A survey conducted by the Chartered Institute of Procurement & Supply (CIPS), found that nearly half of businesses believe it will take 12 months or more before supply chains return to pre-pandemic levels.
The CIPS survey found that the effects of Covid-19 could lead to permanent changes in supply chains, with nearly half (46%) of businesses saying it could take more than a year before the industry returned to pre-pandemic levels.
Nearly two-thirds (62%) of global supply chain managers said they will be seeking new or alternative suppliers in order to rebuild their supply chains in the wake of the Covid-19 disruption.
The survey was conducted in June 2020 amongst global supply chain managers who were asked about the effects of lockdown and the pandemic on their businesses and in their region.
Nearly a third (31%) of respondents said they will re-shore their operations in order to limit further international disruption and find new suppliers.
The pandemic impact has also affected prices, with two thirds (67%) of global businesses reporting that they have had to pay more for goods and services as a result of the disruption.
Sustainability initiatives have been greatly impacted, as 15% of businesses said they will no longer maintain their plans for sustainable supply chains due to the impact of Covid-19.