LONDON – (BUSINESS WIRE) – May 21, 2020–
The impact of COVID-19 on global supply chains has been widespread in various industries with electronics, capital goods, commodities and retail companies all facing challenges from the reduced availability of raw materials. Talk to our analytic experts to learn how we can help you develop an appropriate plan of action to ensure business continuity in the midst of a crisis.
Over the past few weeks, US retailers and food industry players have struggled to ensure that the food supply chain remains strong given the unprecedented demand in recent weeks. The impact of the pandemic in the United States was so severe that it forced the government to impose strict bans and travel bans in an effort to level the curve. While the effects of coronavirus have been felt by all aspects of the economy, however food supply chain no exception. Experts point out that the food supply chain is one of the hardest hit segments in the US and has resulted in an acute shortage of certain product categories due to the widespread impact of supply chain disruptions.
How should businesses respond to minimize food supply chain disruptions and the effects of locking and other restrictions, you ask? Request a FREE proposal for insight from our analysis experts.
According to Quantzig supply chain analysis experts, “Governments and businesses must collaborate and develop effective policies to respond to these impacts to avoid supply chain disruptions, higher food prices, and severe economic collapse for millions of employees.”
How does COVID-19 disrupt the US food supply chain?
Based on our interactions with market leaders and decision makers at US food industry, we came up with 5 hypotheses that illustrate the impact of COVID-19 on the food supply chain in the US.
Responses to COVID-19 including social distance, travel restrictions, work from home policy enforcement, and logistical and transportation restrictions, are all ready to turn a health crisis into a global crisis that will have a disastrous effect on the economy.
# 2 Direct Impact on Food Production Sources
Global food supply chain disruptions are expected to exacerbate the current challenges faced by the agricultural sector that lead to food shortages and losses due to disruptions in consumer demand.
# 3 Increase in Prices of Food Products
Food supply chain disruptions tend to increase the cost of raw materials used in food processing units which leads to a surge in processed food products.
# 4 Food Retailers Will Still Be Unaffected
Because wholesale retail chains and food service companies have greater control over the safety and cleanliness of the food supply chain, they are far more vulnerable to mandatory business closures.
# 5 Downstream Food Supply Chains Will Face Irreversible Impacts
The downstream segment of the US food supply network will witness the biggest impact. This includes all small and medium-sized, labor-intensive companies with high labor densities placed in smaller work environments.
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Quantzig is a global analytics and advisory company with offices in the US, UK, Canada, China and India. For more than 15 years, we have helped our clients around the world with end-to-end data modeling capabilities to improve analytics for wise decision making. Today, our company consists of 120+ clients, including 45 Fortune 500 companies. For more information on our engagement policy and pricing plans, visit: https://www.quantzig.com/request-for-proposal
KEY WORDS INDUSTRY: LOGISTIC TRANSPORTATION OF RETAIL COMMUNICATIONS / MANAGEMENT CHAIN SUPPLY FOOD / DRINK PUBLISHING
Copyright Business Wire 2020.
PUB: 05/21/2020 09:14 AM / DISC: 05/21/2020 09:14 AM
Copyright Business Wire 2020.
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