What's Going On With Global Supply Chains?
The rapid spread of COVID-19 in 2020 prompted shutdowns of industries around the world, and, while most consumers were in lockdown, lower demand for certain products significantly reduced the need for production. Thanks to the rollout of coronavirus vaccines, the global economy is slowly returning to normal. But supply chain disruptions persist.
Where global supply chains currently stand
As lockdowns have lifted, demand for products have skyrocketed. But supply chains that were disrupted due to the pandemic have had a challenging time bouncing back. Some items are primarily manufactured in certain parts of the world, such as the chip shortages that continue to affect the auto industry. Meanwhile, freight delays around the globe have caused long wait times for even the most basic items. Many manufacturers and distributors cannot produce or supply as much as they did pre-pandemic, for reasons such as worker shortages or lack of key materials. Many were not operationally prepared for the rapid increase in demand in such a short amount of time, leading to enormous backlogs and delays in shipments around the world.
Situation expected to get worse before it gets better
The pandemic has highlighted how easily global supply chains can be destabilized. Amid higher consumer demand for goods that were previously in short supply as a result of the pandemic, freight rates for merchandise coming from China to the United States and Europe have grown significantly. Compounding the issue, a shortage of truck drivers has exacerbated the problem of getting goods to their final destinations, and has led to higher prices when those goods do finally reach the shelves.
How supply chain mapping can predict and prevent future disruptions
Every company should have a comprehensive supply chain map, so that global disruptions can quickly be traced to revenue impacts. Through the process of supply chain mapping, companies can also collect key data used in business continuity planning (BCP), such as Lead Time and Supplier Concentration. Finally, real-time time traceability ensures that you can quickly find out which shipments are at risk and get in touch with the appropriate customers and suppliers to plan alternative deliveries. The pandemic may have been unpredictable, but supply chain mapping can help companies prepare for the unexpected and bounce back faster.
Find out more
Sourcemap offers an all-inclusive supply chain continuity solution built on the world's leading supply chain mapping software. Get in touch to find out more.