Supply Chain Hype in a Post Covid World

So the vaccines have started to show up. What will the post Covid world look like. There will be a lot of hype on a post Covid world. But focus on your markets characteristics before going with the flow.

You probably heard or read that big cities will die because there workers will continue to work remotely in post Covid world. If your market graphic are on high end income workers maybe the hype has some validity. But if your market are lower income people they will not have the resources to move. They will stay in the cities.

Another hype will be e-commerce will virtually destroy retail in actual structural stores. E-commerce will be one of the hardest to predict, because somewhere there is ceiling and when people can back into brick and mortar stories it will slow the rapid growth of e-commerce. Look at clothes bought on e-commerce which have a very high return rate. There is incentive to retailers to get people into their stores because it is more cost efficient and likely more profitable. Again, take the hype of e-commerce and look at your markets to see what they are doing.

The hype is everybody will want e-commerce goods instantly, like in 2 hours or same day at least. If you are Amazon that is your market. Maybe your customers will wait a few days if the product is unique enough or less costly to buy, Know your market.

The hype is everything in the supply chain will be digital and blockchain technology. Yes there are good uses and processes using digital technology and blockchain. Just be aware, there will be markets which will more sophisticated in technology than others, and maybe the low technology markets are your specialty. Even among big companies where they spend their capital dollars may not be on superior technology but other market needs. Of course technology can fail due to hackers or just plain bad programming. Your playbook should have a plan in place should that happen and yes, there is very, very high probability it will.

So enjoy the hype, but from your business or organization prospective pit a critical eye to it.

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