The worrying weaknesses of our Supply Chains
The current health crisis had at least one positive effect. It has highlighted the limits of our supply chains. And this is true whether for electronic chips or parts for cars or for food production. The Institute of Supply Management reported in its study from June 2021 that since the pandemic average lead times for inputs are at least twice what is normal. More precisely, US lead times increased by 200%, Europe by 201% and China by 222%. It must be stressed that electric components are facing the biggest supply chains constraints with lead times increasing from 16 weeks to over 52 weeks! The difficulties encountered by the British industry are made even worse by Brexit. It must be remembered that the EU is UK's largest trade partner. Brexit is clearly the cause of administrative red tape and of significant border delays. That said, this crisis also makes it possible to underline that it is fundamental for a state or a private company to diversify its sources of supply. In such a context the severe labor shortage of trucks drivers in many countries around the world can only exacerbate supply problems. In a nutshell we can see that today business is getting stronger but the supply chain is getting worse. Thats why many governments are putting in place plans that will allow the repatriation of basic necessities, including food and drugs.