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St. Patrick’s Day: How Covid-19 Affects Your Supply Chain and the Economy
Every year come mid-March, close to 150 million people participate in St. Patrick's Day across the United States, according to U.S. News and World Report. Due to the devastating impact of Coronavirus (COVID-19), we will not be seeing the usual amount of Irish Cheer this year. Although there are polarizing opinions on how COVID-19 will impact global health in the long run, the impact on the immediate economy is undeniable. The recent cancellations of St. Patrick's Day celebrations (along with the NBA's suspended season, March Madness crowd control, universities offering only online classes after spring break, and the banning of inbound European flights) are just a few indicators of fear in the United States.
- St. Patrick's Day celebrations traditions of years' past, as of this week, large-city events in the U.S. are canceled:
- Boston (One million expected spectators)
- New York City (Expected 2 million spectators and 250,000 participants)
- Chicago (More than 400,000 expected to attend at the Chicago river)
- Dallas (125,000 person crowd expected to attend)
According to the National Retail Federation, St. Patrick's Day was expected to boost the United States economy by $5.5 —$6.0 billion in 2020. Besides the massive missed opportunity costs of St. Paddy's cancelations, questions remain on what do with orders that are already shipped and freight that is already delivered. The logistics industry must seemingly undo all of its planning efforts for the cities' Irish festivities, leaving many businesses in a complicated web of returns, insurance claims, and excess inventory.
One of the most significant St. Patrick's Day staples, Guinness Stout, started its journey to the U.S. months ago (some of the beers are still only brewed in Ireland). In mid-2019, kegs tagged for March 2020 distribution moved via ocean in 40-foot containers from Dublin to a deep-sea ocean port, like Amsterdam. From there, the containers were transferred to an ocean vessel for transport across the Atlantic to the United States. With many St. Paddy's Day celebrators moving their parties to their homes, beer sales will not hit March 17 annual averages. Kegs that have traveled between 3,000-8,000 nautical miles to the U.S. could be sitting in warehouses for a long time.
Depending on the industry, consumers may not see an immediate effect on their supply. While other sectors, due to consumer panic, may see shortages right away (gloves, face masks, hand sanitizer). Supply chain managers should be monitoring seasonal changes and adjusting inventory to keep their supply chain healthy and fulfilled.
Although no one could've predicted the global impact of this virus, take these as a best practice tips:
- Have a fluid supply chain with the ability to adjust
- Diversify your suppliers
If you need assistance in evaluating your supply chain contact Consulting@allynintl.com
Contributor: Alexandra Vikartofsky
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