The 2020 pandemic has caused major disruptions in the always evolving supply chain logistics. It is 2022 now, and the pandemic has still not ended, but the challenges still exist. Companies are trying out every possible way to tackle the situation and still be competitive in the eCommerce space.

Here are three of the major supply chain challenges faced by companies during the pandemic.


1. Material Scarcity:

The scarcity of integrated chips is why motor companies like Mahindra, which has launched its latest XUV 700, which has tons of integrated technology, cannot deliver vehicles to their customers even in 12 months. This is the case in many industries where there is a demand, but the supply chain is so weak that customers are lined up, waiting for the products to get back in stock.

Another challenge is that pandemic has also changed the way people lead their lives, which means the consumption of their goods pattern has also changed. The demand for a few products, which was really scarce pre-pandemic, has raised suddenly, causing the supply chain issue. The abrupt rise in demand is why many companies are still struggling to meet their commitments. On top of that, the shortage of material has hampered the entire process, forcing manufacturers to lose customers and business.

Now, shortage of material gives rise to a third issue, which is the rise in the price of the base product, which makes the manufacturing of the end product costly, and the end product is sold at a higher price. In light of such a scare, it is tough for a brand to sustain.

2. Difficult To Anticipate Demand:

Demand forecasting during the pandemic has added another layer of difficulty, as it is complex to balance out the inventory. Predicting customer demand has become very tough due to uncertainties based on new COVID virus variants. This has forced companies to rely on their gut instinct rather than on data-driven research, which does not stay valid anymore. Supply chain managers have been forced to dump previous data and form new customer demand trends based on the current consumption for future predictions.

3. Changing Consumer Attitudes:

There has been a vast change in customer attitude during the pandemic and it is here to stay post-pandemic too. They have a lower threshold for delivery time. When there is already a challenge in the supply change, reducing the delivery time has become a bigger challenge. Especially if it is multichannel order fulfillment, then the system needs to be agile. Taking the help of automation is also essential to make the process more efficient. A big help would be making use of a Supply Chain Consulting which excels in managing supply flows and securing product availability in a balanced way.

The Bottom Line:

The pandemic has driven higher eCommerce demands that too with the expectation of minimum delivery time. This calls for a rise in the infrastructural need and a reduction in supply chain disruptions. Companies have to speed up in order to fulfill customer expectations. The change the customer expectations is here to stay even post-pandemic hence the supply chain of any company needs to be only strengthened to stay relevant to business.

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.