Businesses around the globe are experiencing ongoing supply chain disruptions caused by the pandemic. These interruptions are significant because disruptions, both expected and sudden, are often felt for months or years after they occur.
What is a Supply Chain?
A supply chain is a network of goods, services, individuals, and organizations that move products from a supplier to a consumer. A supply chain disruption is when there is a sudden change or disaster that impacts this process in a negative way. In essence, supply chains are a series of interconnected parts. When considering the manufacturing of complex goods, supply chains are often parsed into different tiers, the same way a pyramid would be constructed.
In 2020 when Covid-19 became a growing concern, the manufacturing sector around the world was impacted. Many manufacturers struggled to acquire necessary supplies and experienced dramatic labour shortages. Transportation interruptions also made it difficult to keep goods and services moving which is a trend that has persisted throughout 2021. Consumers today are having to wait longer for deliveries. In some cases, goods once readily available are now impossible to acquire.
Types of Supply Chain Disruptions
There are numerous factors that can cause supply chain disruptions including pandemics, natural disasters, product problems, cyber-attacks, and transportation interruptions.
Recommendations for Offsetting Supply Disruptions
Supply chain experts recommend building up inventories, diversifying suppliers, identifying backup suppliers, and creating emergency plans to help offset any possible supply chain issues that could impact your business.
Elaine Allan, BA, MBA
Technology and Business Blogger
Vancouver, BC, Canada