The Impact of the COVID-19 Pandemic on Manpower (Labor) and the Supply Chain

The Impact of the COVID-19 Pandemic on Manpower (Labor) and the Supply Chain

Alan D. Smith
Copyright: © 2022 |Pages: 13
DOI: 10.4018/978-1-6684-5250-9.ch005
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Abstract

The COVID-19 pandemic of 2020 has changed everything on a global scale. The lockdowns and general fear of the unknown caused a dramatic increase in ecommerce as buyers turned to the internet to get the goods and products they wanted. Many businesses had to close during this time due to lack of customers, lack of workers, and due to staffing issues due to the virus. As things started opening back up the demand for goods and services has been overwhelming to many industries. Ships are waiting off the coast for months to be unloaded, shelves are empty, the next day deliveries are taking days and weeks as the transportation system is overwhelmed. High demand and a lack of workers in every industry has led to a major global supply chain disruption that has not been experienced before. These disruptions affect every part of the supply chain from manufactures, warehouses, shipping, rail, truck, down to the retail level. This chapter will look at two companies in the Pittsburgh area (i.e., FedEx Ground and Ensinger, Inc.).
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Introduction

COVID-19 Economic Impacts

Walk into almost any store and you find empty shelves. Order something online from any of the major retailers and what used to be next day delivery may now be a week later and sometimes a month later. The shortages that are seen everywhere are painting a bleak picture for the holiday season. The labor shortages have been linked to the disruptions in the supply chain. This labor shortage comes at a time of high demand and effects every part of the supply chain. “Companies are facing sharply higher demand for goods and services, with sharply less labor availability, and substantial uncertainty about their ability to pass cost on their customers.” (Conerly, 2021, p. 4). With all parts of the supply chain impacted by this labor shortage the effects are widespread. The Global supply chain woes all point back to the lack of labor (Caminiti, 2021). Shipping cost have increased four to five times and transit times have increased three to four times longer than usual. (Caminiti, 2021). There are many reasons for the labor shortage but its impact on the supply chain is long lasting and impactful.

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