Since the beginning of the coronavirus outbreak, the regular life routine was diversely affected globally. People who took personal responsibility to try and curb its spreading trends and governments also implemented measures to protect its citizens. However, most states did not stop ceasing movements in and out of their borders but also within their borders. Businesses were greatly affected since people took cover by quarantining themselves in their houses to avoid conducting the virus. As a result, most companies also decided to shut their doors to cover their workers or due to orders given by the executive leadership of their states. The supply chain of most businesses come to a standstill due to this, and for those whose supplies such as foodstuffs were still running, it was not steady as before. But besides the fear and tension surrounding the pandemic, people still had to earn their daily bread. In our article today, we will discuss the four major post-pandemic supply chains that emerged during this time.
Shift to online trends
Since the emergence of the Covid-19 pandemic, most people across the globe have decided to go for online business, unlike before. People still had to sell out their commodities to earn a living and sustain the harsh conditions of the Covid-19 pandemic. As a result, people saw online platforms as a solution to their problem of not exposing themselves to the virus and selling out stock in hand. A robust online business trend was created globally; people are now placing orders on different goods and services they wish to get from their comfort zone and get either right where they are. Various inventories come up to since people had to find a solution to keep their commodities moving. It was a challenging time especially to those who deals with perishable goods since most of their goods could not stay for long without getting to the consumers. The online trends at least tried to rescue some situations to minimize losses.
An increased supply chain transparency
Due to high completion in online business caused by the Covid-19 pandemic, businesses have focused on creating trust in terms of quality and ensuring goods reach their customers as soon as possible. Companies thriving to do well on online platforms have established a supply chain that satisfies customers’ needs. As a result, they continue ascending in online business, obtaining stability and incur rapid growth. Online supply chain trends contain digital maps that have relevant information on the company’s exact location and their customers to minimize the risks. It is therefore vital to roll out reliable information that would create trust among your targeted audience. Ensure you build a good working relationship by meeting the expectation of your customers in the supply chain for them to sell out your brand to others.
Integration of Climate Risk and Resilience techniques in supply chain
Covid-19 shook a more significant part of the global supply chain since the movement of goods and services came to a standstill. In most cases, most organizations are uncertain of how to face the supply chain’s challenges from climate-related risks or measures needed to sustain the business in the changing climate. Due to the disruptions caused by the pandemic, people learned to prepare for any other disaster of a similar kind or caused by climate. As an organization that participates in time to time climate evaluation to ensure you are ready for any challenge that may come your way.
As per World Economic Forums 2020 Global Risk Report, high levels of climate action failure, weather and biodiversity loss are some of the top risks in terms of likelihood and impact. Human-made environmental disasters, water crises, and natural disasters are among the top eight for probability and impact. The question of resilience and sustainability in the supply chain was raised in Detroit’s Climate Leadership Conference (CLC) on March 4th. Since the topic was interconnected with the global market, it continued to capture attention in order to find solutions increasingly.
Diversity in the supply base
As climate developments continue to evolve, climate organizations continue to commit themselves find a meaningful achievement for the supply chain industry across the globe. Most researchers recommend that most businesses that would wish to maintain a stable supply chain even in hard times, such as Covid-19, should move beyond Tier 1 suppliers ( those with which organizations have a direct contract). The supply chain is usually long, right from production, manufacturing to the direct consumption level.
The supply chain depends on the product that is in question. The extended supply chain impacts mainly concentrate on two or three suppliers, depending on the service being provided or the product at hand. As a result of the long-chain downwards, most organizations aiming at minimizing their supply chain face challenges since they lack the concrete link to most of these suppliers.
The entire story changed since the pandemic brought most things to a standstill. Companies that relied on imports and had to run during this time were forced to find natural products or goods and services within their boards. It also acted as an eye-opener to most people since it was at this particular time where most online delivery supply chain companies emerged. Additionally, most businesses opened up their links to several suppliers for their security during such hard times.
Although Covid-19 had a tremendous negative impact on businesses and the world’s economy in totality, it also had its benefits. As a result of the pandemic, people opened their eyes and saw different opportunities that were not being utilized. The market space has opened up due to high reliance on the internet supply chain. People can now order various goods and services across the world and be guaranteed that they will receive them. Consequently, it acted as an eye-opener to most manufacturers to open up a space for local production to maintain a steady supply chain even when such calamities hit the world. Getting various suppliers from outside and within the borders reduces risk when such situations happen.