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Economics

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Nov 24, 2024

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docx

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In the recent era of bio and weapons war, Supply chain disruption is faced by many major sectors that also contributed to inflation elevation. The inefficient supply chain is caused by time delays, labour shortages, congested transportation routes and an increase in customs formalities. The direct effect of this is economic loss for a country and companies. As per the rule, the supply chain problem is only effective if the demand is less than the supply. The Russia-Ukraine war has aggravated challenges for the supply chain for many companies and heightened inflation in many countries (Kim et al., 2023). Many U.S. industries have faced the evil of war in terms of food, energy, semiconductors etc. A similar effect on the economy was noticed during the pandemic. This worldwide crisis has shut down many small business organizations and impacted the supply chain of large organizations. However, companies evolved their strategies to go through difficult times like wars and pandemics. The organization found their silver lining in technology and expedited its use. Although they were equipped to use the latest technologies their insight to go digital completely was not envisioned (Kim et al., 2023). Many businesses have responded with ingenious pivots that have propelled them into new markets. Instead of closing down or taking a break, many great corporations are undergoing major modifications in order to remain alive and relevant. Unilever is a classic example of a multinational reorganising its supply chain in the midst of a rapid-fire crisis. The company sponsoring many brands made adjustments to their products by switching to their new production lines with new product ranges considering the demand. One product that was sold in ignorable amounts earlier, became the reason for the company to earn 1 billion euros (Perry, 2023). Unilever converted its deodorant facility in Leeds, as well as others around the world, to create hand gel at scale in weeks - expanding capacity 600 times. As a consequence of the shift, the firm was able to launch the brand in 50 new regions in less than 100 days. In addition, the Anglo-Dutch company has evolved its 20-
year-old facility in Hefei, China, into digital manufacturing locations. Digital end-to-end ecosystem operations are performed, with AI used throughout the manufacturing process and certain operators able to work from home during lockdown (Perry, 2023). The Head of the Supply Chain Home Care said that the crisis gave them a chance to grow more and suggested that adaptive supply chains are very much a competitive edge for businesses. The future of Supply chain management is digital. This will also comprise complex algorithms, machine learning and artificial intelligence as a mainstream. This counts on an intelligent inventory management system with smart and fully digital supply lines (Easen, 2022). References: Easen, N. (2022, November 10). Why you need a cognitive supply chain. Raconteur. https://www.raconteur.net/supply-chain/cognitive-supply-chain Kim, K., Martin, M., & Rao, G. (2023). Russia-Ukraine war impact on supply chains and inflation. KPMG. https://kpmg.com/us/en/articles/2022/russia-ukraine-war-impact-supply- chains-inflation.html Perry, M. (2023, October 24). Five companies that reset their supply chains. Raconteur. https://www.raconteur.net/supply-chain/companies-supply-change
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