Internet to Remain Slow till Oct: PTA. How it Affects Supply Chain Industry?
The internet serves as the foundation for international supply chains in the current digital era, facilitating smooth communication, real-time tracking, and effective logistics management. On the other hand, disruptions to the internet can have a major effect on the supply chain sector, leading to delays, higher expenses, and interruptions to vital activities. The recent announcement by the Pakistan Telecommunication Authority (PTA) that internet speeds in Pakistan will remain sluggish till October serves to underscore the difficulties encountered by companies that primarily depend on digital connectivity.
8/28/20243 min read
How Internet Disturbances Affect the Supply Chain Industry: A Growing Concern for Pakistan
In today's digital age, the internet is the backbone of global supply chains, ensuring seamless communication, real-time tracking, and efficient management of logistics. However, internet disturbances can significantly impact the supply chain industry, causing delays, increased costs, and disruptions to critical operations. Recently, the Pakistan Telecommunication Authority (PTA) announced that internet services in Pakistan will remain slow until October, further highlighting the challenges faced by businesses that rely heavily on digital connectivity.
The Impact of Internet Disturbances on Supply Chains
1. Disrupted Communication and Coordination:
The continuous communication of suppliers, manufacturers, distributors, and customers is essential to the supply chain. Communication problems brought on by internet outages can impede decision-making, shipment coordination, and inventory management. For instance, a trucking company may experience delivery schedule delays and unhappy clients if it is unable to interact with its drivers in real-time.
2. Delays in Real-Time Tracking and Monitoring
Real-time monitoring systems play a critical role in modern supply chains by enabling firms to keep an eye on the flow of items. Tracking systems may become unreliable due to internet outages, which would keep companies in the dark regarding the whereabouts and conditions of their products. Longer lead times, missed delivery windows, and missed sales chances can all be caused by this lack of visibility.
3. Compromised Data Exchange:
Large volumes of data are exchanged during several supply chain processes, including purchase orders, shipment notifications, and invoices. These exchanges can be slowed down or stopped by internet disruptions, which can cause bottlenecks and delay important procedures. This may result in overstocking, a scarcity of inventory, and higher operating expenses.
4. Challenges in Digital Payments and Transactions:
Nowadays, a sizable portion of supply chain activities, including order confirmations and payments, are done online. These transactions may be delayed or fail entirely due to sluggish or inconsistent internet service, which puts a burden on a company's cash flow and finances.
5. Increased Risk of Cybersecurity Threats:
Disturbances in the internet might also reveal weaknesses in a business's digital infrastructure. Businesses may not receive timely updates or patches when connections are erratic, which raises the possibility of cyberattacks. This presents a serious danger to operations and reputations in an industry where data security and integrity are essential.
The Situation in Pakistan: Internet Slowdowns Until October
The recent announcement made by the Pakistan Telecommunication Authority (PTA) on the slowdown of internet services in Pakistan till October has introduced an additional level of difficulty for supply chain managers around the nation. This prolonged period of disruption is probably the result of required infrastructure upgrades or maintenance, but it has serious ramifications for businesses, especially those in the transportation and warehousing industries.
Strategies to Mitigate the Impact
1. Diversify Communication Channels:
Businesses should diversify their communication channels in case there are any disruptions to the internet. In order to maintain communication, it can be helpful to combine digital technologies with more conventional techniques (such radios and landlines).
2. Invest in Redundant Systems:
The danger of internet disruptions can be reduced using redundant internet connections, such as satellite internet or numerous service providers. Having a backup plan guarantees that vital operations won't be seriously disrupted.
3. Enhance Data Management Practices:
Effective data management techniques and routine backups can help guard against data loss during internet disruptions. Using cloud services that provide offline functionality or are less impacted by regional internet outages is another way to do this.
4. Proactive Customer Communication:
Customers should be informed by supply chain managers about any potential delays and the steps being taken to minimize them. During times of upheaval, transparency can contribute to preserving customer happiness and trust.
Conclusion
The PTA's statement that Pakistan will have poor internet connections till October serves as an upsetting reminder of just how important digital infrastructure is to the supply chain sector. Companies need to be proactive in reducing the effects of these disruptions so that, in spite of the difficulties, operations run as smoothly as feasible. Businesses can protect their supply chains from the erratic nature of internet connectivity in Pakistan by planning ahead and investing in backup plans.
The goal of adjusting to these changes is to create a more robust supply chain that can withstand any kind of storm, digital or not, rather than merely getting over short-term obstacles.