Life as we know it has changed so much since the COVID-19 pandemic started; the devastation has gone far beyond the hospitals. In fact, high-risk merchants and businesses were among those that suffered the most because of supply chain disruption, huge losses, and forced shutdowns due to COVID-19 restrictions. 

As things slowly get back to normal, let’s take a closer look at the current supply chain and how it’s affecting businesses.

The supply chain disruption continues.

Most countries have already lifted restrictions by now, but the supply chain continues to suffer because of the sudden surge of demand for goods and services as the economy begins to recover. 

Businesses are eager to get back on track and they need materials to make their visions happen. This puts the burden on the supply chain and businesses end up suffering from the shortage of goods that they need to speed up their recovery. 

In fact, 55% of companies are planning to downgrade their growth to adjust to the supply chain situation.

Shortage of materials leads to higher prices.

Nothing is more frustrating for businesses than to be restricted with their operations just because they can’t find the essential products they need to keep the business going. 

This leaves them looking for other suppliers that may charge higher than what they’re used to. This supply shortage means businesses need to pay more, which could be reflected in the higher prices of products these days. 

Even the simplest products are now harder to find because of the current supply chain situation.

Supply chain problems are increasing risks.

Business is already risky, but add a pandemic to the mix and the risk just becomes a lot higher. 

A lot of businesses have closed down over the year because they couldn’t keep up with the sudden disruption in their routine and they also can’t afford to make drastic adjustments just to keep their heads above water. 

So, if you’re running a business in the middle of a pandemic, it’s very important to leap into action right away by finding ways to mitigate those risks before they hurt your business further.

Disruptions are shedding light on better supply chain options.

If there’s one huge lesson that this pandemic has taught businesses, it’s the importance of fostering domestic manufacturing so that supply chain disruptions won’t be as devastating in the future. 

One of the biggest causes of these disruptions is the limitation in travel due to the virus. 

With ports congested and ships scrambling to get to their destinations on time, you can expect some delays. But if you have local suppliers, you won’t have to go through these logistical challenges anymore.

Learn from the Current Supply Chain Problem Affecting Businesses

Experts predict that things will go back to normal during the first quarter of next year, but in reality, no one can really tell. If your business has been affected by the pandemic and the disruption of the supply chain, use the lessons you learned to improve the operations of your business for the future.