The Supply Chain
Crisis Won't Take a Holiday Vacation
Kate Strickland
In the midst of the holiday season, supply chain issues continue to plague consumers and businesses. Everything from presents to prescriptions will be affected.
Minor supply chain issues have been around for decades, but lately issues are impossible to ignore. This hurting system has ripple effects that impact our daily lives. Supply chain expert Dr. Glenn Richey believes most people misunderstand what the concept of supply chain actually is. A successful supply chain process is all about managing a consistent flow.
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"Generally, the thought behind supply chain management is connecting raw material extraction and manufacturing all the way to the consumer," said Dr. Richey, Harbert Eminent Scholar and Chair of the Department of Supply Chain Management. "It deals with all of those processes that develop the product and move the product from the point of origin to the point of consumption."
Disruption of supplies can be seen across all industries from fast food to medical equipment. Packaging and shipping companies are short on material and must cut down on the variety of boxes they offer. In addition, truck drivers and vehicles are scarce and in high demand. Products must go through multiple modes of transportations and check points to get to their destination, and at this moment that is proving to be very challenging.
Starbucks stores have experienced food and beverage shortages nationwide. Here is the sign on one of the store's drive through speakers.
Why is this happening ?
DR. GLENN
RICHEY
Harbert Eminent Scholar and Chair of the Department of Supply Chain Management explains the causes of the supply chain crisis while sitting in his Auburn Office.
"The pandemic and the lockdowns had a big impact on where we are today."
The Auburn Kroger had a limited variety of items to choose from.
A trip to your local grocery store could show you just how serious supply chain problems are. There is no doubt you will see many out of stock items. According to Dr. Richey, Publix had about 15 different items currently on rationing, meaning customers can only purchase one or two of these products at a time. Some of these items were not surprising considering the holiday season such as Turkey; however, other items were shocking.
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The Auburn Kroger on Dean Road was no exception. Many items were sold out, and a large number of shelves were almost completely bare. Perishable items such as meats and milk were in low supply.
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"There's a lot that we just can't get," said Jason Young, Kroger stocker. "If it's not the product, then it's labor issues or warehouse outages; there's always something."
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Kroger employees work tirelessly to restock shelves and reorganize products.
Shown above are photos of the bare shelves at an Auburn Kroger.
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A scarcity in food products may be an inconvenience to some, but for others it can be life threatening. The Food Bank of East Alabama is fighting to adapt to the new normal and continue to provide for those in need. Their systems, finances and staff have been challenged in ways they have never experienced.
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The Food Bank of East Alabama relies heavily on food donations from their local communities, from the food bank network, and from federal commodities. All of these food sources were heavily impacted by the pandemic. Local grocery stores stopped donating food since they were having challenges keeping their own shelves stocked, the food bank network experienced a huge drop in donations as well as transportation challenges.
The Executive Director of the Food Bank of East Alabama, Martha Henk, explained why the food bank is receiving less food donations. "I think there is a bit of a sense of panic when people see less abundant shelves at their local grocery stores, which sometimes leads to people trying to hoard products out of worry that food will run out," Henk said.
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Because donations have lessened, the food bank is having to pay for food products themselves. "I am concerned about how supply chain issues affect the people we serve, but I am optimistic in the sense that I am confident that we will do everything within our power to meet the need," Henk said.
The Food Bank of East Alabama volunteers work hard to package and distribute food to those in need.
Image is from Foodbankofeastalabama.com
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It is common to first consider food and retail when thinking of supply chain issues; however, the medical field has been hit hard. According to the Harvard Business Review, the pandemic has brought price inflation, nationwide shortages of critical medical supplies and personal protective equipment (PPE), and struggles for health care facilities. In October 2020, 70% of facilities were still unable to access one or more types of PPE.
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Information and statistics to make this infographic were used from a recent Kaufman Hall report.
The CityCare of Auburn Symbol Health Solutions Clinic is faced with an overwhelming number of challenges. Many items ordered from their supplier have been placed on backorder. Often patients' medicines are on backorder; however, the clinic is usually able to refer patients to a large pharmacy such as CVS.
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A lack of medical supplies is a much greater problem to deal with than prescriptions, which can usually be outsourced. The CityCare of Auburn Symbol Health Solutions Clinic has been struggling to make do without necessary medical supplies. "When we draw blood there is a certain safety needle we use, but we have not been able to get them in," said Kelli Holley, nurse practitioner of CityCare of Auburn Symbol Health Solutions Clinic. "Instead we are having to use equipment that is not as safe for patients."
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Pictured above is the CityCare of Auburn Symbol Health Solutions Clinic.
The state of the world may seem bleak, but the supply chain crisis will eventually die down. Dr. Richey, supply chain expert, assures that the world needs time to heal. Dr. Richey along with other experts are working on ways to respond to issues and adapt. He jokes that finding solutions to this crisis is like a game of Tetris. For example, at the ports space is a big issue. There is limited room for containers to be stored. Therefore they are trying to figure out where else to locate materials and place containers. "Best guess is this will all flush itself out by the first quarter of 2023," Dr. Richey said.