 pandemic spread. As we speak, over 3 million positive cases and over 300,000 deaths have been reported around the world. It is no doubt that almost every company is currently experiencing supply demand disruptions due to the broken supply chains effecting global value chains.
Due to lockdowns led by Covid-19 suppliers have ceased production and logistics seem stand still as providers can no longer transport goods as seamlessly, particularly across boarders due to state constraints on imports in many countries across the world. Naturally global trade and supply chains are going through unusual shocks from both the supply and demand side.
On the other hand, industries such as food and consumer goods manufacturers along with their retail counterparts are dealing with unprecedented high demands across consumer channels, while “non-essential” companies are being plagued with unexpected downfalls.
Moreover, looking back at the first to second month into Covid-19 taking the big hit, we saw the tremendous and overwhelming demand for food and other goods on the shelf. This portraits how a small increase in demand at the consumer level may lead to a large increase in production at a food manufacturer or their packaging suppliers. This simply means that there was lack of visibility into the nature of the demand increase . Hence, this will require vigilance moving forward to be sure that visibility into true supply priorities is not lost as pipelines are refilled.
Nevertheless, at the end game, be it buyers or suppliers; they are
facing and will have to face tremendous challenges in keeping goods
and services intact at this time of global lockdowns. Countries,
especially developing countries are carrying the direct consequences
of supply chain disruptions.
Therefore in both cases future plans need to be set in place to
strategically overcome these risks during turbulent times. In such
physically, mentally and economically challenging times, we ought to
do the right thing and take necessary measures not only to save our
businesses and companies but also to be considerate in doing so
about our community and its health. Think strategically and take
decisive as well as early measures to make your supply chains more
-Carol R. Taylor-
published on 2nd May 2020