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Myriad Reasons Behind COVID-19 Supply Chain Disaster


An MIT Sloan Management Review article reports that more than one factor caused the COVID-19 supply chain perfect storm. First, consumers and businesses over-ordered goods due to concern about the length of the pandemic lockdown. This created heightened demand for everything from household gadgets to microchips. Second, manufacturers were unable to rapidly increase supply for reasons such as shortages of components, reduced workforce, and exorbitant shipping costs. Finally, the government providing emergency assistance to many Americans again fueled shopping, thereby further increasing demand. The authors suggest that the supply chain debacle may ease up during the second quarter of 2022. Click here to read more.

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