Supply Chains bf

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Grand Canyon University *

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315

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Marketing

Date

Jan 9, 2024

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docx

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2

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Brennan Fredricks 10/22/2023 MKT-315 Timmnons Global Supply Chain Problems The Covid 19 Pandemic exposed major vulnerabilities in the global supply chains that had prior to been realized or understood. The shut down of many businesses and production lines, accompanied by rapid shifts in demand caused massive delays, bottle necks, and shortages, which left consume waiting for long periods in some cases for essential supplies. In the aftermath, economists have begun to identify these vulnerabilities in or to ensure better resilience in the future. The primary vulnerabilities that have been identified are overdependence on single sources, over-reliance on specific geographic regions, and prioritizing low costs over preparedness. (Page, 2023). The remedy to these issues are simple in principle, but complicated in practice. To begin with, businesses have begun diversifying their supply and manufacturing sources, as well as building new production facilities for essential resources. This same principle, diversification is also being applied to geographic locations. Many essential resources such as microchips and semiconductors are produced exclusively in Asia, which can result in severe issues for the tech industry, if supply routes from this region are cut off for any reasons. This raises the need to create new channels in other regions, including Europe and North America. Lastly, industries are discovering that they need to invest more money into their supply and manufacturing chains, to maintain resilience against supply chain breakdowns. In the past, most companies tried to cut
costs by keeping inventories lean, and relying on third party sources for logistics, but many companies are now seeing the need to invest more money in these areas, creating buffer stock, as well a more direct roll in supply and manufacturing. (Page, 2023). Reference: Page, P. (2023). Here’s How Supply Chains Are Being Reshaped for a New Era of Global Trade. The Wall Street Journal. Retrieved from: https://www.wsj.com/articles/supply-chains- have-changed-forever-819d9afd
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