New Zealand May Experience Another Wave of Supply Chain Disruptions
The COVID-19 epidemic has caused several disruptions to Aotearoa New Zealand's supply chains in recent years, including panic buying, reduced available manpower, and delays in production and shipping. Experts and industry practitioners are already indicating that additional disruptions are possible in the coming months.
The Supply Chain Risk Analytics Network (SCRAN) at Massey University recently released their mid-year risk outlook for Aotearoa New Zealand, highlighting several factors affecting the stability of New Zealand's supply chain may converge during the upcoming northern hemisphere winter, when the country's export season is in full swing. Lockdowns imposed by China's zero-COVID-19 policy have recently caused industry delays and port congestion. With winter approaching in China, similar lockdowns are expected to become more regular and extensive, producing major uncertainty in supply chains.
The ongoing conflict in Ukraine is driving up the cost of transportation, raw materials, and oil in Europe. Combined with winter energy demands, this leads to a sustained increase in costs and disruptions.
According to Dr. Carel Bezuidenhout, senior lecturer in supply chain management, supply chains are generally stretched due to slow shipping, tight budgets, and overworked personnel.
A container shortage in New Zealand might further complicate efforts to export Kiwi goods due to an imbalance between imports and exports brought on by a slowing economy.
By doing risk analyses and determining which of their partners may be most impacted by these circumstances, Dr. Bezuidenhout advises business owners who depend on supply chains to get ready for potential interruptions.