Proper functioning of the supply chain is essential for a business to meet its customer expectations. The supply chain is a major area that was impacted by the coronavirus shutdowns. Without a proper supply chain, many businesses struggled with disruptions in production due to supplies’ unavailability. The finished products also faced obstacles in reaching the retailers on time. To become more resilient, Logistics support companies learned valuable lessons during the pandemic to diversify their supply chains.

Impact Of COVID-19 On Supply Chains

Many manufacturers and retailers faced serious impacts on the supply of raw materials and components during the lockdowns. The global pipeline of parts and components went dry and were unable to feed the production units around the world. Many of them were forced to suspend their operations due to the unavailability of resources. The next major impact was on the consumer market for finished products. With many of them restricting their travel and consumption, the demand was coming down. The warehouses stocked with merchandise faced a devastating blow from the outbreak.

Consequences Of Changing Customer Behaviour

Coronavirus created a sudden surge in demand for a short period and disrupted the supply chain management in small businesses. Large organisations had a streamlined process for the movement and management of inventory. Through their diverse suppliers, they were able to ensure the right products are available to the right people at the right time. But small companies became vulnerable because of the fluctuations in demand. Variable demands are difficult for smaller companies to absorb because they lack the size and versatility needed to ensure an acceptable degree of inventory supply during demand shocks.  

Supply Chain Planning For Disruptions

Logistics support companies learned that the disruption caused in one part of the supply chain affects the entire production line. To manage risks in supply chain planning, logistics provider should identify signs of disruption. Shifting the production to alternative sources will create a resilient supply chain. Diversifying the supply base and identifying backup suppliers are crucial to mitigate the disruptions. It is not enough to know your suppliers. You should know your supplier’s suppliers to identify the vulnerabilities. Even though it is difficult to anticipate such unprecedented events fully, logistics support companies can prepare better the next time. 

Turn Crisis Into Opportunity

Companies in the service industry that depend on customer volumes will face cash-flow troubles during these events. But those who are better prepared can turn the crisis into opportunity by becoming more resilient. Diversifying your suppliers and building resilient supply chains will help you gain new markets. Instead of chasing low labour costs, it is time you think about reducing your reliance on suppliers in one country. Creating different supply bases will reduce the impact of local problems in your supply chain. As we enter the new normal, supply chain companies should be flexible to cater to the new customer demands and come together to create resilience.