Question

Do you agree or not agree with this information provide, Please criticlze by provide support reasons. 20 marks (from Six key trends impacting global supply chains in 2022 by KPMG)

2. Production delays
Production delays during COVID-19 have become headline news. Manufacturers are competing for limited supply of key commodities and logistical capacity, leading to empty shelves and long purchase lead times for consumers. However, it's not all doom and gloom. The pandemic has intensified the focus on supply chain evaluation and evolution with the industry evaluating and investing in long-term supply chain strategies to pave the way for a new post-pandemic normal.
The days of buffering inconsistent supply with excessive inventory at the lowest purchase cost are also quickly becoming a relic of the past as manufacturers evaluate risk as a key decision point in their supply chain development.

Through increased awareness and a need to maintain competitiveness, the industry is compelled to address many long-standing supply issues and re-engineer product specifications. Together, these are shaping more resilient and cost-effective supply chains that can position their respective organisations as leaders in this new normal.

Answer 1

Step-by-step explanation:

I agree with the information provided about production delays impacting global supply chains. Here are the supporting reasons:

1. Limited supply and logistical capacity: The COVID-19 pandemic has disrupted global supply chains, leading to shortages of key commodities and logistical challenges. Manufacturers are facing difficulties in procuring raw materials and components, which in turn delays production.

2. Empty shelves and long lead times: As a result of production delays, consumers are experiencing empty store shelves and longer purchase lead times. The limited availability of products has been a prominent issue during the pandemic, causing frustration for consumers.

3. Focus on evaluation and evolution: The pandemic has heightened the industry's attention to supply chain evaluation and evolution. Companies are re-evaluating their existing supply chain strategies and investing in long-term solutions to build resilience and adapt to the post-pandemic environment.

4. Risk evaluation in supply chain development: Manufacturers are recognizing the importance of assessing risk as a critical factor in supply chain decision-making. The traditional approach of maintaining excessive inventory solely based on lowest purchase cost is no longer viable. Risk evaluation helps companies mitigate disruptions and build more robust and reliable supply chains.

5. Addressing long-standing supply issues: The current challenges have compelled the industry to address long-standing supply issues that may have been overlooked or tolerated in the past. Manufacturers are re-engineering product specifications and supply chain processes to enhance efficiency and mitigate risks.

6. Resilient and cost-effective supply chains: The overall outcome of these efforts is the development of more resilient and cost-effective supply chains. By addressing supply chain vulnerabilities and implementing improvements, companies can position themselves as leaders in navigating the new normal and gaining a competitive edge.

Overall, the information provided highlights the impact of production delays on global supply chains and emphasizes the industry's response to these challenges, leading to the development of more robust and adaptable supply chain strategies.