Are The Risks Of Global Supply

supply chain 2022

Given the importance of supply chains, it’s no surprise that many trends in supply chain management center around the improvement of the supply chain itself, with new business models gaining traction . Supply chain technology trends also heavily feature robotics, IoT, and blockchain, which are all projected to make the supply chain faster and less prone to disruptions .

supply chain 2022

Technology cannot operate in silos and it needs workers equipped with right skills and capabilities. Hence, supply chain and manufacturing operations need a blend of both physical and technological skills to sustain and grow at present and in the future. As supply chains move past the initial impacts of the pandemic, it’s likely that some organizations will quickly fall back into their old habits. But with trade tensions still present, it’s almost certain that vulnerabilities to the supply chain will remain and resurface.

Supply Chain

Organisations should rethink their approach to recruit and engage Gen Z, who will increasingly become part of the active workforce in the near-future. The motivations and aspirations of new generations should be considered to keep the younger cohort of workers inspired with a purpose.

supply chain 2022

Most recently, the war in Ukraine has renewed attention to the supply of raw materials such as metals, noble gases, and agricultural commodities. The big question is how all this complexity can be handled, particularly in terms of design, planning and execution. These challenges are new in many respects, so past experience cannot be relied upon to generate solutions. For example, a computer chip shortage had a knock-on effect across many industries. Concerns have also been raised about everything from lithium supply for electric vehicle batteries to restaurant food supplies to even coffee shortages. As shared in prior communications, we believe that 2022 will continue to be challenging from a material availability and inflationary standpoint. While there are some signs of recovery happening and some fears of a demand slowdown, it will likely be years before the supply chain fully stabilizes.

Crawl, Walk, Run: Developing Your Framework For Sustainability

Supply chain disruptions continue to be a major challenge as the world economy recovers from the COVID-19 pandemic. Furthermore, recent developments related to geopolitics and the pandemic could put further strains on global supply chains. In a January post, we first presented the Global Supply Chain Pressure Index , a parsimonious global measure designed to capture supply chain disruptions using a range of indicators. We revisited our index in March, and today we are launching the GSCPI as a standalone product, with new readings to be published each month. In this post, we review GSCPI readings through April 2022 and briefly discuss the drivers of recent moves in the index.

  • Rayon is a by-product of cotton, a finicky crop, and this is the third straight year that demand for cotton has exceeded production, says Sheng Lu, a professor in the Department of Fashion and Apparel Studies at the University of Delaware.
  • USDA also is supporting local production by investing $5 million through the People’s Garden initiative.
  • However, advancements in technology give business owners plenty of ways to optimize their supply chains to ensure everything runs as smoothly as possible.
  • Carriers, shipping lines, forwarders, and logistics providers can use the same platform to update companies and customers of the product journey.
  • Retail Respond faster with the real-time visibility and data insights you need for a smarter, more agile retail supply chain.

Supply Chain is an outcome-driven solution designed to support your organisation in addressing the challenge of organising a complex, dynamic supply chain. It helps you to better meet the demands of customers and respond to market changes, while striving to maximise efficiency gains both now, and in the future. A helpful jump-start to your digital transformation, enabled by technology and real-time insights. One can observe that many supply chain managers are currently troubled by a lack of visibility throughout their extended supply chains, as there are so many nodes and participants within the extended chain. Leading organisations are using advanced technologies to significantly improve visibility and thereby become far more responsive to major disruption and variability within their domestic, regional and global supply chains.

Thomson Reuters Products

And while issues affect various industry sectors in different ways, there are unique opportunities for pioneers to build resilience and shape the supply chains of the future. Although we cannot control the global supply chain issues, we will continue to be transparent and straightforward with you about the challenges and work closely with our best customers and vendors to navigate these unprecedented times together. If you have additional questions, please reach out to your Border States Account Manager for more information. Steel #ussexpress – The price increases seen in March/April driven by the Russia-Ukraine conflict have essentially eroded as most steel lead times are inching closer to pre-pandemic levels. Hot rolled coil steel — a good benchmark for the steel industry — is down 17% over the past 30 days, down 40% from August highs, but it remains nearly double pre-pandemic prices. Electric grade steel used in transformers and EV products continues to be an area of concern with limited domestic supply and increased demand for utility and EV infrastructure.

Industry Intel

But as important as it is to win day-to-day battles, companies also need to take advantage of opportunities revealed in our survey that can help improve their chances for long-term success. Many companies—58% of respondents—are seeing higher-than-normal turnover among supply chain employees, and only 23% fully agree that they have the necessary digital skills to meet future goals. In digitizing their supply chains, companies need the most help stretching their budgets, but having the right talent and the right tech are issues as well. Investor sentiment will react very quickly based on the perceived control an organization has on its supply chain. For example, talking in a positive way about sustainability and how they’re investing to increase diversity in their supply chains, can increase value. On the reverse, when a story breaks about a supply chain breach or a failure to deliver on client commitments, it can result in a significant reduction in the value of an organization. Many economists assumed that after a few months, Americans would exhaust their demand for products, allowing the supply chain to catch up.

Climate change advocacy groups and consumers’ growing efforts to be more environmentally responsible push the supply chain to become less harmful to the environment. Electricity and transportation hugely contribute to greenhouse gas emissions in the US, so green logistics are quickly gaining traction among many companies today. However, having these software solutions at your disposal is not enough to gain an edge over your competition. With the ongoing pandemic, a large number of SCM professionals reported experiencing disruption that forced them to change their strategies . These included having to adapt their supply chain for ecommerce, renegotiating contracts, as well as finding alternative sourcing options.

This is part of the digitization and automation of the supply chain, one that allows all of the processes to be digital. When optimizing delivery management, companies should focus on how they manage both fleets as a whole and the drivers individually.

Retail Supply Chains Were Made To Be Broken Will Brands Adapt

She’s an avid fan of the outdoors, where you’ll find her when she’s not crunching numbers or testing out new software. However, advancements in technology give business owners plenty of ways to optimize their supply chains to ensure everything runs as smoothly as possible. Augmented reality and virtual reality also ussexpress pose various possibilities in improving the efficiency of supply chains. Companies can also use these devices to enhance product development efforts by predicting potential product uses in a realistic setting. Artificial intelligence will also play an essential role in making supply chains more efficient .

As eCommerce continues to explode in popularity and the number of deliveries increases, brands need to stay on top of the global supply chain trends to stay relevant. Up to $300 million in a new Organic Transition Initiative to provide comprehensive support for farmers to transition to organic production.

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