According to Alex Fieldcamp, pandemics are having an increasing influence on global supply systems. New cars are not being manufactured, and work constraints caused by the epidemic are adding to the inventory shortage. Meanwhile, supply chains have been interrupted by food sector disturbances, with orders canceled and distribution businesses trying to reconcile inbound farmer orders with new logistical procedures. For businesses that rely on a global supply chain to satisfy their demands, this is a perfect storm.
The way commodities are created and distributed has changed as a result of globalization. Companies are increasingly manufacturing components and shipping finished goods throughout the world. An Apple iPhone, for example, is made in various nations before being sent to the United States or Europe. This procedure has become more efficient and convenient as a result of globalization. Companies must investigate innovative methods to cooperate with outside sources to boost efficiency in order to remain competitive. There are three options for doing so: Pandemics: People in poor nations currently labor in garment making and other fine-tuned operations. A pandemic would hasten the implementation of emerging technologies like Industry 4.0, which would drive workers out of rich countries and replace them with robots. Cost projections will vary as this technology spreads. Hiring employees in underdeveloped nations is substantially less expensive than deploying robots in affluent ones. Trade embargoes and economic slowdowns are two further instances of global supply chain disruptions that have a negative impact on company profitability. The Trump administration, as well as other recent political shifts, have put pressure on the global supply chain by seeking to use government power to safeguard American interests and prohibit Chinese enterprises from joining the US supply chain and conducting business with US allies. Bipartisan backing for harsher measures against China is reflected in the new law. If the Biden administration follows suit, sanctions on US allies may be imposed as well, which will have an impact on business supply chain strategy decisions. In Alex Fieldcamp’s opinion, the impact of the Trump administration's trade policies, notably their influence on global supply chains, is still being debated. Extending the hours of port labor in the United States is one of the most popular suggestions. While this may help to solve certain supply-chain issues, it also opens up new chances for corruption. Smaller businesses will most likely struggle to stay afloat if items do not arrive in time for the holiday shopping season. Transparency in global supply networks has become increasingly important as more customers expect it. Some even claim to be prepared to spend an additional 2% to 10% for a clear product. Consumers value knowledge about the working conditions of the firms that manufacture their goods, and some are willing to pay a premium to learn more about these practices. More discriminating customers also want to know about the chemicals and resources used in the products, as well as the conditions under which they are made. It is impossible to overstate the importance of openness in global supply systems. Companies must be aware of their suppliers' standards and cultures. When establishing a worldwide supply chain, changes in time zones, language, and cultural standards must be taken into account. Suppliers must also be able to comply with rules and deliver useful information to their consumers via IT infrastructure. A worldwide supply network necessitates significant investment. The Association for Supply Chain Management explored ideas for preparing global supply networks for the distribution of the new vaccine and the use of digital supply chain management at a recent conference on the implications of the COVID-19 pandemic. Manufacturers are trying to retain operations and adjust their supply chains to the new realities of a post-pandemic economy as the COVID-19 epidemic spreads. According to the Harvard Business Review, domestic production pressure and employment will rise, necessitating a rethinking of global supply networks. Alex Fieldcamp pointed out that, COVID-19's impact on global supply networks is impossible to predict, but the threat is genuine. A worldwide epidemic of the H1N1 virus killed at least 180,000 people in the United States earlier this year. It was the most devastating epidemic in contemporary history. The supply chains of multinational firms in the United States are particularly prone to interruptions due to the disease's lack of control.
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