In recent years, supply chain disruptions have become increasingly common, slowng global trade flows. Moreover, they are also creating challenges for economic stability. From natural disasters and geopolitical tensions to the Covid-19 pandemic, numerous factors have exposed supply chain vulnerabilities, highlighting the need for resilience and adaptability in the face of uncertainty. The Covid-19 pandemic has underscored the interconnectedness of the global economy and the fragility of supply chains. Lockdowns, travel bans and factory closures have disrupted production and distribution networks, resulting in problems such as shortages of essential products, delivery delays, and price hikes. These disruptions have occurred across industries, from automotive and electronics to pharmaceuticals and consumer goods, affecting businesses and consumers alike. Geopolitical tensions and trade disputes have exacerbated supply chain vulnerabilities, prompting companies to re-evaluate their sourcing strategies and diversify their supplier base. Tariffs, embargoes, and export controls imposed by governments have disrupted supply networks, resulting in increased costs and uncertainty for businesses engaged in international trade.
In response to the challenges, businesses are embracing digitisation and automation to increase supply chain visibility, agility, and resilience. Technologies such as blockchain and the Internet of Things (IoT) enable real-time tracking and monitoring of products across the supply chain. There is a growing recognition of the importance of collaboration and partnership among stakeholders in the supply chain ecosystem. Close coordination between suppliers, manufacturers, logistics providers, and regulators can facilitate information sharing, innovation, and contingency planning, enabling a more effective response to disruptions and crises. This may involve investing in infrastructure, promoting trade facilitation measures, and enhancing regulatory frameworks.
Supply chain disruption represents a significant challenge for businesses, policymakers and the global economy. By adopting innovation, collaboration, and proactive risk management strategies, the authorities concerned can build a more resilient and adaptive supply chain capable of withstanding future shocks and protecting global trade and economic stability. A stable supply chain is the backbone of global trade and commerce.
Meherunnesa Akhi
Student
School of Business and Economics
North South University
Meherunnesa.akhi@northsouth.edu