CHANGES IN THE SUPPLY CHAIN BY COVID-19

By G. Canales

We live a lot and very fast of change in various economic sectors in Mexico and worldwide. The stoppages of economic activities imposed by the health authorities cause the cycles of economic activity to be dislocated.

However, there are products that have to continue to reach consumers and others that prepare strategies to restart as soon as possible. What dynamics will such resuscitation have? Most likely one with higher inventories and shorter value chains. Well, in a long value chain, the chances of an incident happening somewhere on the planet are very high. Now it was everyone’s turn, but when the Fukushima incident in Japan, Japanese suppliers were unable to fulfill orders on time, affecting the downstream value chain. I recommend an article that appeared in the “Wall Street Journal (WSJ)” on April 13, 2020.

(https://www-wsj-com.cdn.ampproject.org/c/s/www.wsj.com/amp/articles/real-estate-firms- expect-coronavirus-driven-shifts-will-spur-warehouse-demand-11586806285).

Source: DOF.