A short poll* by the Chartered Institute of Procurement & Supply has found that the disruption caused by Covid-19 will lead to permanent changes in global supply chains, as businesses look to adapt to new ways of working and managing the varying stages of lockdown around the world.

This global business disruption looks set to continue for some time, with 46% of businesses stating that it will take 12 months or more before supply chains return to pre-Covid levels of productivity.

The survey was conducted last month amongst global supply chains managers who were asked about the effects of lockdown and the pandemic on their businesses and in their region.

Respondents to the survey said that supply chains were being remapped and developed in reaction to new regulations as well as permanent and temporary lockdowns as countries navigated the waves of the pandemic. In fact, nearly two-thirds (62%) of global supply chain managers said they will seek new or alternative suppliers in order to rebuild their supply chains in the wake of the Covid-19 disruption.

These actions could cause a significant impact on global trade, with nearly a third (31%) also stating that they will reshore their operations in order to limit further international disruption and find new suppliers.

The impact also affected prices. Two thirds (67%) of global businesses reported having to pay more for goods and services as a result of the disruption, costs which may be pushed to consumers in the coming months.

As businesses reacted to changes day by day, CIPS asked about initiatives that may fall by the wayside as supply chain managers tried to protect their businesses in response to shifts in trade and other economic impacts. Sustainability initiatives were affected as 15% of businesses said they will no longer maintain their plans for sustainable supply chains due to the impact of Covid-19.

*About the survey

Conducted amongst global supply chain professionals, there were 112 responses and the survey ran between 17 June to 3 July 2020