Peter S. Goodman “How the Supply Chain Broke, and Why It Won’t Be Fixed Anytime Soon” The New York Times published Oct. 22, 2021.
(MI): why is the supply chain is broken and how did it happen and what are all the factors to why there are shortages of all products.
Supporting detail 1: Many factories were forced to shut down or were forced to reduce production because workers were sick or in lockdown.
Supporting detail 2: The steep surge in demand clogged the system for transporting goods to the factories that needed them. At the same time, finished products — many of them made in China — piled up in warehouses and at ports throughout Asia because of a profound shortage of shipping containers, the standard-size steel boxes that carry goods on enormous vessels
Supporting detail 3: At ports like Los Angeles and Oakland, Calif., dozens of ships were forced to anchor out in the ocean for days before they could load and unload.
PART 2: SUMMARY
The global supply chain crisis was caused by many factors that many people can’t see. The pandemic caused many issues with production and transportation. Many companies believed and predicted that due to the pandemic supply-demand would go down and they couldn’t see that demand would skyrocket. Manufacturing companies quickly started and attempted to ramp up production however transportation could not keep up with all the demand and ports also couldn’t move all the products that were coming in and out of the ports due to workers being sick and in lockdown. When Countries started to do lockdowns it strained to supply chain, even more, due to not having enough workers to move products. But on top of that more issues started to appear suddenly like how the Suez Canal gut blocked and caused a mass traffic gam and at the same time, a large sorting of cargo containers started to cause problems for companies. The world will have to deal with supply chain problems for the seeable future.
PART 3: REFLECTION
This article helps me understand the larger aspects of the global supply chain and how there are many parts to it and how if one part is slow or backed up all parts become slow and backed up. The global supply chain is a complicated assortment of manufacturing companies, transportation companies, and ports that move everything that we use and need however the pandemic caused mass causes that made it hard for all people the move and reserve produces. The supply chain has been pulled to its limits not just because of the pandemic but also because external issues have arisen that are causing delays and a mass backlog of products that can’t be moved.
PART 4: NOTABLE QUOTES
“This situation was worsened by the shutdown of the Suez Canal after a giant container ship got stuck there, and then by the closings of major ports in China in response to new Covid-19 cases.” (Peter S. Goodman)
“Many factories shut down or were forced to reduce production because workers were sick or in lockdown. In response, shipping companies cut their schedules in anticipation of a drop in demand for moving goods around the world.” (Peter S. Goodman)
“The steep surge in demand clogged the system for transporting goods to the factories that needed them. At the same time, finished products — many of them made in China — piled up in warehouses and at ports throughout Asia because of a profound shortage of shipping containers, the standard-size steel boxes that carry goods on enormous vessels.” (Peter S. Goodman)