Supply Chain Weaknesses Made Apparent by COVID-19

The world was not prepared for a global pandemic that seemed to spread like wildfire. In the United States, businesses took a hit because of issues within the supply chain, which is essentially the process of making and selling commercial products.

Why Is Supply Chain Management So Important?

Supply chain management is important because companies and businesses depend on it to meet product demand. In a world where people expect quick turnaround times, businesses must keep up so they can earn and sustain customer loyalty.

Businesses that need supplies to do their jobs at all depend on supply chain management as well. Whether you run a jewelry business or a landscaping company, you need an optimized supply chain that’ll get your products to you in a timely manner.

Here are a few weaknesses within the supply chain that were made apparent by COVID-19.

Shortages and Lack of Preparedness

The pandemic caused issues within the supply chain. By April 2020, businesses were suddenly closed, and workers in factories within the United States and beyond couldn’t go to work anymore. In fact, according to EY, 47% of all companies stated that their workforce was disrupted by the pandemic.

Factory workers were deemed essential workers and had to be tested for coronavirus often as well as wear personal protective equipment (PPE). However, another issue stood in the way: there wasn’t enough PPE for workers everywhere. This shortage in equipment caused a shortage in workers and the number of products being made, which then affected businesses throughout the country and the world. This lack of preparedness shows us now that supply chain management needs to be well-equipped for future disruptions.

Visibility Issues

Basware explains it best: “At its core, supply chain visibility is about knowing where inventory is at a particular time, tracking their movement and delivery, and understanding thoroughly who you are doing business with. It’s a concept we call ‘visible commerce.’”

Essentially, the pandemic showed leaders in supply chain management that the human side of trade is essential. Basware further points out that a lack of visibility in this industry puts the entire supply chain at risk when disruptions, interruptions, bad data, and wrong suppliers get in the mix. Therefore, the pandemic, being the disruption, showed us that the industry must do better in preparing for disasters, tracking supply networks, recording and storing data, and choosing who to do business with.

Lack of Collaboration

Forbes points out that “relationships between buyers and suppliers can increase resiliency, generate new value, and effectively decrease cost.” The COVID-19 pandemic made it clear that these relationships were broken. In order for the supply chain to work effectively and efficiently, technology may be a big answer.

The pandemic showed us that technology can become more integrated in business functions so that workers can social distance and stay healthy and safe. Additionally, many businesses have started programs that help connect small and big businesses so they can establish better working partnerships. Company culture is also important here. Businesses and companies throughout the United States must be willing to work together so that both parties can prosper.

To Conclude

The COVID-19 pandemic proved that the supply chain could use some optimization. In order for businesses and companies throughout the world to succeed, everyone involved needs to be better prepared, better organized, think more creatively and strategically, and be willing to work with one another to meet customer and product demands.

About the Author:

This article was written by the Outreach Team at Surplus Record, a leading independent business directory of surplus, new and used machine tools, machinery and industrial equipment in the U.S.