COVID-19 and the Supply Chain
Making History
Just a few weeks ago, terms like “social distancing” and “flattening the curve” were pretty much non-existent. At least they were not prevalent in our daily conversations and news reports. Now they are being added to dictionaries and written into history books, along with the loathsome Coronavirus, or COVID-19.
The outbreak of this virus is being felt worldwide, both emotionally and industrially. Families are losing loved ones to this dreadful illness, jobs are being suspended or eliminated and the tides of supply and demand are shifting drastically. Necessities are being purchased in enormous quantities while luxury, or non-essentials are being completely untouched.
Who’s Buying What?
The effect of this pandemic on the global supply chain seems to be highly dependent on the customer that is being served. On one side, purchasing levels of basics such as food and toiletries have spiked to unprecedented highs. Not to mention personal protective equipment for medical workers.
The automotive industry, however, has come to a screeching halt, in part due to diminished consumer interest, but also the lack of necessary parts manufactured by China. Production of electronics has also been slowed due to the shutdown of factories in China that produce essential components.
Increased Production, Decreased Space
Not only are the decreased numbers of imports from China affecting the supply chain, but also the reduced exports to China as well as other countries. And with a surge in demand for many items produced here in the U.S, we now face storage issues. Some companies are having difficulties with inadequate warehousing capabilities due to the drastic increase in production.
Same Factory, New End Product
While some countries such as Turkey and India have reduced exports of healthcare merchandise, many innovative companies are re-purposing their production lines to help meet the demand for products now deemed essential due to the COVID-19 pandemic. Perfume manufacturers are making hand sanitizer, industrial companies are making hygienic masks, distilleries are creating disinfecting alcohol and automotive companies are working on producing urgently needed medical equipment such as face masks and ventilators.
Transportation is Key
Subsequently, transporting essential parts to manufacturers, or final goods to consumers has become even more important. Grand Aire has been a leading provider of on-demand air and ground transportation services for over 30 years. We have dedicated logistics experts readily available 24/7 to provide the best transportation options available for our customers.
Let us put our experience and expertise to work for you. Email our team directly at logistics@grandaire.com or call us at 1-800-70-GRAND.