Restructuring Global Supply Chain After the Covid-19 Pandemic

Written By 張志皓 Edited By Harry, Judy, 郭育均

(English Full Names, please!)

            The global supply chain crises are emerging and happening worldwide during the pandemic of Covid-19. As the Covid-19 has been deeply disturbing and hurting many companies around the world, some companies are concerned about restructuring their business partners' relationships. For example, many enterprises from the U.S. consider bringing their manufacturing factories back and reducing reliance on China. Based on the damage caused by Covid-19, companies must manage risks to prevent possible problems.

 To maximize profits, companies will consider their locations, transportation networks, and the workers' salaries. By combining these three points, the concept of an efficient global supply chain is formed--making a good product at the right place. With an efficient global supply chain, companies can gain benefits from better quality control and demand. For instance, companies need to ensure every product is checked before shipping them out overseas. If companies do not have any optimized or efficient supply chain, they may ship out defective products. Those companies are prone to lose profits after being charged with faulty products. Thus, companies should always optimize the global supply chain to maintain profits.

              On the other hand, some businesses and productions are frustrated so incredibly that the producers could no longer provide products to those who desperately need them. And this caused chain fractures. For example, Alberta, one of the Canadian beef processing places, has been impacted by Covid-19 seriously. Therefore, many workers lost their jobs, causing beef productivity to decline. Thus, the beef supply for retail, restaurants, and consumers has fallen dramatically. 

            Once the global supply chain has formed, the alternative cost will be relatively high. New companies would substitute for the old ones if the supply chain failed, resulting in irrevocable damage. During this pandemic, the stability of the global supply chain is more crucial than anything else. Thus, companies should not always consider the cost. Working together to maintain the global supply chain's stability is a pivotal move to prevent the world economy from entering a recession. It is also a fundamental solution to maintain the overall strength of the world economy.