Macrotech Marketing - Asia OutsourcingMacrotech Marketing - Asia Outsourcing
Menu
  • Home
  • About
  • Value
  • Services
    • Manufacturing
    • Engineering
    • Customer Support
  • Documents
  • Blog
  • Contact Us

Why Global Supply Chains Are in Chaos, and How Working With Macrotech Can Help

Global supply chains

Why Global Supply Chains Are in Chaos, and How Working With Macrotech Can Help

CategoriesGlobal Manufacturing / Planning / Supply Chain

December 10, 2021

0 0

Share this post

Global supply chain challenges have been in the spotlight often over the past year and a half, and are front and center once again, with the potential they have to upset the Christmas shopping season. You’ve likely seen the stories, felt the impact of shortages at your local markets, and experienced extraordinary lead times for items you were used to receiving within days. This has been an unparalleled disruption to industry.

So how is this different from previous supply chain disruptions, and what can be done to mitigate the effects of the chaos on companies, manufacturers, and consumers alike?

Supply Chain Disruptions Are Nothing New

While occasional supply chain challenges have been with us for years, previous disruptions were typically short-lived and contained to one sector. But the COVID-19 pandemic placed unprecedented stresses on supply chains, forcing many companies to rethink their global models.

As we discussed in our last blog post, the pandemic especially exposed the vulnerabilities of organizations with a heavy dependence on China for manufacturing and raw material needs. So when companies made the pivot out of China, many assumed it would relieve some of the pressure. With a typical disruption, it would — but this isn’t a typical disruption.

Similarly, many people have the mistaken impression that if we could only get U.S. ports operating 24/7 and trucks moving across the country, the shelves would be overflowing again. But this is a much larger problem than transport.

We are currently experiencing a global supply chain in which every sector is in chaos.

So What Has Caused This Unprecedented Disruption?

Most of the disruptions we are currently experiencing are a result of policies adopted to contain the spread of COVID-19. Pandemic-driven public policy has varied among local, state and federal governments, but the basics of central planning have been the same:

  • Determine which businesses are “essential” vs “non-essential”
  • Inject money into a floundering economy

While this approach brought some immediate relief at the onset of the pandemic, such central government planning is now aggravating the effects caused by the pandemic, making this an economic virus for which there is currently no cure.

The global supply chains — essentially a sophisticated web of interconnected businesses, created over the course of decades and responsible for modern productivity — were broken when entire sectors were forced offline. After weeks or months of inactivity from some suppliers, there is no way the supply chain can start humming again in weeks, months or, as we’re beginning to see, even years.

In the past, free market laws of supply and demand helped supply chains respond to unexpected challenges. During the pandemic, governments instead employed a strategy that has been termed “disaster socialism” by many. The thought was that the free market could not function under these conditions, so the government took control.

Negative effects were not immediately felt, since money was being infused into the economy, but this was short-lived. The consequences of shutting down entire sectors of the economy are now being seen in the form of a floundering supply chain. The private sector is best equipped to reconnect the disconnected web that is our current global supply chain.

Macrotech’s Solutions To Manage Disruptions to Global Supply Chains

At Macrotech, supply chain management and creative solutions to supply chain challenges are a significant part of what our team does every day.

We mitigate disruptions in the supply line by shifting sourcing and production, dual sourcing, raw material, and component stock programs. We are able to source materials from multiple continents, and pivoting production from country to country, with our clients’ approval, has kept their supply chains moving in instances of factory shutdowns, natural disasters, geopolitical unrest, transport blockages, and labor shortages.

Currently, our clients are benefitting from dual sourcing, often from sources in different continents. When possible, we have also pulled appropriate production onshore, but this isn’t always practical and is often impossible. A company cannot recreate their entire complex global supply chain in their backyard.

This is the benefit of working with a company like Macrotech: In the midst of the chaos of global supply chains, we are sourcing materials from our distributors all over the world. As a result, our clients’ supply chains are intact. Lead times have increased for some items, but nevertheless, production continues.

This isn’t the first supply chain issue we have faced, and it won’t be the last. When you entrust your OEM manufacturing solutions to Macrotech, you ensure your business will keep running even through the most difficult of supply chain challenges.

To learn more about how Macrotech can help your organization, schedule a call with us today.

Schedule a call

Tags: Global Manufacturing, Global Supply Chains, Manufacturing Processes, OEM commodities, Production, Production Control, Production Management, Sourcing, Supply Chain

Related Post

OCTOBER 22, 2022

How These Forces Are Working...

Ups and downs in the commodity market are expected, as this highly volatile market is...

00

SEPTEMBER 21, 2022

How the Current State of...

Whether you like it or not, geopolitical relationships affect business. No matter what...

00

AUGUST 18, 2022

Rising Rates and Sinking...

The current macroeconomic outlook is affecting our personal outlook, and manufacturing is...

00

JULY 11, 2022

A Guide to the Many Benefits...

Mass-produced cable assemblies can work well for simple applications. But if your...

00

JUNE 6, 2022

Our Experience Working...

As many can attest, it’s been a long 2 years since the COVID-19 pandemic changed the...

00

MAY 10, 2022

5 Tips for Hiring and Keeping...

Demand has skyrocketed as COVID restrictions have lifted and consumers are spending more...

00

Leave a Comments Cancel Reply

Archives

  • October 2022
  • September 2022
  • August 2022
  • July 2022
  • June 2022
  • May 2022
  • February 2022
  • December 2021
  • October 2021
  • September 2021
  • August 2021
  • June 2021
  • May 2021
  • April 2021
  • March 2021
  • February 2021
  • January 2021
  • December 2020

Categories

  • Company Culture
  • Design
  • Global Manufacturing
  • Hiring and Recruiting
  • Inflation
  • Marketing
  • Planning
  • Production
  • Supply Chain

Meta

  • Log in
  • Entries feed
  • Comments feed
  • WordPress.org
  • Macrotech Marketing Associates, Inc.
    Corporate Headquarters
  • +1-408-395-5030
  • Sales@MacrotechMarketing.com
  • 1999 S. Bascom Ave., Suite 700
    Campbell, CA 95008 USA

Copyright © Macrotech Marketing. All Rights Reserved.