Pressure Points
How COVID-19 has redefined
supply chain management
Like all of you, I can’t wait to get past this Coronavirus
pandemic and return to normal times. With multiple
FDA-approved vaccines, the end is hopefully in sight.
However, there are still certain practices we have adopted during
COVID-19 that will (and should) remain, such as more frequent
hand washing and increased cleaning and disinfecting.
As a result, cleaning and disinfecting products will remain in
high demand. Unfortunately, there will be other product categories
that have suffered from a decrease in demand and likely won’t
return to their previous production levels soon enough.
It’s not just product categories that will experience the impacts
of the pandemic, even after it ends. The entire supply chain has
been significantly affected by this public health crisis. The first
shocks to the supply chain came in Asia, as distribution channels
were disrupted and vulnerabilities were exposed, including
shortages of chemicals and packaging materials. Manufacturers
had already experienced burdens from tariffs and trade barriers,
and these combined challenges forced them to rethink how they
source raw materials to design and manufacture products. Manufacturers
and suppliers will certainly evaluate these processes to
identify challenges and opportunities in order to minimize disruptions
and be better prepared for the next crisis.
At the start of the pandemic, the Household & Commercial
Products Association (HCPA) was quick to provide input to the
Dept. of Homeland Security’s Cybersecurity & Infrastructure
Security Agency (CISA) to help ensure that our member companies
were recognized as “essential critical infrastructure” and
could maintain and expand operations. HCPA also collaborated
with the U.S. Environmental Protection Agency (EPA) and other
stakeholders to expand the availability of disinfectant products
and minimize burdens for sourcing raw materials. This has helped
supply chains run efficiently during a time when resources have
been limited and getting products in the hands of U.S. consumers
has been and continues to be imperative.
It’s critical for companies to understand their risks within the
supply chain. This requires a deep dive, beyond just the first and
second tiers, mapping out the entire supply chain, including various
distribution centers and transportation hubs. Additionally,
it’s essential that companies assess and understand the resources
and capabilities of each part of the supply chain. As many companies
face an evolving work environment, with many employees
working from home, both internal and external procedures need
to be reviewed to ensure that
these changes won’t disrupt
the flow of materials or
products.
Managing supply has
been a big issue throughout
the COVID-19 pandemic.
Understanding supply vulnerabilities
consumes significant
resources and may require an
investment in new or updated
technologies. While this may
seem like a big undertaking,
it pays off in the end to avoid
shortages and future disruptions.
While many things will
change as a result of the
pandemic, one thing that
won’t is the demand for safe
and effective products at competitive prices. Due to quarantine,
many consumers have shifted their purchasing behavior toward
e-commerce platforms rather than traditional brick and mortar
establishments. E-commerce adds another variable to the supply
chain that must be managed and kept running smoothly.
As supply chains become more complicated, transportation becomes
more critical. The efficient flow of materials is key, whether
it be raw materials to a manufacturer or finished products to endusers.
Investment in technology and procedures becomes even
more important, especially for products sold through e-commerce
channels since the “last mile” of logistics is even more complex.
Ultimately, proper transportation management is crucial to
ensure customer satisfaction.
The pandemic has wreaked havoc across supply chains, exposing
vulnerabilities and weaknesses. However, if there’s a silver lining
(which there usually is), COVID-19 has provided us with the
opportunity to review the entire supply chain, understand its risks
and take steps to improve it in order to make it more efficient and
avoid disruptions in the future.
To learn more about managing the supply chain or for more
information about HCPA, contact me at ngeorges@thehcpa.org.
Spray
10 Spray February 2021
NICHOLAS GEORGES
HCPA VP of Scientific
& International Affairs
ngeorges@thehcpa.org
Photo: Shutterstock/julia.m