Canadian rail workers and management are facing binding arbitration after the federal government intervened to prevent a labor stoppage, while port workers in the United States are calling for mediation to “push contract talks forward” ahead of a potential strike.
Labor issues are just one of many potential supply chain disruptions that are swirling right now. These disruptions affect individual businesses and entire industries, but there are strategies organizations can take to mitigate the impact of disruption and keep their supply chains moving forward. This week’s exploration of the headlines from around our industry highlights how today’s supply chain participants are building the resilience needed to overcome disruption.
If you’re searching for a supply chain orchestration platform that can help you proactively work around disruptions, we’re here to help. Get in touch to learn more about using Cargologik.
The Growing Importance of Contingency Planning
There’s uncertainty across the supply chain in 2024, partly due to disruptions like those mentioned above but also due to volatile rates, consumer demand, and capacity. Industry Dive recently held a virtual Supply Chain Outlook event that showed how supply chain participants are feeling the current dynamics.
One of the big takeaways from the event was an emphasis on contingency planning. We’re seeing this concept as shippers try to diversify their suppliers and overall supply chains so that they have ready-made alternatives when disruptions strike. In last week’s update, we wrote about Bangladesh's geopolitical issues and how they affect the apparel industry. Apparel companies are considering “Bangladesh-plus-one” strategies, so they will have contingencies if these challenges persist.
These geopolitical issues highlight just how widespread supply chain disruptions can be. While most of the headlines are focused on rail workers in Canada and port workers in the U.S., the apparel industry has been dealing with a significant challenge to continued supply chain operations.
Creating a Holistic Solution to Supply Chain Disruption
Supply Chain Brain looks at the issue of widespread disruptions and highlights how organizations should work on finding solutions. There’s an inclination to respond to each disruption individually, but that’s a mistake for one simple reason — individual responses leave supply chain participants in a constant reaction mode, scrambling to find a new solution with each passing disruption. A better approach is to “build true supply chain resilience” and “create long-term, holistic solutions that embrace the inevitability of disruption.”
The article goes on to share breaking down silos and implementing modern technology as two of the most important tasks in building needed resilience. Supply & Demand Chain Executive shared a similar message about the importance of building resilience as a permanent solution to the ongoing disruption issue.
How the Pandemic Shaped Today’s Supply Chain Priorities
In hindsight, the COVID-19 was an important testing ground for organizations. How would they respond to one of history's biggest supply chain disruptions? What technology would they need to implement? How should they mitigate ongoing risks and vulnerabilities?
Before the pandemic, shippers mainly focused on driving down costs while maintaining an acceptable level of customer service. In our post-pandemic world, the emphasis has shifted to building a competitive advantage through the ability to adapt to sudden changes. The goal now is balancing efficiency with resilience.
Embracing Digital Transformation
Digital transformation across the supply chain isn’t something for organizations to fear. In an era of “disruptions, economic uncertainty, and stringent new regulations,” digital transformation is a prerequisite for supply chain success. Organizations will find it impossible to deal with issues like product shortages and economic volatility without the right technologies.
VC Money Flows to Tech-Focused Supply Chain Firms
Need evidence that supply chain technology is growing in importance? Venture capital dollars are flooding into this space right now. A new report from Kearney, a consulting firm, shares that 15–20% of total venture capital investments are related to supply chain firms and technologies. An estimated $15.4 billion in investments has gone to supply chain tech vendors and tech-based 3PLs in 2024. Savvy investors know a growth opportunity when they see it, and technology in the supply chain sector is certainly an area of growth.
The Secret to Supply Chain Success
For organizations to be successful in today’s supply chain, they need solutions that are intelligent, connected, and built on data. In short, they need a technological ecosystem supporting collaboration, end-to-end supply chain orchestration, and visibility. The wave of disruptions across the global supply chain has pushed organizations to create these ecosystems while replacing legacy processes.
Starting Building Your Technological Ecosystem
For BCOs and LSPs looking to build an effective technological ecosystem, Cargologik is the single-source-of-truth platform designed to promote collaboration, orchestration, and visibility. The problem of fragmentation has hampered the global supply chain for too long. At Cargologik, our technology destroys silos so that supply chain participants can proactively respond to disruptions and more effectively manage the flow of goods and products around the world.
Ready to embrace technology as a solution to today’s supply chain challenges? Get started now.
