The globalization of the world has led to the creation of supply chains that are interlaced with each other. The coronavirus pandemic is a perfect example for this, as it had an impact on every aspect of life around the globe. Companies that operate in or source supplies from different countries have faced firsthand how quickly their supply chains can be disrupted when one segment fails. However, companies with redundant processes in different locations have had more success keeping their supply chain intact during these turbulent times.
What Is Supply Chain and Why Are They Important
Supply chains are connections between a company and all the suppliers, manufacturers, distributors, etc. that it works with to provide products or services to its customers.
They’re important because they bring together many entities in different locations around the world. This enables businesses to source materials from areas where costs are lower or quality is higher than their own facilities might be able to produce themselves, as well as help them reach international markets for sales of their end products. In addition, supply chains can also enable companies who have redundant processes in different locations (for example those which use both air freight and ocean shipping) – enabling them to keep globalized supply chains intact during times of disruption such as pandemics like coronavirus.
How Supply Chain Work
Corona virus has revealed how interlaced the elements of the global supply chain are. This pandemic hit every country in the world, making it a true test for companies to see if their supply chains were truly “globally integrated” or not.
Companies that work in or source supplies from other countries have experienced firsthand how easily supply can be disrupted when one segment fails – especially during times of crisis like pandemics and natural disasters. On the contrary, businesses with redundant processes in different locations have had an easier time keeping their supply chains intact due to having backups already set up should something happen at any point along their line of production.
The Corona virus pandemic has rattled public health, had a huge economic impact, and changed everyday life around the world.
Globalization has exacerbated its effect on supply chains. The virus is an example of how interlaced elements of the globalized supply chain are – with companies experiencing firsthand just how easily these can crumble when one segment fails. On the other hand, businesses with redundant processes in different locations have had more success keeping their supply chains intact during times like this where disruption occurs along some part of them. For instance, many wholesalers found that they were able to keep supplying customers directly through local distributors or by rerouting goods via trusted partners who were not affected by coronavirus at all.
Different Types of Supply Chains
There are two main types of supply chains: push and pull.
A “push” system makes goods to order, meaning they only take on new orders when their current stock is depleted or finished. On the other hand, a “pull” system supplies customers as fast as they can be supplied with products in any given time period – there is no need for inventory between stages because each part simultaneously does its own manufacturing and delivery. When it comes to protecting your supply chain against such an infection like coronavirus that can easily disrupt one segment along this line of production, businesses should consider which type of supply chain works best for them before making investments in redundant processes at different locations around the globe. For, many companies now realize that they should have invested in more push systems which would only produce to order, rather than pull systems where there is no need for inventory between stages because each part simultaneously does its own manufacturing and delivery. With the current outbreak of coronavirus, businesses now understand how important this can be – especially during times like these when one segment fails along their line of production leaving them without any way to continue supplying customers with products or services.
Analyzing Their Own Vulnerabilities
The world of supply chain management is constantly evolving, which means that companies must be able to adapt quickly.
One way for businesses to do this is by analyzing their own vulnerabilities as well as those in other parts of the system where they are vulnerable – not only during pandemics like coronavirus but also with natural disasters and even political unrest. For instance, some have found it useful to use software programs capable of mapping out their systems along various parameters so that they can better understand how these elements interact with one another before investing heavily into different redundant processes at multiple locations around the globe. By doing this type of analysis, companies will gain a more comprehensive understanding about what works best for them depending on whether or not there are redundancies already in place or if these would be necessary before moving forward with any investments.
Ways to Improve Your Company’s Resilience
Companies can improve their company’s resilience against these types of infections by creating contingency plans or building new partnerships with organizations that have different strengths than your own. For instance, if you are a wholesaler with warehouses spread across the country but also reliant on one or more distribution centers for local pick-up and delivery then it would be wise to invest in redundant processes at each location before an infection spreads throughout the system like corona virus did last year. This is because this will insure that even if something were to happen along any segment between two locations, there would still remain another way through which customers could receive products or services from your business until everything returns back to normal again – whether they are stored locally at various warehouses around the country or rerouted through a distribution center.