The COVID-19 pandemic disrupted global supply chains in unprecedented ways. As the pandemic ebbed and flowed, companies adjusted to supply disruptions and worked toward normalizing supply conditions to meet demand. According to a systematic literature review of recent studies, some scholars maintain that the pandemic “revealed the fragility of supply chains, brought many logistical activities to standstill, and completely disrupted markets,” while others conclude that the pandemic “also created unlimited opportunities for organizations and industries.”
These findings present a complex paradox for supply chain management, spurring the development of more resilient supply chain models as well as new business tactics leveraging business opportunities uncovered by the pandemic. Many individuals will seek to enrich their tools for navigating this transformed business landscape by studying the field in depth with an online Master of Business Administration (MBA) in Supply Chain Management program such as the one offered by Fitchburg State University.
Various Impacts Cause Widespread Disruption
Throughout the peak years of the COVID-19 pandemic, most organizations experienced significant supply chain disruptions. These disruptions developed from numerous intersecting factors like constant shifts in consumer demand, outbreaks and lockdowns impacting sourcing and manufacturing, logistics bottlenecks, forced adaptation of distribution models, the “great resignation” and the candidate-driven job market it created. Thus, organizations of many different types navigated a variety of challenges, such as:
- Longer lead times
- Lower manufacturing capacity
- Less inventory
- Tight talent market
Moreover, supply chain disruptions and causal factors added to other disruptions, such as price increases due to supply and demand, worker shortages driving up wages and the inflation all these conditions can lead to. In turn, these factors resulted in further challenges to the supply chain, creating a cyclical chain of disruptions.
Adjusting Toward a Developing New Normal
Clearly, the pandemic caused widespread problems throughout the logistics landscape, rippling across the world’s commercial supply chains and economies as a whole.
Logistics operations may never return to a pre-pandemic “normal,” but organizations are far beyond the hectic days of cobbling together short-term solutions. Companies found ways to ameliorate immediate impact and gain clarity for the near term. As the dust settled, companies strove to create more resilience in their supply chains.
Reflecting the pandemic’s profound impact on the global economy and supply chain cracks — or chasms — uncovered by the public health crisis, government agencies from top to bottom also joined in the push for more resilient and robust supply chain models. Finding solutions to complex supply chain challenges is now a national and global effort to build preparedness for future disruptions.
Build Sustainable Supply Chain Resilience
Here are steps companies can take to bolster their supply chains and prepare for the next disruptive crisis, whatever it may be and whenever it may emerge.
- Take proactive, agile action. Companies must actively assess and prepare for random risk before it happens by planning and investing in solutions before an event occurs.
- Adapt and adjust as quickly as possible. Businesses and industries constantly evolve, so a supply chain must respond rapidly to keep a business and its customers’ businesses viable.
- Prioritize diversification and qualifying new suppliers. This as an ongoing function that the COVID-19 crisis vividly highlighted. Diversifying supply chain channels fosters redundancy and agility when isolated conditions necessitate pivoting.
- Consider strategic nearshoring. Bringing suppliers closer to production facilities and markets can help stabilize inventory replacement.
- Use technology systems designed for your industry. Supply chain managers can research and deploy software developed specifically for their operational niche and analytics needs. Customizing generic software is time-consuming and expensive.
- Stay up to date on tracking and location technology. Companies can leverage barcodes, bokodes, QR codes, RFID tags and automation capabilities that streamline tracking and distribution.
- Consider the supply chain a communication channel. Just as resources move from point to point along the supply chain, so should the information flow among partners and employees.
- Embed supply chain planning into overall strategy. A supply chain isn’t just an operational function; it’s like a circulatory system that keeps vital materials flowing to sustain productivity.
- Monitor conditions in key locations. Supply chain disruption comes in many forms, from natural disasters to regulatory changes. Supply chain leaders must watch for the signs and respond proactively.
While the COVID-19 crisis highlighted significant challenges to modern global supply chains, proactive tactics will help ensure supply chain resilience and stakeholder well-being. Through advanced studies in a specialized MBA in Supply Chain Management program, leaders in the field can develop the critical skills necessary to navigate inevitable supply chain challenges in the future.
Learn more about Fitchburg State University’s online MBA in Supply Chain Management program.
