The pandemic has caused havoc in supply chains around the world due to factory and warehouse shutdowns and massive manufacturing disruptions caused by COVID-19 restrictions.
Supply chain burdens delayed shipments, caused product backlogs, and subsequently increased prices for both products and deliveries.
Experts say the supply chain is still catching up, but local businesses need to assess post-pandemic supply chain vulnerabilities and find ways to enhance them in the event of another major disruption. there is.
“We used the term’perfect storm’to describe what happened to the supply chain during COVID,” said ICC Logistics Services Inc, a transportation and logistics consultancy based in Hicksville. Said Tony Nuzio, the founder of.
The outbreak of COVID-19 in China closed the factory and cut off initial supply, he says.
In addition, there is a capacity issue on the transport side of the supply chain, “everyone caused a backlog by people at home and shopping online,” he explains.
Demand is still outstripping supply, and “the entire supply chain is addressing uncertainty about what the next turmoil will be,” Nugio said.
As a result, companies need to use this time to assess vulnerabilities and strengthen their future supply chains, says Nuzio, who works with clients to identify post-pandemic issues and vulnerabilities. I will.
But generally speaking, there are two main ways to mitigate supply chain risk, and is a Manhattan-based supply chain and operational analysis expert and co-author of “Supply Chain Design and Management.” One Edith Simtilevi says.
One is to ensure adequate inventory of the most important products and components, and the other is to diversify our suppliers, she says.
Often, companies will rely on one or two suppliers, which was a pandemic issue, she says.
Having relationships with multiple suppliers has its benefits, but for some reason, “if you only have one supplier, make sure your factories are in multiple different locations,” Simchi-Levi said. Says.
Having product diversity is another way to mitigate risk, she says.
Howard Kipnes, president of Cedar Knolls, a Ronkonkoma-based homebuilder, said during a pandemic when he had to consider alternative products when it was difficult to get a regular flagship product. I learned directly.
He says that as people work at home, the demand for building and timber supply is enormous, which has led to higher prices for building products.
“As important as pricing was the availability of the product,” says Kipness. For example, it was difficult to get a deck railing.
As a result, if a particular product was not available, he forced the client to make an alternative product choice. Some of these new products eventually turned out to be high quality products at competitive prices for future use by Kipnes.
While accepting alternative options can help, it also benefits from assessing where inventory is stored and perhaps rethinking inventory retention practices, said East Norridge-based LDK Global Logistics founder and founder. Says CEO John Costanzo. service.
According to Costanzo, companies need to know where their major suppliers source their materials.
For example, you might be buying from a Michigan-based supplier, but perhaps that supplier gets everything from China, so a Michigan supplier’s critical emergency response plan in the event of an offshore supplier closure. It is useful to know.
Also, as a small business, it could help you find larger capacity and better prices in collaboration with third-party logistics companies that are associated with multiple freight carriers, Costanzo said.
Sudhir Sachdev, an assistant professor at Farmingdale State College Business School and chairman of the Supply Chain Management Association NYC /, said that in the future, companies will have better supplier relationships with their existing careers when “time is quiet”. You should also consider building. Long Island Forum.
He says there are at least two or three suppliers who randomly buy in rotation. That way, if you need help from them during a crisis, there is some history.
Sachdev says they will probably be more willing to extend your credit in times of crisis, as it also helps build your credit rating with them.
Also, manage supply and inventory carefully, he says.
He says you don’t want to rush to buy too much and then get stuck in inventory that you can’t get rid of.
Use what you’ve learned from the pandemic to enhance your supply chain process. “If you can manage your supply chain, you can survive anything,” Sachdev said.
Demand and backlog have continued since COVID-19. According to a National Retail Federation survey last April, 98% of retail respondents were affected by port delays and other shipping delays, creating problems throughout the supply chain.
Source: National Retail Federation
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