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Why Recovering Supply Chains Have A Long Road Ahead

Photo by Arno Senoner on Unsplash

From politics to the pandemic to staff shortages – supply chains worldwide are experiencing disruption for multiple reasons. There seems to be a lag for recovering supply chains – many of which are still experiencing setbacks, especially during the festive holiday season. Unprecedented numbers of orders combined with the already underlying issues mean that supply chains are experiencing a recovery lag.

Below, we will look at why there is a long road ahead and at some industries that seem to be recovering faster than others.

Why It’s Not The Industries Fault

The issues lie directly with the delivery side of the supply chain – the industries themselves are not the ones at fault. In fact, the industries themselves are thriving in the sense that the orders are coming through and the supply is there – it’s simply disruption further along the supply chain.

Take the construction industry, for example. The construction industry is thriving thanks to the ever-growing demand for new businesses, homes, power plants – you name it. The ever-growing demand for supplies, from aluminum extrusion profiles to steel rods, means there’s an entire supply chain thriving for the construction industry that’s only disrupted at the end.

The same goes for food, retail, auto manufacturing. The demand is there – it’s the delivery that isn’t.

The Industries Struggling

Some industries are struggling, and others seem to be thriving. The industries struggling the most are affected by the global issues the rest of the world is battling. For example, China has experienced unprecedented power shortages, which has meant that much of the world has had difficulties receiving the materials and products they usually would.

And, in Europe and the US, there is an unusual shortage of truck drivers that is causing a new supply chain disruption headline each week. Without drivers, there’s no way of getting products to customers in the same timeframe that once was possible.

That then has a knock-on effect for profits, not only because people aren’t prepared to wait for their products, but for product wastage and time spent trying to resolve the supply chain delay. From refunds to sourcing new delivery couriers, companies are paying through the nose to tackle the issues we’re experiencing.

In the UK, there’s the issue of Brexit and truck driver shortages that are causing business bedlam. Wherever you look worldwide, there are supply chain shortages that aren’t self-resolving.

What’s The Solution?

The solution doesn’t seem to be an easy one. One expert, Tim Uy of Moody’s Analytics, said that the issues with the supply chains are likely to get worse before it gets better. The ever-growing demand on industries battling against the lack of courier services means a long line of delays that will only get worse through the festive season.

The solution is more drivers, simple access through the borders, and time for global economies to recover.

The issues with the supply chains are not an easy fix, and it’s the thriving industries that are at a detriment because of it. Supply chains will need to play catch-up for some time before the issue is resolved – which many experts predict will be damaging to smaller businesses, in particular.

About the author


Bernadine Racoma

Bernadine Racoma is the Content Manager of Her long experience in an international development institution and extensive travels have provided her a wealth of knowledge and insights into cultural diversity. She writes to inform, engage, and share the idea of the Internet being a useful platform for communicating, knowledge sharing, educating, and entertaining. You can find Bernadine Racoma at Twitter.