Disruptions are the defining challenge of the modern supply chain. As BCOs, LSPs, and others look for ways to overcome the constant barrage of disruptions, the importance of strong relationships and collaboration comes into focus.
There are so many different parties involved in any given shipment. As disruptions emerge, those various parties must find a way to work closely to keep shipments moving forward toward on-time deliveries. Fragmentation has long been an issue across the supply chain, which is why so many supply chain stakeholders are now searching for single-source-of-truth platforms that can get everyone on the same page — while promoting the strong relationships and collaboration needed to overcome disruptions.
This week’s exploration of headlines from around the industry looks at potential disruptions in the near future, ongoing supply chain risks, plus the benefits of unifying data and closely coordinating with supply chain partners to overcome disruptions. If you’re in the market for a platform that delivers ROI, helps you collaborate with your partners, and creates outstanding customer experiences, get in touch with us at Cargologik.
This Week in Supply Chain Disruptions: Potential Port Strikes Plus China’s Golden Week
The potential strike across U.S. ports (expected to start Oct. 1) is dominating the headlines, but another event could create supply chain issues — China’s Golden Week, which runs from Oct. 1 to 7. This holiday sits right in the middle of peak shipping season, and it shuts down Chinese factories and production for an extended period.
Experts recommend shippers “communicate with suppliers and customers to assess the availability of goods and arrange shipment bookings at least one to two weeks in advance to reduce potential supply chain disruption.” The word “communicate” is 100% aligned with leveraging relationships and close collaboration across different parties to overcome supply chain disruptions.
Storm Season Intensifies
As if a potential strike and China’s Golden Week weren’t enough, we’re seeing signs that storm season in the Caribbean is intensifying. Just this week, two hurricanes are expected to make landfall in North America in a 72-hour period. There’s no telling where these twin storms will make landfall, which means ports along the U.S. Gulf and East coasts could be at risk.
Of course, as noted above, these same ports are already staring down a potential labor stoppage. This is another case of disruptions compounding, much like when missile attacks in the Red Sea made the Suez Canal impassable while drought conditions made it difficult to traverse the Panama Canal.
A Future Supply Chain Disruption?
Supply Chain Brain warns that the Strait of Malacca could be a future chokepoint that creates a supply chain disruption. Located between Singapore, Malaysia, and Indonesia, the strait is a passageway for about 30% of global trade.
This warning is good reason to build supply chain resilience across your organization. Resilience is a byproduct of many of the same characteristics mentioned above: strong relationships, close collaboration, and the ability to be proactive whenever disruptions of all kinds strike the supply chain.
How Regulations are Shaping the Supply Chain
New regulations are poised to reshape how BCOs and LSPs approach supply chain operations. We often read about coming sustainability regulations, but there are also regulations in place or on the way that are designed to prevent human rights abuses.
These regulations could soon impact the world’s battery supply chain. New research indicates that companies that account for 75% of the global battery market have “connections to one or more companies in the supply chain facing allegations of severe human rights abuses.”
These organizations will no doubt comply with these regulations, in large part because it’s the right thing to do, but it will take close collaboration and supplier visibility to reach full compliance. This is another area where modern technology becomes immensely helpful. With the right supply chain technology in place, organizations can collaborate with stakeholders to execute on these changes while building the visibility needed to keep tabs on suppliers.
The Struggle to Achieve Real-Time Visibility
New survey data indicates that global organizations are struggling to achieve the level of real-time visibility needed to effectively manage their supply chains. The challenge is harnessing the massive amounts of data now available to organizations, making sense of it, and getting it to frontline teams in the form of accurate insights.
The effective use of data in the supply chain can empower organizations to sense and forecast demand, optimize fulfillment and production planning, pursue ESG initiatives, and better orchestrate their global supply chain. Without the ability to harness this data, organizations risk missing out on new revenue opportunities and failing to reach peak operational efficiency.
A Platform to Orchestrate Your Global Supply Chain
At Cargologik, we deliver a platform designed to help orchestrate the supply chains of today’s BCOs and LSPs — with features for everything from visibility to document management. Are you ready to take control of your supply chain operations? Get started with Cargologik.
