One of the greatest things about a capitalistic society is that consumers almost always have access to the commodities they want. However, we often do not think about the complicated processes, with numerous individuals involved, that get us the food and goods we desire. Yet now there is a shift to this common phenomenon due to issues within the supply chain. These issues impact every aspect of the economy, whether it be food, electronics, cars, clothing or appliances – the list goes on. Oftentimes, people go to the grocery store and just see shelf upon shelf left empty. The supply shortage originated during the pandemic, where consumer demand decreased, thus causing factories to shut down and shipping companies to cut their schedules.
A variety of Colgate University students have commented on how they have seen the negative effects of supply chain issues in their own lives. First-year Georgia Sones worked at a retail store known as the Black Dog this past summer and commented on the hardships the store faced.
“This summer was worse than any other because we were out of magnets and stickers, two of our main items,” Sones said.
Another first-year, Billy Pahl, worked at a subway shop known as Bubs Subs, where the store is expected to have many options of toppings for optimal customer satisfaction.
“We went without lettuce, peppers, ham, turkey, American cheese and chips,” Pahl said. “Many regulars were outraged and threatened to stop giving their business. This had the potential to cause detrimental effects and potentially even lead to foreclosure, especially since the shop was a small business.”
A dysfunctional supply chain does more than simply deprive consumers of the goods they desire. Rather, the effects are larger in scope, causing more urgent issues that require immediate attention. For instance, a fertilizer shortage is causing starvation and hunger in parts of Africa and Asia, according to The New York Times. In economics, a shortage is defined as a point where quantity demanded exceeds quantity supplied. Because of this, farmers are unable to acquire a sufficient supply of fertilizer to grow their crops, thus decreasing crop yields. Consequently, the price of food is drastically rising and many are unable to attain sufficient nutrition. In Nigeria and 12 other countries, The New York Times reports that the price of fertilizer has more than doubled. According to a recent study published in the International Journal of Sustainable Agricultural Research, over 80 million people in Nigeria — or two-fifths of the total population — suffer from insufficient food consumption. These rapidly rising prices are also leading to crop theft, further distressing farmers. Moreover, the lack of wealth inhibits these individuals to spend money on education and college, which is vital to increase social mobility and escape poverty for low-income families.
Ultimately, the effects of a dysfunctional supply chain are seen both locally and globally. It is key to implement solutions to fix this issue. One solution is to shorten the distance through purchasing from a supplier that is geographically closer or reducing the time these goods spend in the supply chain before reaching the consumer. This will make the supply chain more efficient and reach the consumer quicker. It is vital to keep everyone in the supply chain in the loop, as communication is key for such a complicated process to work successfully. Targeting specific portions of the supply chain fails to solve the overall issue at hand; the entire supply chain must be addressed to come to a long-term solution.
