Skip to main content
Industry News

What COVID-19 Taught Us About Using Capacity Buffers

By March 30, 2023No Comments

The COVID-19 pandemic ushered in a new era of turbulence in global logistics. And while the fallout from that event appears to be easing up, rampant supply chain disruptions continue. They’re up 32% year-over-year, according to Resilinc. Even large companies like Apple are struggling to get products onto shelves.

At the same time, consumer demand is on the rise, which means supplier lead times will likely become more erratic and unpredictable. One might assume that contract penalties will motivate suppliers to consistently deliver on time, but when that becomes physically impossible due to unpredictable events, no incentive can overcome them.