Supply Chains In Pandemic Times

Supply chains in pandemic times

Introduction

In order to live up to the competition, most global companies and their supply chains have specialized in being complex, and their ability to adapt to meet the needs of companies have improved, but alsoThis implies that today they are more sensitive to the increase in costs, deliveries of deliveries and less flexible to sudden changes. Currently the standards and processes that make possible the proper functioning of supply chains and logistics worldwide led to previous years of improvement, 

Developing

In turn, year after year, it has been possible to minimize the risks and lost in these essential links of international trade to a significant amount. These standards and processes that make possible a proper functioning of the supply chain and logistics are always exposed to variations that may not always predict or anticipate. In finance and economy, predictions based on data and facts corresponding to the past are constantly made, this without visualizing those phenomena that are of low occurrence, but which, when they take place.

The impact and consequences are of great magnitude, and it is these phenomena, that no one had previously contemplated, the precursors of historical and transcendental changes in the economy and society. The black swan theory, developed by researcher Nassim Taleb, adapts perfectly to this case. “This theory is a metaphor that, in the economic field, describes those events that occur by surprise, that no analyst had planned or taken into account because, a priori, they were unlikely and that, for better or, generally, for worse, they endhaving a great impact and transcendental repercussions.

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The black swan Nassim taleb (the black swan: the impact of the highly unlikely). Pandemia gathers all the characteristics of this theory, which are based on the improbability of a fact (it is unexpected), on retrospective predictability and the impact that this phenomenon will cause (of great impact) and that is whythat many experts in the area catalog COVID-19 as the black swan of the new century, what many had not planned, but that could be avoided. For supply chains and international logistics, this black swan is assuming a restructuring approach.

It can affect global companies due to the redefinition of future supplies chains or networks. In relation to what was addressed, the supply chain crisis began with the closure of Chinese factories, which were mostly essential suppliers for the rest of the world, this deso one dominoes. This effect in turn caused a second crisis in world supply chains, specifically in Europe, South Korea, Japan and the US. UU. Without a doubt, the next challenge for those responsible for supply chains and world logistics.

conclusion

From now on, it is to avoid the collapse of world-world production. As a consequence of the above, flattening the breakup curve of supply chains and logistics processes themselves, it is considered something complex, however, not impossible. Companies must take into account the unpredictable magnitude of the pandemic and will also have to be agile in the search for alternatives, before scenarios that a link in the supply chain or a protagonist of the logistics processes can not be operational and where thekey will become reinvention and re-adaptability.