Empty warehouses, goods and materials cannot be transported


The problem of material shortages due to industry and production shutdowns in a pandemic year is beginning to be reflected in the supply and delivery times of various products across the market. In addition to shortages of chips, building materials and electronics, major furniture chains are also reporting half-empty warehouses. Moreover, the pandemic has clearly demonstrated the fragility of the supply chain that underpins world trade and the importance of logistics, especially in-house.

"Supply across industries is nowadays mostly based on the principle of just-in-time, so that individual products and components in the chain always arrive when they are needed in production or sales," says Roland Džogan, a supply chain expert from Ydistri.

However, reserves have virtually ceased to be used in this system. It's a system that runs like clockwork on the surface, but when outside intervention comes in, everything can fall apart in an instant.

"Unfortunately we see this in many industries and furniture is no exception. In my opinion, companies will start to rethink their approach and think more about safety stock and perhaps the availability of back-up suppliers in different geographic locations," says Džogan.