Supply chains are still vulnerable. That’s the simple message in this new report by McKinsey & Company, which asks the question, “When it comes to supply chain resilience, have companies taken their eyes off the ball?”
The report suggests that companies have taken their eyes off the ball because survey data indicates that there exist “considerable gaps” in organizations’ collective ability to identify supply chain risks and their ability to address those weaknesses.
This week’s exploration of headlines from around the supply chain and logistics landscape looks at how BCOs and LSPs are dealing with modern-day supply chain risks, including case studies on remaining nimble, ideas for mastering visibility, plus more. Consider reading to get the latest from around the industry, and contact us to discuss establishing a single-source-of-truth supply chain orchestration platform that’s designed for today’s challenges.
How Retailers Should Address Supply Chain Issues
Supply & Demand Chain Executive suggests that real-time visibility and collaboration are essential if retailers want to “develop the agility needed to navigate today’s unpredictable retail environment.” We’re big believers in both visibility and collaboration, two things that rest at the heart of what the Cargologik platform offers LSPs and BCOs. The Wall Street Journal brings to life many of these points, writing about how Mattel has closed some plants and slashed its product lines so that it can be more agile in responding to consumer demand. The ultimate goal for retailers is creating outstanding customer experiences — and sometimes, that requires fewer plants and products.
How to Establish Supply Chain Visibility
Speaking of visibility, Supply & Demand Chain Executive also shares trends and strategies for success when establishing it. The article highlights aligning systems among partners, implementing integrated management platforms, and investing in quality technology as keys to improving visibility. It also describes how visibility helps create a competitive advantage through reduced inventory losses, minimization of efficiencies, and overall streamlined operations.
The point about “integrated management platforms” is particularly important. Given modern challenges, supply chain fragmentation is one of the greatest threats to future success.
A Glimmer of Hope? Index Suggests Recovery
While many headlines across the supply chain and logistics space have a negative connotation, there are signs of hope — including this article from Florida Atlantic University. The supply chain index created and monitored by researchers at FAU and four other institutions hit a 2-year high recently, indicating that “the logistics industry has recovered.” Only time will tell if we have fully recovered, but the September index of 58.6 was higher than August’s reading of 56.4 — and the highest since September 2022.
The Impact of Organized Labor on the Global Supply Chain
The strike at ports along the U.S. East and Gulf Coasts did not last long. In the aftermath of this averted crisis, Supply Chain Management Review examines the impact that organized labor can have on the global supply chain.
The article, reprinted from the University of Tennessee’s Global Supply Chain Institute blog, dives deep into the history of unions negotiating the use of technology in port operations. It also provides a forward-looking challenge: “new technology that, in most cases, was developed domestically” is “used mostly abroad.”
The article makes the pointed statement that the U.S. must “address labor costs to be competitive or face the reality it may no longer be the strongest economy in the world.” The article also warns that the deal that ended the strike was only an extension and that the threat of a strike is not gone entirely.
Maritime Disruptions Boost Air Cargo Volumes
The extreme weather and labor unrest that affected maritime shipping in September led to a spike in air cargo volumes, according to Supply Chain Dive. Air cargo demand increased 9% year-over-year in September, and rates could quickly rise in October as “air cargo capacity leaves the market for the winter.” That said, the article does state that “companies are more prepared this year to handle peak season uncertainty,” which could indicate that they have not taken their eyes off the ball entirely — as McKinsey & Company reported above.
Modern Technology for Today’s Supply Chain Challenges
Read through articles from across the supply chain and transportation industry, and themes start to emerge. For example, there’s consensus that visibility, collaboration, and high-quality technology are needed to navigate today’s complex landscape.
At Cargologik, we offer a single-source-of-truth supply chain management platform that delivers visibility and supports the collaboration that LSPs and BCOs need. It can handle everything from rates to document management, bringing all of your partners and stakeholders into a shared environment in a way that builds efficiency — and helps you develop a competitive advantage.
Don’t waste time trying to navigate today’s supply chain challenges with yesterday’s technology. Contact us to learn more about using Cargologik to enhance your operations.
