How To Respond To Global Supply Chain Disruption
The pandemic sent shockwaves through global supply chains, which most businesses spent much of 2021 playing catch up. According to research, 42% of supply chain leaders are struggling to balance profitability with sustainability, speed and innovation.
What is Causing Today’s Global Supply Chain Issues?
1. The Pandemic
Many manufacturers shut down or reduced operations, and restarting operations has proven to be more difficult than expected. China’s rapid shutdown of factories and shipping centers has created a domino effect on manufacturers and shippers in Malaysia, Indonesia, and Vietnam.
2. Increased Demand: the ‘bullwhip’ effect
Consumer spending has been increasing since the pandemic started. Meanwhile, manufacturers have been cutting costs to face the pandemic; therefore, trimming inventories to match demand.
3. Manpower shortage
Manufacturers have encountered an increase in labor shortage. Today, similar bottlenecks plague the entire supply chain, including port workers, warehouse workers, truck drivers, railroad workers, and maintenance professionals.
How To Respond To Supply Chain Disruption?
By Genie Ng • Apr 29, 2022