Supply chain crisis

The crisis in the global supply chain is already more than evident and all the media are echoing it. The economic recovery is uneven, and while in some countries it is being reactivated in others, the lack of supplies is wreaking havoc.

The shortage of heavy vehicle drivers is causing bottlenecks that will be difficult to solve. Much of the product is staying in the factory, as it cannot get out due to transportation and supply problems.

This is causing large companies to start working directly with retailers in order to secure supply.

Faced with a fuel supply crisis due to a lack of HGV drivers Britain has decided to deploy some 200 military tanker drivers. 100 of them, drivers, will help to overcome the lack of truck drivers and assist in the delivery of fuel to petrol stations. (Source: Euronews)

Spain needs between 5,000 and 10,000 heavy-duty truck drivers. Defense and CEOE are agreeing on an agreement so that military personnel who are approaching retirement at the age of 45 can be incorporated as truck drivers given the shortage that is being experienced in the sector. (Source: defensa.gob)

Not only land transport is affected. Hundreds of ships are also suffering from this crisis and are blocked outside the ports. This is directly affecting the price of shipping containers, which has increased tenfold compared to the price before the pandemic.

Only in the United States, thousands of ships loaded with containers are waiting for dock space.

The circle becomes vicious, as delays for some lead to delays for others, ultimately affecting not only the supply of goods but also supplies worldwide.

If we add to the problems in supply chains the sudden shortage of chips, the impact on the real economy multiplies.

Chip shortages add to supply chain crisis

The shadow of Covid-19 once again wreaks havoc on daily life. The demand for telecommuting devices and various gadgets to make confinement more bearable sucked the chip market dry. Once again, it seems that the industry is not prepared for sudden changes in demand and now it is the automotive sector, among others, that is most affected by this lack of integrated circuits.

It's time to get in line to buy that electric car everyone is talking about or the new model of that cell phone we like so much. Chip manufacturers have reallocated their production to other sectors and it will take time to normalize the supply and organization of chip manufacturing 

Once again, supply chains are affected, with factories paralyzed, with a price increase and further delaying economic recovery, not to mention the major conflict between the three largest chip manufacturers: Taiwan, South Korea and the United States, and everything indicates that the American giant will soon be left at the tail end of the race.

Supply chain crisis due to a shortage of truck drivers coupled with unprecedented port congestion and a lack of chips is the nightmare that ultimately affects consumers, driving up the prices of all affected products. Moody’s Analytics has already warned:

“"Supply chain disruptions will get worse before they get better. As the global economic recovery continues to gather strength, what is becoming increasingly clear is how it will be hampered by the supply chain disruptions that are now popping up around every corner."”

What if supply chains were more robust, would we be prepared to deal with the current crisis? 

Thanks to the use of technology in logistics, good inventory management and improved warehouse management, outsourcing of logistics services and optimization of transportation, and above all, improved procurement management, we would avoid situations like the ones we are currently experiencing.