Coronavirus disrupted supply chains. Will it happen again if another wave arrives?
From toilet paper to milk, supply chain disruptions and shortages at the start of the coronavirus pandemic were noticed by consumers across the U.S. It became a useful learning experience that will be helpful if there’s a next wave later this year.
That’s the expectation of two panelists during a supply management presentation on Friday, May 8. Hosted by Western Washington University professor Peter Haug, the Zoom presentation was one of a series of presentations being organized by Western’s Alumni Association and the College of Business and Economics that focused on the impact COVID-19 is having in the community.
Given what’s been learned about the virus and what needs to be done to prevent it from spreading, Bill Best said he expects more success when it comes to reopenings and closures if hot spots develop. Best is the divisional vice president of the supply chain for REI, which had to deal with oversupply issues early on in the pandemic as state restrictions closed stores.
While businesses have a better handle on preventative steps, challenges could be more on communities trying to strike a balance between social responsibility and civil liberties, he said.
Bridget Brewer said she expects the supply chain to work better this fall because of what they learned at the beginning of 2020, particularly with coronavirus prevention. Brewer is president of NIC Global, a manufacturer of custom parts that has its corporate headquarters in Seattle.
Compared to early on in the pandemic, “I feel much better at keeping people safe,” Brewer said.
Supply chain failures
The timing of the pandemic in China was challenging, according to the panelists. With the quarantines happening right after the Chinese New Year in late January, many workers were quarantined away from factories, Brewer said, shutting down operations.
Shipping products to the U.S. from China quickly came to a halt, which would later have implications on U.S. farmers, Brewer said. With large ships not coming to the U.S., American farmers had no way of exporting products to China. That led to the situations where farmers had to let food go to waste.
Supply chains also had to adjust as restaurants were limited to to-go orders, putting added pressure on grocery stores, Best said.
Future short supplies
Brewer said shortages will depend on what happens with the pandemic in other countries. A lengthy shutdown of India would have an impact on the clothing industry, for example.
Commodities that rely on energy, like aluminum, will continue to see lower prices, which could be disruptive.
At REI, the outdoor recreation retailer is expecting a shortage of bicycles, Best said. Even with the stores closed, bikes are outperforming original sales forecasts. It’s become a popular way to exercise and practice social distancing during this pandemic, he said.
Both Best and Brewer noted that the pandemic is also creating opportunities to make business better. Brewer said there’s more incentive to make things happen and being nimble. Companies are also finding that workers who can work from home are being very effective there.
This story was originally published May 10, 2020 at 5:00 AM.
