The Pandemic Has Led to a Considerable Impact in Supply Chains Across the Globe | Bruce Shibuya
All it takes is one company’s operations to impact the operations of many. Bruce Shibuya, previous Chief Operations Officer with Quanergy, has explored how supply chain management has been significantly impacted by the COVID-19 pandemic around the country.
One of the areas where Bruce Shibuya shines is through predictive analytics. He understands that there are real-time analytics that can be used to explore the health of a supply chain. When the numbers aren’t there, there’s a reason behind them. Rather than looking at the productivity of its employees, however, companies need to see how their supply chain has been impacted.
As Bruce Shibuya explains, there is often what is known as a bullwhip effect being seen across many companies. This is when forecasts result in supply chain inefficiencies. Customer demand is stronger than what the inventory can manage. This is being seen in a number of different areas, including toilet paper, hand sanitizer, and more. It leads to inefficiencies all throughout the supply chain – customer, retailer, distributor, and all the way to the manufacturer.
Bruce Shibuya is a huge proponent of telling customers what the buying expectations have to be in order to manage the supply chain more effectively. When people “panic buy,” it depletes the inventory that stores have had in order to achieve balance. It will also result in too many of a particular product down the road as people are, then, forced to use what they have hoarded before needing to buy again.
Bruce Shibuya Continues
Bruce Shibuya has suggested that it may take a while for the supply chain to stabilize. Much of this has to do with how some companies have had to slow down their operations because of not having enough healthy employees to work. Other companies have had to slow down operations because of where they obtain their supplies, including China.
When companies cannot get their raw materials, they cannot produce. When they cannot produce, distributors have nothing to distribute. It leaves store shelves empty and customers complaining. What little inventory is present is subject to higher prices because of supply and demand, as Bruce Shibuya explains.
Although the supply chains are being disrupted all over the globe, Bruce Shibuya has identified that there is a silver lining. Many companies are dedicated to helping people get what they need. As such, some companies have redesigned their productions to use other supplies to produce what is needed using JIT. Other companies are also changing the products they manufacture in order to meet the needs of American consumers.
Bruce Shibuya warns, too, that the supply chain may stay in a disrupted status for months to come.