What Will Global Supply Chain Be Like In 2022?
Needless to say, the state of supply chains in recent years has been chaotic and unpredictable. A recent Statista survey found that nearly 72% of businesses are suffering detrimental effects related to the pandemic. So, what should you look out for in 2022?
The shutdown of major global ports and airports, largely in Asia and the US are continuing to impact businesses and consumers. Goods are piling up in storage which then impacts ships on the way to ports, leading to restricting of global trade flows and limited access to imported products. As a result, organisations are focusing on having more control over their supply chains by re-designing alternative supply chain flows, making inventory storage capabilities closer to customers, and improving last mile deliveries and returned goods.
2. Over reliance on one third party
Businesses are recognising the importance of identifying alternative trading partnerships as focusing on one major trading partner or supplier comes with an inherent risk.
3. Circular economies
Traditionally, linear supply chains have been sufficient in keeping the economy going, however, the circular supply chain is now gaining popularity. According to recent Gartner surveys, 70% of supply chain leaders plan to invest in the circular economy, while 51% expect their focus on circular economy strategies to increase over the next two years.
4. Doubling down on tech investment
Many supply chain managers have struggled in the last two years due to their lack of visibility in their supply chains. A lack of visibility makes it harder to react to disruptions and manage goods effectively, especially with current shortages. Therefore, companies are using advanced technology to become more responsive with increased visibility.
5. Production delays
Manufacturers are competing for limited supply of key commodities and logistical capacity which results in consumers experiencing empty shelves and long purchase lead times. However, this major disruptor has encouraged many companies to focus on supply chain evaluation and evolution by investing in long-term supply chain strategies, ensuring their growth for a new post pandemic normal.
Whilst the recovery from the pandemic presents new problems, these strategies should be helpful in ensuring business growth. The central solution to all of these issues is the digital transformation of supply chains which can improve visibility, sustainability, effectiveness and even reduce costs. Keep ahead of competition with a fool-proof supply chain which gives you the ultimate control over your goods with advanced tools and tracking systems. Are you ready to transform your supply chain? Contact us at firstname.lastname@example.org to book a free consultation call.
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