How tough is the supply chain, logistics, and transportation landscape right now? The lead-in for the 33rd Annual Study of Logistics and Transportation Trends paints a pretty clear picture, suggesting that today’s “professionals must navigate challenging market conditions and an evolving regulatory environment while competing for talent and continuously evaluating new and emerging technologies.” It goes on to describe the industry like a puzzle in which “missing or neglecting even one piece” can lead to “operational disruptions, inefficiency, and missed opportunities.”
There’s good news, though. The companies in the logistics and transportation space that are adopting modern technologies are experiencing increased efficiency (84% of respondents) and improvements in employee productivity (76.2%). Navigating the challenges listed above is not impossible for organizations willing to transform their operations to match the modern landscape.
This week’s exploration of the headlines highlights both the challenges and solutions that BCOs, LSPs, and others are facing and exploring in today’s global supply chain, logistics, and transportation field. Keep reading to learn more, and contact us if you’d like to explore using Cargologik as the platform to help you step into the future.
It’s Time for an Upgrade
IndustryWeek echoes the sentiment from the report linked above, stating that “supply chain management is overdue for an upgrade” given that organizations today are dealing with “more variables and increased complexity.” The survey results from the report indicate that organizations are investing in technology, but some industries are moving faster than others — with the food and beverage industry an example of a laggard in modernization.
The importance of supply chain technology and its key role in modernizing global shipping is the reason why venture capital is flooding into the supply chain space.
Dealing With Our New Supply Chain Normal
Organizations are adopting technology to drive efficiency and productivity, but the reason efficiency and productivity are so valuable is the ongoing stream of supply chain disruptions, which have become the new normal. Houthi missile attacks continue in the Red Sea, increasing transit times and costs. China is going through fresh rounds of COVID-19-related lockdowns. And there remain costly and overlooked supply chain risk areas that linger as potential disruptions. As we push toward the end of the year, supply chain stakeholders are leaning heavily on proactive planning and modern technology to help protect the all-important holiday season from disruption.
The Impact of Disruptions in the UK
Disruptions and their aftereffects are a global issue — not something confined to the United States. New survey data from the United Kingdom indicates that 45% of decision-makers expect disruptions to increase in the next year, and 60% agree that their supply chains are more fragile than ever. In the U.K., this fragility has been driven by inflation, high energy and fuel costs, and geopolitical issues around the globe.
World Governments Focus on Supply Chain Resilience
World governments and others are getting into the mix of creating solutions to supply chain fragility. The U.K., U.S., and Australia have entered a supply chain resilience pact. The U.S. Department of Commerce has launched an effort to advance supply chain resilience. And the U.S. and India have created a partnership that will explore solutions for the semiconductor supply chain.
Where does private business fit into these efforts to build resilience? Harvard Business Review suggests that it’s time for CEOs to become supply chain experts so they can help eradicate fragility and build the resilience needed to thrive in the modern supply chain.
Product Recalls Rise Due to Supply Chain Issues
Here’s a supply chain challenge that few are thinking and talking about: product recalls. Product recalls are rising across various industries, and supply chain issues are partly to blame. Today, responsibility for specific parts or ingredients sits in the hands of a smaller number of suppliers, but organizations also have less visibility into the activity and quality of their suppliers’ work. As a result, more and more products get recalled, which is staggeringly expensive in many cases. According to survey data, 39% of respondents said that one product recall costs between $10 million and $49.99 million.
Establishing better visibility and more efficient supply chain management can help these organizations better collaborate with and keep tabs on suppliers — which, in turn, would help avoid costly recalls. Fewer recalls would also mean better customer experiences, which is another benefit of taking steps to establish supplier visibility.
Solve the Supply Chain Puzzle With Cargologik
Your challenges find solutions with Cargologik’s supply chain orchestration platform, which helps your organization eliminate fragmentation and handle everything from visibility to document management. We’ve designed a modern tool that responds to the needs of modern BCOs and LSPs, helping proactively manage their supply chains and avoid disruptions so they can maximize their businesses.
Ready to step into the future of supply chain management with modern technology? Get started.
