(USA Features) A supply chain expert told Fox News’ Tucker Carlson on Thursday that “panic buying” due to the creeping spread of the coronavirus (COVID0-19) is creating current “short-term” shortages.
However, Daniel Stanton, the author of “Supply Chain Management for Dummies,” said that American consumers are bound to face longer-term shortages of products they “want to buy” because the manufacturing process to make them has been disrupted by the outbreak.
Stanton assured Americans that current shortages of goods like toilet paper, masks and hand sanitizer are not a supply chain issue but a matter of stores running out of stock due to a crush of demand.
“People buying a lot more of some things than what they would normally consume and buying less of some other things, and what that does is creates what we call a bullwhip effect that gets amplified upstream in the supply chain and causes all kinds of chaos,” he said, according to the Daily Caller.
These shortages are “temporary,” he explained, but preclude real shortages of other goods due to virus-related production declines mostly in China, where COVID-19 originated.
“There are other things that we are actually using more of. I think disinfecting wipes, hand sanitizers, the hospital masks. We need more of those than what we would normally consume,” he said.
“For those things, we need to be increasing capacity, maybe creating some new supply chains, and in a lot of cases, we are dependent on foreign manufacturing and long-distance transportation to get those supplies.”
Stanton further noted there are likely to be some eventual economic roadblocks ahead caused by the coronavirus’s effect on the global supply chain.
“That’s the part that I’m really scared about, right?” he told Carlson. “We talked about the short-term demand disruptions but we’ve got supply disruptions too. Factories in China that haven’t been making things or haven’t been able to ship things, and those go into all kinds of things we buy, electronics, automobiles, basically any type of engineered manufactured product.”