Supply chain complexity compounded by pandemic

The complexity of supply chains has long been known in the trade sector. The myriad producers and exporters that go into producing technical equipment, and how the end producer has no idea of what is needed at each step has often been commented on, but not much had been done about it. When the system was working, there was no need for change. 

But coronavirus changed all that. As medical products and equipment became in urgent demand, this lack of oversight became a real concern. When parts are shipping in from multiple countries, the local lockdowns that were enforced shuttered factories and closed borders. Parts were missing from the manufacturing process, or some became stuck, unable to be shipped. 

Recognising the problem, the process of mapping the supply chains began. The response saw agencies including the Asian Development Bank stepping up to begin the Herculean task of mapping out supply chains for essential equipment from end to end. The move identified the companies that were integral to the production of medical products and ensured they had the right support and financing provided to them to continue operating, and in some cases increase their output. With companies experiencing cancelled orders or late payments, there was a real risk some of these companies, which had become vital in the fight against coronavirus, could run out of working capital. 

This process has allowed the flow of medical supplies to continue, but brings to light the issues created by lack of oversight within the supply chain. In non-essential goods, production will remain slow as exports cannot easily be moved across borders. As lockdown eases across Asia and more factories reopen, this might provide a unique opportunity for companies to conduct a full audit on each stage in the production process to understand who is providing their products, and where they are coming from.