The Global Supply Chain is in Chaos

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The global supply chain is in complete disruption because of the pandemic. Localized incidents often happen that cause shifts, but this was on a worldwide scale. Supply chain expert David Beaird of Beaird Solutions spoke with Tyler Kern about the impact and aftermath.

“We’re about to see a global reopening where demand is going to explode, but there’s still limited capacity.” – David Beaird

“As a global economy, COVID was a once in a lifetime event. There was supply shock for companies that produce and demand shock from those that consume, with boats and trucks trying to balance it,” Beaird said.

Beaird noted that the shocks aren’t over. “We’re about to see a global reopening where demand is going to explode, but there’s still limited capacity.”

The port in LA is backed up due to many factors, including local regulations that drive labor and processes. These are all mini storms reverberating from the pandemic. Additionally, consumers were already changing how they get goods and services via digital channels. They had even greater adoption in the last year.

Beaird foresees probable scarcity, which the country hasn’t seen since World War II. “It’s about to be not there,” he said regarding goods.

Beaird offered some remedies that he’s providing to his clients. “Get freight to other ports besides LA because it’s going to take longer than a month to clear stuff out. Also, add more to your lead times.”

He finished with two other points. “You can expect to pay a premium from carriers, but they shouldn’t gouge up because you’re going to have the advantage in the second part of the year.”

His strongest takeaway related to decoupling from the global supply chain and bringing more manufacturing back to the U.S. “We can no longer rely on host nations across the world because they can see that not shipping to us can stifle the American economy.”

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