The COVID-19 pandemic has also significantly impacted manufacturers—causing raw material shortages, increased lead times for components, issues with logistics, and other sudden disruptions to their supply chains. One of the first major shocks was the shutdown of factories in Asia due to COVID outbreaks. It caused a global shortage of microchips, which are a key component of computers, smartphones, medical devices, and many consumer products. Ultimately, manufacturers were forced to scale down or delay the production of these products because of the shortage1.
In addition to supply chain disruptions, many companies experienced communication and productivity issues due to their reliance on email, spreadsheets, document-based applications, on-premises software, and other disconnected systems. As more employees started to work remotely, these systems created silos, making it difficult for product teams and supply chain partners to collaborate efficiently and stay on the same page.
In the wake of the COVID-19 pandemic, manufacturers have experienced product shipment delays, quality issues, increased customer complaints, lost revenue, and the inability to gain first-mover advantages.