Photo by: Serjio74 / iStock
The problem of ‘broken’ supplies is actually facing the whole world right now. It started two years ago with the arrival of the pandemic, and now the situation has worsened. The obvious risks here are increased delivery times, increased logistics costs, but worst of all, reduced reliability of delivery in the agreed time. The latter prevents the production process from being set up properly, motivates companies to increase inventories to eliminate production downtime, and creates risks of default to end customers.
What can states do in this situation? At the very least, they can ensure the removal of logistical barriers, optimise customs procedures and support carriers (including rail, air and water transport and, of course, road carriers, given the maximum flexibility of the latter). Logistics has become more expensive and longer — if states have the opportunity to relieve logisticians of some financial and formal burdens, perhaps this will make life a little easier for everyone else as well.
Cover photo: Grigorev_Vladimir / iStock
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