Such interruptions could soon become more frequent for companies that source parts and products from around the world as climate change, and the extreme weather events that accompany it, continue to disrupt the global delivery system for goods in highly unpredictable ways, economists and trade experts warn.
Much remains unknown about how the world’s rapid warming will affect agriculture, economic activity and trade in the coming decades. But one clear trend is that natural disasters like droughts, hurricanes and wildfires are becoming more frequent and unfolding in more locations. In addition to the toll of human injury and death, these disasters are likely to wreak sporadic havoc on global supply chains, exacerbating the shortages, delayed deliveries and higher prices that have frustrated businesses and consumers.
“What we just went through with Covid is a window to what climate could do,” said Kyle Meng, an associate professor at the Bren School of Environmental Science and Management and the department of economics at the University of California, Santa Barbara.
The supply chains that have stretched around the world in recent decades are studies in modern efficiency, whizzing products like electronics, chemicals, couches, and food across continents and oceans at ever-cheaper costs.
However, due to increased outside disruptions in recent years, virus pandemics, wars, work stoppages and strikes, and a number of other factors, more and more companies are experiencing difficulties in their supply chains. The oversupply of products has caused prices to soar, fueling a worldwide inflation through. With the combination of factors, more and more companies are now looking for new suppliers to deal with the unknown risks ahead.
The European and American markets are the largest main markets for oxygen concentrators today, and during Covid-19, new market players were spawned – some Developing Country Markets such as the Indian market. These market players are inextricably linked to the Chinese supply chain. With the improvement of the epidemic, the demand for oxygen concentrators in the global market is not so urgent. And during the epidemic, dealers hoarded oxygen concentrators in large quantities and the whole market was oversupplied, resulting in oxygen concentrator manufacturers facing the double pressure of production and sales, and they began to look for opportunities to transform.
For companies that sell and maintain oxygen concentrators, it becomes especially important to find a strong partner to support their business in the future, and whoever can mobilize the resources of the entire market will be the king. Imagine: when your limited supply chain has problems, you have to spend more time and effort to find the next supplier, after layers of screening, getting one supplier, but the opportunity is fleeting. BENONI was founded to solve this problem, BENONI has a strong supply system to deal with the risks caused by changes in the environment, market, etc. BENONI has but not limited to the current supply system, it is still evolving and growing, iterating its supply chain system so that it can meet the different needs of different customers and cope with the risks while bringing greater value to its customers!
The impact of destructive weather events was widely reported and acutely felt, globally, the frequency of extreme weather events has increased significantly in the last decade, in particular concerning floods, storms, extreme temperatures, and droughts.
From world-wide government-mandated restrictions and industrial fires to natural disasters and extreme weather events, companies have to look ahead to supply chain horizons both with and beyond the pandemic.