Organizations are starting to figure out how to thrive amid supply chain chaos. New Balance is a great example, as noted below. Regular supply chain disruption appears to be a new reality rather than just a rough patch to survive through. New Balance and others are embracing this new reality by establishing supply chain visibility and other modern tech — and by developing new business models.
This week’s look at the headlines includes the New Balance story, as well as updates on how communities, the federal government, and others are responding to today’s supply chain disruptions. Continue reading for all the details, and contact the Cargologik team to learn more about how our platform helps you overcome fragmentation so you can thrive in today’s difficult supply chain.
Disruption’s Impact Beyond the Supply Chain
The impact of supply chain disruptions goes well beyond supply chain operations. As the Baltimore Banner writes in the aftermath of the Francis Scott Key Bridge collapse, these disruptions can have serious implications for jobs and the economy at large. The Port of Baltimore alone generates nearly 40,000 jobs, $400 million in tax revenues, and $3.3 billion in personal income. Its importance to people and communities can’t be overstated.
Perhaps that’s why the White House has established a task force specifically “to address supply chain challenges in key sectors” that have recently experienced a mismatch in supply and demand. The industries most affected by the supply-and-demand fallout from supply chain disruptions include homebuilding/construction, semiconductors, transportation, agriculture, and food.
Recognizing Supply Chain Professionals
Forbes reflected on the importance of supply chain professionals on National Supply Chain Day late last month. The article shared today’s best practices that are allowing supply chain leaders to “stay ahead of the curve.” At the top of the list? Building visibility to enable agility. This article is just one of the many in recent months that have taken time to highlight the importance of visibility now and in the future of supply chain operations.
EY recently conducted an interview about this topic, stating that “end-to-end visibility is the key to ending supply chain disruption.” In the interview, Regenia Sanders, an EY Business Consulting Leader, said that end-to-end visibility “is the name of the game right now” and that “we’re seeing a lot of investment in digital and analytics in order to increase visibility.”
Supply Chain Disruptions Mean Higher Prices
As noted above, supply chain disruptions have consequences that echo across the global economy — including higher prices. Eco-Plastics in Packaging recently wrote about this dynamic, exploring how the crisis in the Red Sea has increased the prices of flexible packaging materials in Europe.
Higher prices make it harder for businesses to manage their margins. These businesses are often forced to pass higher prices along to their customers. The solution to reversing this trend is anticipating and mitigating supply chain disruptions. End-to-end visibility is the best way to lessen the impact of these disruptions right now.
New Balance Reimagines its Supply Chain
Supply Chain Brain writes about how New Balance has reimagined its supply chain operations in this age of disruption. The inciting incident for New Balance to explore new approaches was the six-day blockage of the Suez Canal in 2021, which had widespread implications for the global supply chain and economy. Emerging from that crisis, New Balance placed an emphasis on “people, process, and technology” that could help New Balance “respond to unanticipated challenges to the company’s supply chain.”
Now, as missile attacks in the Red Sea are making supply chain operations more difficult, New Balance’s new approach to shipping means that it hasn’t incurred “any significant increase in cost.”
Don’t Forget the Need for Collaboration
Visibility is undoubtedly essential to success in today’s supply chain, but collaboration is also important. Supply Chain Brain recently wrote about the role collaboration plays in driving more efficient deliveries within today’s transportation landscape. Today, customers expect fast and cheap shipping, and shippers are turning to third parties to help them meet these expectations. Without close collaboration, it’s incredibly difficult for these relationships with third parties to achieve operational efficiency and deliver outstanding cu stomer experiences.
The Need for New Tech and Fresh Business Models
It has been a difficult few years for supply chain, logistics, and transportation companies. During the tough times, the winners have been organizations that actively sought out and embraced new technologies and business models.
Transport Topics recently wrote about how new tech and business models brought “steadiness amid rough waters” to the logistics supply chain. The story highlights specific cases of how updated technology and business models helped companies thrive despite the chaotic supply chain environment they were operating in.
The Platform for Today’s Supply Chain Stakeholders
The Cargologik platform is designed to give BCOs and LSPs the single-source-of-truth platform they need for everything from visibility to document management. If you’re ready to embrace technology as part of your organization’s solution for supply chain disruptions, we’re here to help.
Get started now with Cargologik as the platform that drives supply chain success for your business.
