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Why Supermarket Shelves WILL Empty Even More – Corona Virus Impacts

As the effects of Convid-19 reverberate around the World it’s the Supply Chain strain that is now highly visible.

Locals report empty shelves in Australian Supermarkets for Rice, Pasta and of all things Toilet paper!

Is this just ‘panic’ buying or are there serious risks to the supply of everyday essentials here in Australia?

Rob O’Byrne, CEO of Leading Supply Chain Consulting Firm Logistics Bureau, who works with many of Australia’s major brands, is somewhat pessimistic.

“We’re really only just starting to see the effects of significant Supply Chain disruption globally” says O’Byrne.

Local Australian companies are reporting that reduced supply, and hence lower local stock levels, will start to cause major customer service impacts by mid to late March. This would seem to be in line with reports Globally.

So; what are the likely short and medium terms impacts within Australia?

O’Byrne is of the view that:

1. In the short-term we’ll see empty shelves of many consumer goods, though food staples should not be impacted as Australia produces 90% + locally. These will only be affected if population and transport movement come under restrictions.
2. The medium-term impact on local businesses could however be much more severe. The effect of this Supply Chain ‘Bull Whip’ will be to substantially reduce local demand and then as the Virus becomes controlled, consumer demand will be slow to return.

The overall effect on local businesses that don’t have the financial foundations to weather this Coronavirus ‘Bull Whip’ could be devastating.

Author and Supply Chain Expert, head of the Logistics Bureau Rob O’Byrne consults to hundreds of leading organisations in Australia and around the World, and has spent 40 years involved in Supply Chain, His clients include many of the major food producers, processors and retailers in Australia.