Supply-chain and warehousing expert from Industrial Logistics System, Martin Bailey, says the distribution mess that’s currently being caused by many countries going into lockdown to avoid the spread of coronavirus (Covid-19) could take at least a year to unscramble.
Commenting on the balance of supply and demand and how equilibrium has been thrown off kilter because of Covid-19, Bailey says “we create our own problems.
“Demand goes up because we create panic. Then, as we struggle to adapt, we over-compensate and end up with over-supply.
“Top that with an economy that is in trouble.”
For the time being though, all’s good for food distribution, Bailey adds.
As for retail, it’s a nightmare.
“Consider a clothing retailer with winter stock stuck between China and his warehouse because thousands of containers are in limbo worldwide. When they finally arrive, demand is poor because buyers have no disposable income.”
Making matters worse, says Bailey, is the dire position in which airfreight finds itself.
“There are thousands of aeroplanes stuck on the ground with no room to park. What if this continues for six months? I think it’s going to take a year to unscramble this mess.”