The Corona pandemic has had a profound impact on worldwide commerce and adjusting to the new normal will be critical in your company’s market placement planning. The complexly of the intertwined nature of a global supply chain is sensitive to disruptions in any part of the network. Trauma in one area has a trickle-out affect through the entire network.
In this pandemic, manufacturers that rely on labor-intensive processes that require people to work closely together have been disrupted because of social distancing requirements. For example, produce that relies on spring harvest might be in short supply come summer due to labor shortages. For other manufacturers, perhaps it will not be labor or raw materials that are in short supply, but the ability to have their product delivered. For example, transportation routes are at risk of disruption if truck drivers are in short supply. It's difficult to predict exactly where disruptions will be felt the most. What seem to be minor disruptions in any area of the supply chain can have a material affect on the system down the line.
The Covid Affect Globally and at Home
Producers and distributers in the U.S. had been facing increased demand for consumer packaged goods such as food, beverages, and cleaning products due to panic buying and inflation concerns. But its not evident there is shortage in the food supply chain in most areas. We have the manufacturing, transportation, and storage capacity to deal with consumer packaged goods. In fact, it's not critical for people to be stocking up in their homes. Labor is an ongoing challenge but there is no fundamentally broken piece of the food supply chain. Just some pockets of disruptions for specific consumables.
Prescription drugs may be different since the supply chain is more global and relies on China and India. China is a key supplier of the raw materials for prescription drugs and India has become a major producer of generic drugs. The restrictions in China and the recent Corona variant surge in India may have an impact on the kinds of prescription drugs we see in this country and throughout the world. This degree of reliance comes at a cost. The chip shortage should be a wake up call for at least the automotive industry.
The coronavirus pandemic has buffeted manufacturers in most every sector. Companies serving industries that are thriving; technology, health care and home repair and remodeling, among others have experienced a sharp increase in demand, while those that manufacture components for underperformers such as aviation, energy and the automotive industry have languished. Meanwhile, almost all manufacturers have grappled with supply chain disruptions. Add to the cauldron of transportation challenges; equipment availability, rates and ever increasing and demanding final mile parameters.
As in many industries, manufacturers are increasingly aware that even when the pandemic ends, it will leave fundamental changes in its wake, such as greater automation and a focus on smaller, more local factories and DC’s. With this transformation comes opportunity.
The game plan focusing on leaner operations must include supply chain optimization. Maximum efficiency in the warehouse means little if your unsuccessful in getting your product delivered timely or raw materials received in concert with manufacturing. The experience of a seasoned 3PL will be crucial in designing supply chain protocol in the coming decades. Look to Land Link Traffic Systems for expert guidance.
What Can Manufacturers do to Plan For the New Landscape
As we move ahead in a changed landscape, manufacturers must adapt to multiple transformations, often by changing processes and practices that they had grown accustomed to. Amid the explosion in online transactions, consumers are demanding faster deliveries and greater choices than ever before stressing inventories, customer service and transportation. Satisfying those demands will require manufacturers to adapt quickly, whether by innovating with new products, modifying existing ones or looking for 3rd party assistance. There indeed seems to be a renaissance of sorts going on in the logistics business particularly in the final mile delivery. We can help you prepare for it.
Contact us @ www.Land-Link.com to explore options for your organization.
Stay Safe Everyone.
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