5 Ways COVID-19 Pandemic Has Disrupted Supply Chains

Published
May 16, 2022
by
Ram
How has COVID-19 impacted supply chains? Read our guide as we dive into the issues facing today’s fashion chains and small businesses.

After more than two years of “pandemic culture,” the global supply chain still has issues, from slight delays and hiccups to complete breakdowns. There are new reports of out-of-place shipping containers, choked ports, huge freight rates, and other issues resulting in serious disruption. Unfortunately, there’s still no easy answer to these issues. 

Unless you are facing the day-to-day battle of moving cargo for your business, it’s a good idea to look at the bigger picture and learn about some of the factors contributing to all the issues since the pandemic began

Some of the main ways COVID-19 and the pandemic have caused issues and changed the supply chain can be found here. Understanding the impact of the pandemic is essential in fully understanding the changes that are coming to the global supply chain. 

Read More: Global Supply Chains Need a Pendulum

Brand Consistency is a Major Barrier 

Brand consistency refers to all the collective elements that impact how someone feels about your business and product. No matter how they make contact, what shape the interaction takes, or even the marketing they see, everything should feel similar and cohesive

Achieving brand consistency for your company is something more valuable than direct sales, according to more than 70% of all B2B marketers

With disruptions in the supply chain, it isn’t easy to maintain the high level of consistency required. Unfortunately, with the issues related to the supply chain, things like delivery time, shipping methods, and even the condition your packages arrive at the customer are essentially up in the air. As issues with brand consistency continue, customer satisfaction levels may fall. 

Buyer-Supplier Relations are Struggling 

In several industries, a failure of essential links in the supply chain has resulted in co-development ventures and new alliances between suppliers and original equipment manufacturers (OEM). One example is the shortage of semiconductors. When this issue occurred, General Motors and Ford formed a strategic agreement with chipmakers. 

Along with the failure of certain points in the supply chain, there are other obstacles to overcome. One is a shortage of workers at all points in the supply chain and new, stricter delivery requirements

Overcoming these obstacles has resulted in creative solutions; however, it’s still impacting the supply chain

As suppliers and the supply chain change, you must adapt or get left behind. At Silq, we are ready to help. Get in touch today to learn more about how we can help your business continue to succeed. 

Read More: A Statewide Breakdown on the Status of Apparel Manufacturing

Alternatives to Shipping are the New Norm 

Today, shipping has changed, and alternatives have emerged. Today, innovations like OceanMatch by Flexport and LCL shipping, in general, are now more widely accepted

LCL or less than a container load shipping describes sea shipping as a cargo load that’s not big enough to fill typical shipping containers. When this happens, the cargo is shipped with other cargo, so the method is often called groupage shipments

With LCL shipping, you only have to pay for the volume you require for your cargo rather than the full volume of the container. Additionally, when you are shipping fewer items more frequently, you can spend a lot less on keeping inventory in a warehouse. 

It’s also more affordable than air and faster (in most cases). 

Shortages are Becoming Difficult to Hide 

In many industries, shortages due to supply chain issues are becoming increasingly difficult to hide. The most hard-hit industries are labor-intensive, such as the automotive industry. 

With COVID precautions being put in place, it’s almost impossible for workers to continue working “normally.” Because of this, getting the parts needed and shipping out manufactured products has changed. 

Businesses experiencing shortages have to find new ways to get the items needed to continue supplying customers with the products demanded. This issue has resulted in innovative solutions, such as the digitization of tasks that were once done manually. AI has taken a front-row seat to this innovation, providing many businesses with new options for avoiding shortages and operating as normally as possible.

Supply Chain is the Main Focus 

There’s no question that supply chain disruption has caused issues for many businesses. Even though this is true, it’s also created new opportunities for innovation. In fact, competitors are coming together now, more than ever before, to find solutions to overcome the supply chain issues present. 

From offering curbside pickup to making use of abandoned spaces in local areas to prevent shipping delays, companies across the globe are finding ways to overcome the supply chain issues they have dealt with for the past few years. 

Some industries have even started relying on lean inventories. While there’s an ongoing debate regarding whether this is a permanent strategy, it’s still an effective way to overcome current challenges.

Pandemic Supply Chain Disruption Doesn't Have to Effect You

COVID-19 changed and disrupted life around the globe. There’s no question that the supply chain is one element that was disrupted in big ways. 

While this disruption has impacted businesses around the globe, there are new and innovative solutions being developed to overcome these issues. 

Even two years after the COVID-19 pandemic began, the supply chain still sees several “firsts,” including an unprecedented level of carrier unreliability, higher than normal freight rates, and minimal warehouse vacancies, among other issues. 

While these problems are somewhat concerning now, it’s believed they will pass. Part of the reason it will pass is thanks to the innovation of the intelligent supply chain that is being developed. 

Are you looking for shipping solutions that will exceed your expectations? If so, we have you covered. Check out our shipping services to see what we can do. 

Read More: The Impact of New Legislation on Cotton Farming in India