What is a supply chain? And why it's a big problem in Florida

Toni Koraza

Photo by yanalya on Freepik

The media has been pondering on one phrase many Americans simply fail to grasp.

If you don't know what a supply chain is, don't worry. The majority of Floridians don't know what a supply chain is and why it's been a big deal in the last couple of years.

Most supply chain issues are invisible. Almost up to 97% of the supply chain is invisible to the company that sells the final product, according to NBS.

What is a supply chain?

Let's start with the basics. The below photo describes a form of a supply chain.

Image by David pogrebeshsky

For example, a mobile phone in your hand had to pass an entire assembly line before it became a functioning gadget.

The pieces that make the phone had to be sourced before making it to the factory or the assembly line. Before sourcing the pieces, someone had to invent the process and the machines that could put these pieces together into a working mobile phone. And even before then, someone had to excavate or somehow unearth and process the pieces.

And even before, before all of this could even start, someone had to invent processes and discover the resources needed to make your phone.

Let's fast forward to the end of the assembly line now.

Once the factory assembles the phone, someone has to organize transport routes that will deliver that device to your nearest shop or a warehouse. This can take several means of transportation, and it's often batched with many other products that are going to the same destination. All these products have to pass the customs.

If so-much-as a detail goes awry in this process, your order will be delayed. And if many orders get delayed, the shops will have fewer products to sell.

And if shops have fewer products, while the demand stays the same, then the price will increase.

Voila. You've got Florida's economic situation of today.

Supply chain issues affect more than just Florida. Every state and almost every country in the entire world has been suffering under a new economic reality.

We can expect this trend to continue for the time being.

Are you worried about the rising prices and food shortages?

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