How the COVID 19 Pandemic is Redefining the Way We Think About Supply Chains

In today’s global economy, global supply chains have become the standard way of  organizing investments, production, and trade. In the words of the International Labour Organization, the term global supply chain refers to the “cross-border organization of the activities required to produce goods or services and bring them to consumers through inputs and various phases of development, production and delivery”. 

For years, many companies have relied on lean manufacturing practices to meet the demands of the supply chain. Lean manufacturing or “just-in-time manufacturing” aims to reduce production and response times by delivering parts to factories only when they are required in order to minimize waste and inventory. However, in order for this model to work efficiently, the supply chain must always be responsive. 

The COVID-19 pandemic has disrupted global supply chains by impacting both demand and supply. National lockdowns and other restrictions slowed or even stopped manufacturing processes. This has left many economies and industries around the world particularly vulnerable to a wide range of shortages of products —  from lumber to electronics. For instance, the automobile industry was debilitated due to the shortage of computer chips, which are crucial car components that are commonly manufactured in Asia.

In fact, small businesses and startups are being impacted on a larger scale by these disruptions in global supply chains. These disruptions can inflate costs, cause issues or delays with production, reduce revenue, and just overall damage a company’s business. Here at Pollima, these disruptions have delayed production. For the past couple of months, we’ve been waiting for a small, simple part our hydraulic press needs. Since this small piece is not manufactured locally and the global supply chain is not functioning as efficiently, production has been hindered and revealed how susceptible global supply chains are to disruptions.

Moreover, the COVID-19 pandemic has highlighted vulnerabilities within our supply chain systems and diverged the conversation to the development of supply chain resilience. As global sourcing and manufacturing continues to present challenges, perhaps we can draw our attention to local supply chains as a potential solution. Manufacturing products locally may come at a higher price than if you were to invest internationally. However, it can also be quicker since shipping times may be significantly reduced. Local supply chains tend to be a bit more transparent and allow consumers and manufacturers to see exactly how the costs are being represented.

That’s why Pollima is committed to supporting local supply chains. It is our mission to revolutionize our ways of production and consumption and develop climate-positive products that challenge the ways we think about our economy. We want to understand existing vulnerabilities within supply chains and take actions to improve them, all while keeping the planet’s best interest in mind.