There’s plenty of evidence that supply chain technology investment is essential if shippers and others want to streamline their operations in the modern age. The latest evidence: Big shippers are announcing big investments in supply chain tech.
That’s just one note in this week’s rundown of headlines from across the industry. Keep reading to learn more about the big shippers making big investments, the permanent volatility to come in the future, the latest on global supply chain disruptions, plus more.
Interested in a supply chain platform that supports everything from visibility to document management? Get started with Cargologik.
Big Shippers are Making Supply Chain Tech Investments
Many large shippers have realized the need for additional investments in supply chain operations, especially in technology that powers supply chains. JCPenney, for example, has committed $40 million toward supply chain upgrades, including “state-of-the-art technology designed to streamline and enhance the supply chain process.” New Balance has made similar investments to achieve the level of visibility needed to thrive in the modern supply chain.
Fast Company covered many of the same themes in a recent article, stating that the “supply chain of the future is less about warehouses and more about technology.” Fast Company suggests that tech is key to the supply chain roadmap of the future for improved connectivity, partnerships, and network optimization. Without the right technology in place, supply chain participants, BCOs and LSPs included, will continue to make mistakes that cost them time and money and damage the customer experience.
Prepare for Permanent Supply Chain Volatility
Are you ready for permanent volatility in the supply chain? That’s the gist of the new State of Logistics Report published by the Council of Supply Chain Management Professionals (CSCMP). How should BCOs and LSPs respond to this new reality? It all starts with visibility and orchestration.
We recently wrote that events like the Houthi missile attacks in the Red Sea and the drought conditions around the Panama Canal have shined a light on the importance of visibility and orchestration. While the Red Sea crisis and Panama Canal drought issues may dissipate over time, other disruptions will continue to emerge (as the CSCMP report suggests), and supply chain participants will need technology that provides constant vigilance and support as they try to overcome these disruptions.
The Latest in Ongoing Supply Chain Disruptions
Do you need evidence that supply chain disruptions will continue to have a huge impact on businesses across all industries? McDonald’s has stopped serving french fries in South Korea due to ongoing supply chain issues. Supply chain disruptions are currently costing Singapore $2.6 billion annually. And the FDA is telling its providers to prepare for ongoing supply chain disruptions.
The supply chain used to exist in a more placid environment where disruptions did occur but did not have the far-reaching impact they have today. If BCOs and LSPs continue operating with fragmented supply chains and technologies, they risk failure in the increasingly challenging supply chain landscape.
It’s Time to Diversify Beyond China
We recently wrote about the new trade patterns emerging as the global supply chain reshapes. Deteriorating U.S.–China relations are a big reason why organizations are moving away from China as a manufacturing hub and choosing nations with better U.S. relations or closer proximity to the U.S.
Global Trade Magazine followed up on this thread recently, writing that it’s imperative to diversify beyond China to achieve supply chain resilience. The article states that diversification is key to “mitigating supply chain risks and enabling companies to adapt to dynamic market conditions.” We also recently wrote about persistent supply chain disruptions and how we’re getting better at managing them. Diversification beyond China could be one piece of the puzzle of managing supply chain disruption in the future.
Obstacles to Improved Supply Chain Processes Remain
Yes, we’re getting better at managing supply chain disruptions, but obstacles remain to improving supply chain management overall. A recent Supply & Demand Chain Executive article shared six obstacles to improved supply chain processes, including a stark lack of collaboration.
The lack of collaboration among the many supply chain stakeholders is one of the foundational reasons we developed the Cargologik platform. The supply chain has become too immense, complex, and chaotic for these stakeholders to operate in silos. Our technology creates a centralized hub where all stakeholders can closely coordinate to ensure that shipments move efficiently toward their end destinations.
The Need for Customer-Centric Supply Chains
Supply chain operations are no longer a department siloed inside a larger business. They now have a huge impact on the bottom line across all industries. With that reality in mind, The Loadstar writes that “customer-centric” supply chains are quickly becoming a make-or-break factor in business success.
With customer expectations increasing with each passing year, the supply chain is the lever organizations can use to meet these higher expectations.
Prep for Our Volatile Supply Chain Future With Cargologik
We designed Cargologik as a platform that responds directly to the modern-day needs of BCOs and LSPs. If you’re in search of a platform that empowers you to manage your supply chain while creating outstanding customer experiences, get started with Cargologik now.
