{"id":333,"date":"2020-04-30T06:41:40","date_gmt":"2020-04-30T06:41:40","guid":{"rendered":"https:\/\/www.tradeleaves.com\/blogs\/?p=333"},"modified":"2020-05-29T19:29:52","modified_gmt":"2020-05-29T19:29:52","slug":"covid-19-pandemiccovid-19-effect-on-supply-chain-impact-on-b2b-suppliers","status":"publish","type":"post","link":"https:\/\/www.tradeleaves.com\/content\/blog\/covid-19-pandemiccovid-19-effect-on-supply-chain-impact-on-b2b-suppliers\/","title":{"rendered":"COVID-19 pandemicCOVID-19: Effect on Supply Chain, Impact on B2B Suppliers"},"content":{"rendered":"\n

Consumer buying behavior is changing drastically due to the COVID-19 pandemic. As a result, businesses around the world are modifying their operations to reflect the changing landscape. In a time when thousands of workers are being laid off, some companies are expanding their labor force dramatically. The linchpin to business continuity in the wake of social distancing, government-mandated shutdowns, and shelter-in-place orders is ecommerce. B2B suppliers can help their business survive the current disruption and become better prepared for the next one through digital commerce.<\/p>\n\n\n\n

\"B2B-Suppliers\"<\/a><\/figure>\n\n\n\n

Massive Surges in Hiring to Meet New Consumer Demands<\/h3>\n\n\n\n

COVID-19 has forced countless restaurants, retailers, and other nonessential businesses to shut down operations. But people still need medical supplies, household products, and food. Grocery stores, pharmacies, and take-out restaurants are seeing huge upticks in demand. CNN reports<\/a> that companies like CVS, Walmart, Papa Johns, Instacart, and Amazon are planning to hire hundreds of thousands of workers in the immediate future. New jobs in delivery, fulfillment, and warehouse operations make up the bulk of the planned hiring.<\/p>\n\n\n\n

Buyer Behavior Dramatically Changed in Record Time<\/h3>\n\n\n\n

Neilsen has investigated buying behavior<\/a> as the COVID-19 pandemic has developed. They identified six thresholds that reveal spending patterns tied directly to the crisis. Early thresholds showed consumers stocking up on pantry items and medical supplies, leading to large supply-chain strains. Many essential daily supplies are out of stock in stores so consumers have turned to online shopping to meet basic product needs.<\/p>\n\n\n\n

Neilsen concludes that once this storm has passed, consumers will emerge from their homes and resume daily routines, but their behavior will be altered forever. There will be a new normal. Neilsen expects \u201cpermanent shifts in supply chain, the use of ecommerce, and hygiene practices.\u201d These shifts will impact B2B buying as well. Suppliers who are not set up to meet the new behaviors and expectations of their buyers will not survive.<\/p>\n\n\n\n

\"B2B-Suppliers\"<\/a><\/figure>\n\n\n\n

Expected Supply Chain Changes that will Impact B2B Suppliers<\/h3>\n\n\n\n

The COVID-19 pandemic is expected to cause changes in the supply chain<\/a>, establishing a new normal. Understanding what those changes will be can help suppliers better prepare themselves for this new normal.<\/p>\n\n\n\n