Major supply chain problems arose during the COVID-19 pandemic due to shifts in demand, labour shortages and other structural factors. Even almost two years after the pandemic, 38% of businesses in the UK state that access to stock is still an issue. To make things worse, the Russia-
Ukraine War and COVID-19 lockdowns in China have affected supply chains in consumer goods, metals, food, commodities, and energy sectors. Therefore, businesses are exploring alternative ways to tackle with the problem including entering into multiple supply arrangements
as well as trying to increase their shipping capacity.
Russia’s dominant role in energy, metals and wheat supply has caused a major impact for supply chains, resulting in the highest commodity price inflation levels since 1960s especially in Europe and the UK. Such rising prices creates pressure on consumer budgets which, in turn, may force a slowdown in demand. The results of supply chain problems are very serious for technology giants like Apple, too. The technology industry-wide silicon chip shortage and disruptions due to COVID-19 lockdowns in China have resulted in over 26% decline in sales only for the first quarter of 2022 which was expected to worsen.
- What is behind the global supply chain crisis? – J.P. Morgan
- Small Business Trend 2022 – Xero.com
- Supply chain – Investopedia. com
By Sude Capoglu , BeComAware Student Ambassador.
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