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Demand volatility is the supply chain disruptor of 2020

In February, supply chains braced for ongoing issues with supply. China manufacturing was shut down for weeks as the coronavirus spread. Risk management conversations, which started during the trade war, gained volume as sourcing organizations considered relocating or duplicating suppliers.

The pandemic is still the dominant force on global economies, but supply is no longer the top problem. By June, 51% of supply chain leaders saw demand as their top concern, beating out supply at 33%, according to a CalAmp and Reuters Events survey. Demand volatility is the real story of 2020 supply chain stress. 

From cheese to cleaning products, massive behavioral shifts changed consumption patterns and shredded established production plans. Supply chain managers converted production lines from bulk SKUs to family-sized. In some cases, they closed factories and furloughed workers. In others, overtime restrictions went out the window. Retailers opened new warehouses to handle the explosion of online orders. 

Read the stories below to learn how supply chains contended with demand volatility and reworked planning when forecasts fell apart. 

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