Impact of COVID-19 on Supply Chain Management

Impact of COVID-19 on Supply Chain Management

Karem Esqueda works as a Head of Logistics at Country Road Group. In her role she is responsible for looking after all offshore DCS, international transportation, custom compliance, as well as all the last mile transportation.

What are some of the major challenges and trends impacting supply chain space?

During the COVID pandemic, there was a surge in demand for goods worldwide, but a lack of available vessels made it challenging to transport items across borders and meet delivery deadlines. Shipment reliability dropped to 16-17%, compared to the previous rate of 75-80%, resulting in longer transit times and businesses needing to adjust their schedules accordingly. As COVID restrictions ease, capacity, and freight prices are no longer a concern, but now merchants are struggling to find storage space for excess inventory due to a decrease in demand. 

Additionally, the impending inflation crisis is also affecting people.

What are some of your recent project initiative?

Due to the effects of COVID-19, we have changed our approach to logistics. Our focus is now on expanding our network and utilizing technology to provide visibility throughout the entire delivery process, from origin to final destination. By doing so, we aim to improve the overall consumer experience.

How do you envision the future?

Australia and New Zealand have managed to navigate through difficult economic situations better than larger economies, such as the United States and Europe, despite being affected by the global economy. However, it remains to be seen how well we will perform in the coming year, as many individuals have already gone through mortgage renewals and will face the reality of current interest rates. Since many individuals are still engaged in low-rate contracts, this is a crucial time to observe how demand will behave and how the economy will be impacted. On the other hand, the shipping industry is positioned effectively compared to pre-COVID periods, with idle capacity lingering at 15%. This should compensate for the cost increases we have dealt with during that time, as shipping lines carriers are lowering market capacity to try their best.

" It is very importance to carefully strike a balance between the relationship and the opportunity "

What would be your piece of advice for budding professionals in the field?

Striking a balance between maintaining relationships and seizing opportunities is crucial. It's important to stay updated with current events and keep an eye out for new products and innovations that can benefit your organization. Considering how rapidly technology is advancing, it's crucial to ensure that the technology you use is the most appropriate one.

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