Supply Chain Tested During First COVID-19 Winter Holidays

As COVID-19 wreaked havoc on the country’s health, America’s supply chain was thoroughly tested. The toilet paper shortage that occured this spring was a testament to what could happen if product demand spiked. Analysts learned that the current manufacturing infrastructure isn’t as resilient as you might expect. In an economy where one-day delivery is common, retailers around the world found themselves facing unprecedented challenges.

As the first winter holiday season under the coronavirus, the supply chain remains a tough spot. On Amazon, many products feature a red notice: “will arrive after Christmas.” And while consumers are accustomed to one and two day shipping speeds, deliveries are experiencing slight delays at best. The U.S. The Postal Service recommended that Americans ship priority gifts no later than December 15th, but some experts consider this optimistic.

Still, there are other factors impacting the holiday supply chain due to the coronavirus. Distribution centers and sorting facilities need to be closed for deep cleaning while drivers and postal workers handle product day in and day out and are vulnerable to the coronavirus. As COVID-19 rates spike from state to state, any employee who tests positive must quarantine, for at least two weeks, and if they cannot be swiftly replaced in the interim, expect more stalls.

Moreover, as citizens across the country experience economic hardship and social distancing worries lead to heightened online shopping (in June 2020 alone, online shopping was up by 76% compared to the previous June), these concerns pave the way for a new holiday complication: porch pirates.

Porch piracy is the act of stealing another household’s package, and it's been on the rise since COVID-19. Less than 10% of stolen package reports lead to an arrest. Because of this, many thieves continue to operate and undetected and undeterred. As you might imagine, this causes individuals to contact the retailer and request a new product, further boosting the amount of packages that need to be delivered over the holidays.

The coronavirus highlighted the impact that disruptions can have on global supply chains. As COVID-19 spread across the country, the virus didn’t just affect the supply chain. Supply chains are defined by a company and dictated by their ability to supply and be supplied. But the coronavirus also affected the value chain; the set of activities that defines where raw materials come from and how they come together in each step of the manufacturing process.

The April toilet paper shortage occurred because the value chain as a whole had been affected. And not just in the United States, but globally. In Australia, one coffee shop started exchanging toilet paper in exchange for beverages. In China, a robbery occurred and the thieves left the registers alone, but took 600 rolls of toilet paper.

Moving forward, manufacturers, suppliers, and warehouse managers will continue to implement safer, more efficient labor practices. Efficient logistics automation will ensure that logistics providers can move products faster and cheaper. They’ll continue to incorporate game-changing technology like vision guided vehicles and robust warehouse management technology complete with useful integrations.

In the meantime, holiday shoppers should place orders immediately, plan ahead, and shop different suppliers to explore various shipping windows. Shoppers should also request deliveries be left in more secured, concealed spots when necessary and consider getting a low-cost porch camera as we inch closer to the end of the year.

This article does not necessarily reflect the opinions of the editors or management of EconoTimes