Supply chains are the backbone of the global economy. They have a significant impact on the lives of all people, but some supply chains are more impactful than others. Here are the top five supply chains that create the most value for the world.
As an entrepreneur or business leader, you know that managing supply chains is a complicated process. And this year, you’ve probably been forced to work with supply chains in a way you never have.
Thankfully, some innovative platforms can help you keep your supply chains moving despite all the challenges that the COVID-19 pandemic has created.
Without technological advancement, it would have been quite impossible to maintain the global supply chain for the last 2 or 3 years. The rise of e-commerce platforms has helped the global supply chain.
On the other hand, on demand manufacturing helped many industries to sustain during the pandemic, which has become a standard these days. But there are still many challenges. In this article, we will discuss the global supply challenges.
The limited supply of Resources
After the epidemic started, the most typically sudden rise was in medical equipment like body temperature measurement and masks, then quickly the daily supplies got affected more or less.
In the course of our conversations with companies in the growth stage that are part of our network, we have actually come across a wide range of issues, from the fact that furniture manufacturers are dealing with foam shortages to the fact that bike suppliers are losing settlement terms as a result of part vendors reaching their capacity.
A recent survey by the Institute for Supply Management (ISM) revealed “record-long lead times, widespread wants of critical basic materials, growing product costs, and difficulties in moving commodities across industries.”
During the pandemic, on demand manufacturers could quickly adapt their production lines to produce PPE and other medical emergencies. In some cases, they were even able to create custom machined parts that met the specific needs of healthcare workers on the front line. The flexibility and agility of on demand manufacturing helped ensure that essential workers had the PPE they needed to stay safe during the pandemic.
Increased Freight Rates
The outbreak of covid-19 has had a major impact on the global supply chain. One of the most significant impacts has been the dramatic increase in freight rates. This has been caused by several factors, including the reduction in air cargo capacity and the closure of factories in China. These increased freight rates have had a knock-on effect on other parts of the supply chain, leading to higher prices for goods and delays in deliveries.
According to the findings of a recent study, the demand for container shipping has significantly increased across the epidemic. According to IATA, air freight charges increased. Sea freight rate also increased.
The global lockdown played a significant role in this price increase. Very few people were allowed to work. It is not easy to work in the international shipping industry, and maintaining social distance is difficult.
Manufacture product importation was closed in many countries, a major product in the import-export industry. Moreover, many countries stopped importing from other countries. As a result, freight forwarders and carriers all had to increase their rates to cope with the current scenario.
Congestion in the port
Ports were congested by ships, but there were no people to clear the containers. That was another big challenge. Most countries used lockdown to save their people’s lives. As a result, inland transportation was closed unless the product was very crucial. But other products were bound to stay at the port, creating congestion. As a result, the global supply chain almost broke sometimes.
How On-Demand Manufacturing helped the global supply challenge
On-demand manufacturing helped the global supply chain during the pandemic. The pandemic has been difficult for businesses, and manufacturers are no exception. The good news is that on-demand manufacturing can help supply chains adjust to the sudden demand changes and keep things running smoothly.
On-demand manufacturing helped the global supply chain during the pandemic by reducing inventory levels, increasing flexibility, and improving quality. In the past, manufacturers would produce products and then store them in warehouses until they were needed.
This system was prone to errors, as products could become damaged or lost in transit. On-demand manufacturing eliminates this problem by producing items only when they are ordered.
This reduces the need for storage space and prevents product damage. In addition, on-demand Manufacturing allows manufacturers to adapt to changes in customer demand quickly.
The Covid -19 pandemic had a massive effect on the global supply chain. According to IATA, air freight transportation was seriously affected, and the price increased significantly. The sudden demand for medical and other equipment also created problems for the global supply chain. The manufacturing industry faced a huge problem. Fortunately, the world is slowly getting its old state again. Hopefully, the global supply challenges will be over soon.
Fortunately, we now have on-demand technology, which helped the global supply challenges during the pandemic.