Disruptions Of Supply Chains Beside Global Pandemic

When you run a business, you always want to deliver the best to your customers by offering high quality products an service, quick delivery, etc. However, business often faces the unexpected especially when it comes to supply chain. Delivering a finished product to customers often faces challenges such as a shortage. Those can be caused by many factors such as port capacity, shipping containers, raw materials, etc. 

The disruptions in global supply chain

We are still facing against the global pandemic that has affected almost every aspect of life including supply chain. However, it is not only covid-19 that contribute to today’s global supply chain’s chaos. There are other factors as well such as consumer demands. The pandemic is like a major trigger to already piled up factors. And here are some of the reasons why supply chain is in so much chaos today:

Smart tech

Even before the pandemic, almost everything around us is already getting smarter. In supply chain, semiconductors and chips are being embedded in items and the pandemic has accelerated this trend. The problem with this smart technology to track down items that is being delivered from sellers to buyers is that the time to make those semiconductors and chips. It even takes a long time to build more chip manufacturing plants. Not to mention that it requires billions of dollars. This situation obviously strains the supply chain’s components.

Social media

Social media is not something new in our modern world. It has been an important part of our life. However, in these past few years social media has been contributing a lot at brand experience. It is easier for companies to introduce and promote their products through social media platforms, making it easier for them to increase sales. However, this easy buying pattern and access for customers increase the sales and in return, leading to surge in demand and pressure on supply chains. 

Easier payment method

This is also what contribute to surge in demand in almost every segment of items offered by companies and brands. Customers today like using buy Now Pay Later platform especially those who are young customers. They can buy almost anything they want and worry about the payment since they don’t have to shell out the entire cost upfront. Installment payments has made it easier for customers to access their needs. And this increases sales significantly, making supply chain industry faces another pressure. Customers keep buying more goods and it strains supply chain in return. 

In conclusion, there are three major causes of supply chain disruptions aside from the global pandemic. They are smart tech, social media, and financing platform. Meanwhile, covid-19 is viewed as factor that accelerates of what has already happened in supply chain’s chaos today. Demand and pressure on supply chain will likely to continue as we are not yet able to contain the pandemic fully. Improvements are needed for more sufficient supply chain infrastructure, technologies, and people. Hopefully, we will have more agile, efficient, adaptable, and sustainable supply chain soon in the future.