Supply chain disruptions and lessons in the wake of Covid-19

With the appearance of the Covid-19, the logistics sector faces an unprecedented challenge, as the effects of the pandemic were strongly reflected in the disruption of the world’s supply chains, which are working at high speed to guarantee supply. of basic supplies.

Even though the social and economic effects of the pandemic are far from over, logistics company executives and decision-makers have paid special attention to the learning that the health emergency has brought and are analyzing what model supply chains should follow after the Covid-19.

Today, customers in the new digital age demand shorter delivery times and greater product disposition.

Furthermore, the emergence of the coronavirus revealed the weaknesses of economic models that have a high dependence on raw materials and manufacturing parts from Asian markets.

This was observed with China, the country that was the center of the global epidemic and one of the largest suppliers of inputs worldwide, which saw its export lines interrupted causing an impact on manufacturing, as well as on costs and the economy of industries, so supply chains were reconfigured seeking to create a more comprehensive proactive model.

According to Mario Aguilar, President of the Association of Logistics Operators of Mexico, the essence of learning in the face of the pandemic is that the intercommunication and interdependence with the rest of the world had not been reflected in a business contingency plan, for therefore, it had not developed since it was not considered that a situation such as the one being experienced could ever occur.

Recognizing this interconnection of the world and international trade may affect or be an opportunity for different productive sectors of Mexico.

On the other hand, with the closure of borders and the measures taken in China, many industrial components have been affected by the closure of production plants and the brake on imports, which means a blow to the industrial sectors.

How the pandemic has been faced in Mexico

In Mexico, as in other countries, the official declaration of the pandemic caused a reconfiguration of productive operations and new technologies have played a fundamental role so that, despite social distancing, supply and logistics chains continue to operate.

Therefore, collaborative culture and flexibility have been the keys to face the emergency, as well as carry out operations around supply chains and logistics virtually.

The Covid-19 and its consequences in the manufacturing industry

Exceptional measures taken to mitigate the spread of the coronavirus have also impacted freight transport and logistics processes. A fact that forces companies to reformulate their processes to find alternatives and generate a more comprehensive model, with less dependence on international markets through the flexibility and efficiency provided by new technologies, with alternative supply scenarios.

In Mexico, the manufacturing industry was hit by the logistical closure of China. According to a survey carried out by the National Council of the Maquiladora and Export Manufacturing Industry (Index), 45% of companies experience a lack of inputs from the Asian continent. However, some industries, such as the automotive industry, have sought to turn this disaster into an opportunity, so international clients in the Mexican manufacturing industry have begun to accept Mexican suppliers instead of Asian ones to keep operations active.

For many experts, the current situation is a time to assess the way in which supply chains have fragmented in recent years, in such a way that they have become almost totally dependent on a single region. Interdependence has been one of the great advantages of globalization, but it generates weakness in times of crisis and high costs for companies.

Against this background, Oradel is an industrial park with the objective of attracting international companies that seek to establish their manufacturing operations in Mexico by contacting high-quality infrastructure and ample land for the construction of industrial warehouses according to their needs.