A perfect storm of demand outstripping capacity

Published by Maria Charalambous on

       

A perfect storm of demand outstripping capacity

May 6, 2020 · posted by posted by Liam Fassam
in Risk, Supply chain, Technology

Supply chains are under strain, which has led to a risk of food fraud.

There has been much discussion over recent weeks around keeping supply lines for foodstuffs open, with the media showcasing the state of UK supply with sensational stories of ‘stock-outs’ and queues reminiscent of wartime rationing processes.

However, the reality of the situation is quite different. At the time of all this press-led kerfuffle, procurement and supply chain professionals were busy across the sector, keeping supply lines open for a business-as-usual approach. This was not easy, as air networks had declined by as much as 95%, meaning alternative routes needed to be found at pace for fresh product (including pharmaceuticals).

Much of this diversification of logistics nodes (the means and methods of transportation) meant a switch from air to sea and overland [trucking], which of course equates to extended lead times to an already constrained lead time.

Coupled to this are the overland delays across Europe – meaning, even with changing the method of transportation, there are [still] significant lead time extensions due to additional checks being undertaken at borders.

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