A poll conducted by the Chartered Institute of Procurement & Supply amongst global supply chain professionals has found that the disruption caused by COVID-19 will lead to permanent changes in global supply chains.
The survey ran between June 17 to July 3. Global supply chains managers who were asked about the effects of lockdown and the pandemic on their businesses and in their region.
Of the 112 respondents, 46 percent of businesses stated that it will take 12 months or more before supply chains return to pre-COVID levels of productivity as businesses look to adapt to new ways of working and managing the varying stages of lockdown around the world.
The survey showed that supply chains were being remapped and developed in reaction to new regulations as well as permanent and temporary lockdowns. Nearly two-thirds (62 percent) of global supply chain managers said they will seek new or alternative suppliers in order to rebuild their supply chains in the wake of the COVID-19 disruption.
These actions could cause a significant impact on global trade, with nearly a third (31 percent) also stating that they will reshore their operations in order to limit further international disruption and find new suppliers.
The impact also affected prices. Two thirds (67 percent) of global businesses reported having to pay more for goods and services as a result of the disruption, costs which may be pushed to consumers in the coming months.
As businesses reacted to changes day by day, CIPS asked about initiatives that may fall by the wayside as supply chain managers tried to protect their businesses in response to shifts in trade and other economic impacts.
Sustainability initiatives were affected, with 15 percent of businesses reporting they will no longer maintain their plans for sustainable supply chains due to the impact of Covid-19.