The world’s economy relies on the global supply chain to move products efficiently and smoothly. However, its collapse in the face of COVID-19 shows just how fragile it can be to disruptions. Thankfully, Samir Allen Farhoumand and other experts recently brainstormed some solutions. These long-term strategies may help minimize the risk of serious future concerns.
Samir Allen Farhoumand Provides Solutions to Supply Chain Problems
COVID-19’s impact was staggering because it affected things that many people did not predict. The global supply chain impact was tremendous. Samir Allen Farhoumand saw empty store shelves, food going to waste in storage, improper medical equipment availability, and rapidly increasing prices. The ultimate example of this problem was the shocking shortage of toilet paper that had everyone rushing to stores and even fighting for this product.
Unfortunately, these results were not surprising to anyone who understood the supply chain network. For years, experts have urged companies to improve their supply lines to minimize such dangers. As a result, the lines were stretched too thin, and disruptions could cause massive complications. Unfortunately, such fears were not addressed, so that when COVID-19 hit, the global supply chain nearly collapsed.
Short-term solutions, such as stockpiling, may help the economy recover. However, rapidly increasing product prices reveal that more must be done. Samir Allen Farhoumand advocates for a complete rethink of the global supply chain market. Rather than simply putting a bandage on a bleeding wound, he believes that complete renovations of the design and execution of this market must be handled to avoid long-term issues.
The first step is enhancing resilience in the face of potential disruptions. Resilience focuses on making sure that these collapses don’t occur again. They focus on expanding local networks, boosting domestic sourcing, and avoiding stretching supply chain lines too thin. For instance, rather than importing materials from across the globe, companies can utilize nearby items instead.
This process could include steps like paying slightly more for in-season food products rather than relying on cheap food shipped from across the world. Careful planning will be necessary in such cases. Samir Allen Farhoumand states that adequately planning and executing these steps requires forecasting demands and supplies. Improved prediction models will help enhance this process and minimize supply chain concerns.
Data analysis, in general, will help improve this process tenfold. First, companies must use short-term protection, like stockpiled stock, to minimize minor disruptions. Then, they must look ahead to the future to plan for potential concerns. For instance, many in the global supply chain market are already preparing for the threat of global warming and its impact on supply chain efficiency.