In the conditions of the company’s crisis worldwide, they proclaimed the possible deficiency of materials, raw materials and components to avoid a possible shortage of materials, raw materials and components of the business, Itan Harris was noticed. The strategy on which the specialist indicates, reminds buying toilet paper in the supermarket, writes Bloomberg.
The publication reminds that last year buyers around the world literally swept this product from the store shelves: a sharp leap of demand created the visibility of the deficit.
“New technologies, such as tracking systems, allowed business to work with very small reserves. It is perfect in good times, but makes a system very sensitive to interruptions in the work. Worse, the company, facing a deficit, begin to double their orders, To ensure an advantage. For business sector, this is the equivalent of emptying the shelves in stores in front of a hurricane or the creation of gas and toilet paper in the first signs of deficit, “said specialist.
According to Harris, it is necessary to take into account the impact of the deficit of the supply of the economy, and not to assume that such activity is solely the result of demand. Bloomberg notes that Goldman Sachs specialists are also indicated on such regularities: Western economies are trying to create product reserves to protect themselves from price and deficiency fluctuations. Demand has greatly bypassed a proposal due to inconsistencies in the needs of consumers, paranoidly making orders, and supplier opportunities to increase production topics.
Previously, Bloomberg also indicated the supply system crisis, leading to failures in the global economy. The global growth in demand for products and equipment during the coronavirus crisis makes manufacturers feared the deficit of raw materials, and as a result of the current situation provokes a jump leap.