Disrupted supply chains are testing resilience and raising more questions
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Warehousing strategies in focus amid Suez Canal disruption
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Temporary impact on supply
But in terms of supply, any impact, Graham says, should be temporary. Current weak consumption and low demand for goods in Europe means that any knock-on effect is expected to be minimal.
“There’s still low growth in goods demand, which means goods and parts shortages are unlikely – and there’s little need right now for additional safety stock, with inventory levels outpacing demand,” Graham explains.
With demand for goods currently in a lull that has led to as much as a 20% inventory surplus, safety stock is not a big concern for the moment.
“Unexpected events disrupting supply chains continue to emphasize the need for both robust contingency plans and flexibility in logistics operations,” Graham concludes.