New Survey Reveals Impact of COVID on Supply Chain was prepared for client AFFLINK
The first two surveys were published in March and April 2020. This latest survey was released towards the end of July 2020.
The study involves 675 managers, directors, and vice presidents involved in U.S. supply chain management and manufacturing.
Half work for companies making under $500 million in annual revenues. However, some have annual revenues of nearly $10 billion.
“Overall, it shows supply chain disruption is still impacting many industry sectors,” says Michael Wilson, vice president of marketing and packaging for AFFLINK, a leading sales and marketing organization for the jansan, healthcare, packaging, and related industries.
“While Healthcare, Food and Beverage, Tobacco, and Computer and Electronics sectors are doing well, most others continue to be negatively impacted by the pandemic.”
Among the latest ISM supply chain findings are the following:
- 97% say they have or will be impacted by supply chain disruptions.
- What were termed “severe disruptions” are reported in the U.S., Mexico, Canada, Japan, South Korea, and “most particularly,” China.
- Average lead time – the amount of time between ordering a product and its delivery – has improved but still lags pre-COVID operations.
- 77% say it is taking longer to get products from Chinese manufacturers.
- U.S. domestic manufacturing is operating at 74 percent of normal capacity; Chinese production is at 76 percent of typical capacity.
- Most respondents say they have enough inventory to support current operations. However, confidence this will continue is on the decline in the U.S. (64 percent), Mexico (49 percent), and Canada (55 percent).
- Most respondents report they are delaying hiring new staffers; 31 percent will reduce work hours, and 27 percent will decrease headcount.
“While the survey did not specifically address the jansan industry, we know many of the components and equipment used in cleaning are made in China and Europe,” adds Wilson. “Because of this, cleaning professionals might experience delivery delays for some products.”
Editors please note: The word “AFFLINK” is always capitalized.
AFFLINK (http://www.AFFLINK.com/) is the global leader in supply chain optimization, providing clients with innovative process and procurement solutions to drive efficiencies in today’s leading businesses. The ELEVATE process is the only knowledge portal available offering clients customized product process and supply chain savings that help organizations uncover never-before-seen opportunities that enhance their overall image, promote a healthier workplace, decrease total costs, increase productivity, and satisfy Green and sustainability objectives.
Michael Wilson, vice president of marketing and packaging
1400 AFFLINK Place
Tuscaloosa, AL 35406
Media Contact: Robert Kravitz