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How has COVID-19 affected the global international supply chain?

Derrek Ruggs

Well, COVID-19 has impacted the global international supply chain in significant ways. Since the outbreak began, many countries have implemented restrictions on movement and trade, which has disrupted the flow of goods around the world. As a result, businesses have had to adapt to new challenges and find new ways to maintain their supply chains and keep their operations running.

One of the most significant effects of COVID-19 on the global supply chain has been the shortage of certain essential products. In the initial stages of the outbreak, there was a global shortage of personal protective equipment (PPE) for healthcare workers, as well as medical supplies such as ventilators. Supply chain disruptions meant that demand for these products exceeded supply, making it difficult for many countries to protect their citizens adequately. This led to many governments engaging in a kind of 'beggar-thy-neighbor' approach, hoarding supplies and putting pressure on other countries to forego their own needs.

Another significant impact of COVID-19 on the supply chain has been the disruption of global shipping and logistics. As countries restricted travel and movement, many ports closed or reduced operations, causing delays in the delivery of goods. This led to a backlog of shipping containers in some areas, which meant that some companies had to resort to air freight to import and export goods. That, in turn, led to increased freight costs and slower delivery times.

The pandemic also highlighted the need for transparency and traceability in the supply chain. Many companies were caught off guard by the disruptions caused by the outbreak, as they did not have proper visibility into their supply chains. As a result, they were unable to respond quickly enough to the changing situation. Going forward, companies are likely to place a greater emphasis on transparency and traceability, using technology such as blockchain to track goods from production through to delivery.

In conclusion, COVID-19 has had a massive impact on the global international supply chain. However, it has also prompted businesses to innovate and find new ways to maintain their supply chains and keep their operations running. By increasing transparency and using technology to track goods, companies can mitigate the risks associated with supply chain disruptions and be better prepared for future events.