A new report by GlobalData titled ‘Demographic Trends Impacting Supply Chains’ has highlighted the ongoing and increasing threat to supply chains since the Covid-19 pandemic.
The report establishes the impact of Covid-19 to supply chains as unprecedented. The pandemic mandated that businesses switch supply chain models, as many became simply unworkable. The need for home delivery of orders vastly reduced trade. Hence, in order to avoid losses, as the report states:
“Businesses shifted to a just-in case model […] keeping a minimal inventory.”
Since then, small-and-medium-sized businesses (SMEs) have combatted ongoing issues stemming from the pandemic, and solutions to supply chain disruptions have included dual-sourcing and digitalisation, designed to improve a businesses’ adaptability to disruptions.
In addition to Covid-19, the report also highlights other disruptions that have become apparent issues for SMEs. This includes the younger generations of consumers demanding more transparency with supply chains. These ethical and tech-minded individuals necessitate businesses move forward with eco-friendly initiatives and ethical labour, in addition to requiring smooth, efficient delivery of goods.
For small-and-medium enterprises, it is paramount that as a business expands, its supply chain maintains efficiency whilst bringing ethical concerns relating to the environment and labour to the forefront. Investing in a robust and ethical supply chain can ensure the future of an SME.
At AJL Finance, we are proud to uphold standards of efficiency and transparency with our processes, and we believe that SME business loans can ensure the same for enterprises, in spite of unpredictability to supply chains.
