February 3, 2022 – With a supply chain that is still in duress, many of the quick fix solutions that policymakers are attempting to introduce could create more problems for an already complicated situation.
In order to emerge from the current situation, we need a better understanding of the root of the problem. The supply chain is facing challenges because of unprecedented demand during the pandemic, with every aspect of the supply chain being overloaded.
John Butler, an opinion contributor for The Hill, writes, “Here’s the reality that many politicians are missing when they shortsightedly dictate new regulations in the name of political expediency or out of frustration with the current supply chain challenges: Global trade is one interconnected network employing the same ships and containers in continuous service loops. You can’t favor one set of stakeholders without upsetting the balance of the entire system: delays would increase, service would be reduced, and the already-present bottlenecks would grow worse.”
Butler argues that instead of “knocking down a system that already running at max capacity, let’s find ways to make each part of the supply chain more efficient and resilient with better data sharing and optimization.” More than anything, companies need to know that regulatory frameworks are stable so that they can improve their part of the bigger supply chain.