SUPPLY CHAIN & LOGISTICS
The Lessons of COVID‐19 : Scarcity of Goods and Services is a Real Risk
The pandemic has revealed flaws in our supply chain .
Compiled by John Joseph Parker Contributing Editor
During the COVID‐19 pandemic , businesses , medical professionals and government officials have all struggled to maintain appropriate levels of goods and services . Whether ventilators and N95 masks or toilet paper and chicken , the supply chain has struggled to keep up with demand . In this interview , Penina Orenstein — an associate professor in the Department of Computing and Decision Sciences at Seton Hall University ’ s Stillman School of Business — addressed the significant role of supply networks during this time and the impact upon the supply chain in the midst of COVID‐19 . Professor Orenstein teaches both undergraduate and MBA-level courses in Quantitative Methods for Business and Supply Chain Management .
COMMERCE : What concerns should the average American have about the grocery supply chain today and for the long-term future ? PENINA ORENSTEIN : The grocery supply chain is a robust operation until panic sets in . And during the pandemic , food demand in retail locations was at unprecedented levels , and to the extent that we saw food shortages , it was largely a function of panic buying . However , the grocery supply chain has built in mechanisms for disruption . The question is can we re-distribute the supply to those that need it ?
Supply chain management is concerned with the efficient integration of suppliers , factories , warehouses and stores so that merchandise is produced and distributed in the right quantities , to the right locations and at the right time .
The question in a COVID‐19 environment is
“ Supply chain management is concerned with the efficient integration of suppliers , factories , warehouses and stores so that merchandise is produced and distributed in the right quantities , to the right locations and at the right time .”
what is right ? How much should be produced if there is panic buying ? What are the locations that are a priority ? What is the timeframe ?
As long as farmers are still farming , truckers driving , packages are being packaged , and therefore delivered , you still have a supply chain . As
Seton Hall University Professor Penina Orenstein
soon as there is a shutdown for any of these aspects , the supply chain will crumble unless steps can be taken to offer viable substitutes . The key is to keep all supply chain participants operational .
Q . A few years ago , you published a paper on the key drivers of future supply chains ? What are the key drivers pre- versus post- COVID‐19 ? A . The key drivers that were identified in the paper were big data giving way to fast data ; social media ; and knowledge workers .
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Food shortages during the early months of the COVID‐19 pandemic were largely caused by “ panic ” buying .
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Big consumer goods companies are trying to meet demands , particularly in the categories of food and nonperishable items .
Photo : Getty Images / iStockphoto