Companies should build more resilient supply chains to counter pandemic: professor
By Li Xiaoyao
Companies should consider the resilience and security issues of supply chains, as the vulnerabilities of supply chain systems have been exposed by the COVID-19 pandemic, John Gong, a professor from the University of International Business and Economics, told CGTN.
"Even though this kind of production value chain structure is very efficient, but it's not very resilient. It's highly susceptible to external shocks," Gong said. "Companies need to understand the vulnerability of this kind of structure, and build more resilient supply networks."
China's economy is deeply intertwined with the global markets, and Chinese companies are highly related to supply chain disruptions in the long run. Therefore, new technologies can be used to mitigate supply bottlenecks, according to Gong.
Shortages in the labor market are also one of the headaches following the outbreak of COVID-19, which is also a key factor leading to supply chain disruptions.
For example, the world's largest meat company JBS S.A. warns that labor shortages are holding back production growth, which is a key issue for global supply chain.
Meanwhile, the shortage of lorry drivers in the UK has brought serious fuel supply chain problems.
According to the report released by the International Labor Organization earlier this year, the global unemployment rate is estimated at 6.3 percent this year, which is still higher than the pre-pandemic rate of 5.4 percent in 2019.
The structural change in the labor market is taking place as the pandemic hits the market. The response to the structural change is not quick enough due to the time lag, said Gong.
"On the one hand, companies are looking for jobs. On the other hand, there are jobs not being filled, and that people are quitting actually."