![]() It is notably weak to unexpected shifts in demand because it requires extremely accurate demand forecasting to achieve the savings and economies of scale that are its main benefits. The lean manufacturing method relies on well-tuned matching between the raw material input and finished good output of production facilities to minimize the amount of products stored in warehouses and thereby save money on overhead costs. Įconomists pointed to lean manufacturing (also known as "just-in-time" manufacturing) as a major source of the supply chain disruption. To sustain production in 2021, the Vietnamese government required workers in higher-risk regions to live at their workplace. The country worked through the pandemic in 2020, with a strict lockdown procedure, but outbreaks in 2021 forced many manufacturers to close, especially as workers remained largely unvaccinated. Vietnam, for example, is a major provider of American apparel. New challenges in 2021, including the Delta variant and reduced access to the COVID-19 vaccine in developing countries, further exacerbated the recovery of global production even as the economies of wealthier, vaccinated regions, such as the United States and Europe, resumed their patterns of consumption. Despite rosy forecasts from businesses for the next year, global trade continued at a reduced capacity and did not fully recover. In early 2020, the COVID-19 pandemic initially slowed the global supply chain as manufacturers suspended work until safety precautions were enacted. Long tail effects of the supply chain crises are contributing to ongoing food security issues related to the pandemic, including the 2022 food crises. During the Christmas and holiday season of 2021, an increase in spending in North America, combined with the spread of the Omicron variant of COVID-19, further exacerbated already tight supplies. The related global chip shortage has contributed to the supply chain crisis, specifically in the automobile and electronics sectors. In cargo shipping, goods remained at port due to staffing shortages. Causes of the economic slowdown included workers becoming sick with COVID-19 as well as mandates and restrictions affecting the availability of staff. In 2021, as a consequence of the COVID-19 pandemic and the ongoing 2022 Russian invasion of Ukraine, global supply chains and shipments slowed, causing worldwide shortages and affecting consumer patterns. Global Container Freight Index, July 2019 – August 2022
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