New research has revealed 46 per cent of businesses say it will take 12 months or more before supply chains return to pre-pandemic levels and found that the disruption caused by Covid-19 will lead to permanent changes in global supply chains.
A survey by the Chartered Institute of Procurement & Supply has found that businesses are looking to adapt to new ways of working and managing the varying stages of lockdown around the world.
Global business disruption is set to continue for some time, with 46 per cent of businesses stating that it will take 12 months or more before supply chains return to pre-Covid levels of productivity.
The survey was conducted last month amongst global supply chains managers who were asked about the effects of lockdown and the pandemic on their businesses and in their region.
Respondents to the survey said that supply chains were being remapped and developed in reaction to new regulations as well as permanent and temporary lockdowns as countries navigated the waves of the pandemic.
“In fact, nearly two-thirds of global supply chain managers said they will seek new or alternative suppliers in order to rebuild their supply chains in the wake of the Covid-19 disruption,” the Chartered Institute of Procurement & Supply said in a statement.
These actions could cause a significant impact on global trade, with nearly a third also stating that they will reshore their operations in order to limit further international disruption and find new suppliers.
The impact also affected prices. Two thirds (67 per cent) of global businesses reported having to pay more for goods and services as a result of the disruption, costs which may be pushed to consumers in the coming months.
As businesses reacted to changes day by day, Chartered Institute of Procurement & Supply asked about initiatives that may fall by the wayside as supply chain managers tried to protect their businesses in response to shifts in trade and other economic impacts.
Sustainability initiatives were affected as 15 per cent of businesses said they will no longer maintain their plans for sustainable supply chains due to the impact of Covid-19.
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