In this age of constant disruption, supply chain risk management has taken center stage. After years as a niche concept, recent geopolitical issues, labor strife, and weather events have pushed organizations to address supply chain risk management in a way that’s more aggressive and proactive than ever before.
The global supply chain is the engine that delivers day-to-day goods to store shelves. It’s also the driving force behind big, economy-building holidays and events (like Halloween). Supply chain stakeholders have discovered that, without effective risk management, store shelves could be left empty, and economies may limp along with limited growth.
This week’s exploration of headlines from around the supply chain and logistics industries looks at how organizations are pursuing risk management strategies right now. Continue reading to learn more, and contact us to discover how the Cargologik platform enables better supply chain orchestration, collaboration — and risk management.
Supply Chain Disruption: An Existential Procurement Threat
Reactive measures are a thing of the past for procurement departments, according to Gartner. Once upon a time, procurement teams could respond to supply chain disruptions in real-time, create plans, and work around the disruptions at hand to reduce risk. That approach doesn’t cut it anymore. So, how should procurement departments proceed?
Gartner recommends that procurement leaders prioritize potential risks, build or strengthen important supply chain partnerships, and work internally to address potential economic and compliance issues. Without taking a more proactive approach to supply chain disruptions, procurement issues could create existential crises within organizations.
The Ripple Effects of Labor Strife
The United States recently avoided a significant risk when the ILA suspended its strike shortly after starting it. There remains a risk that the ILA will strike again in January, but that does provide a limited window for supply chain stakeholders to learn lessons from the abbreviated labor stoppage in October. Lessons learned is a common theme across the post-pandemic supply chain. The challenges during the worst of COVID-19 have informed better decision-making in recent months.
What does labor-related supply chain risk look like? Brownfield writes about what workforce disruptions mean for the food supply chain. Each industry will be affected slightly differently by strikes at major ports (and other transit hubs). Still, the effects of any labor stoppage could potentially trickle down to consumers and the economy at large.
Access to Data is Essential for Supply Chain Success
Access to “high-quality, verifiable data” is part of the solution to limiting supply chain risk. With the right data in place, organizations can make the best decisions and ensure compliance in a global economy where new regulations are emerging with each passing year.
The ultimate goal is for organizations to be “more aware than ever before of where and how their products are made.” This is important to reduce regulatory risk but also a path to building a strategic advantage. With access to data, organizations risk falling behind their competitors.
Stay Ahead of Regulations With Real-Time Visibility
Speaking of regulations, supply chain stakeholders should be prepared to track, monitor, and offset their supply chain-related emissions to remain compliant in the global marketplace in years to come. Visibility is the key to decarbonization and adherence to regulations. The fashion industry has long known that visibility is essential to understanding its suppliers and preventing the use of slave labor. Now, a broader set of industries is discovering that visibility is necessary to build sustainable supply chain operations and stay ahead of regulations.
Amazon Issues West Coast Warning
Amazon is one of the many organizations seeking to minimize supply chain-related risk to keep its operations pushing forward. Now, Amazon is warning of West Coast capacity issues, suggesting that high demand has led to “lengthier processing times for seller inventory at inbound shipping locations.”
Amazon’s warning comes ahead of the busiest shipping time of the year. This holiday season is expected to be bigger than last year’s despite a shortened shopping season, and Amazon’s warning could foreshadow supply chain issues. Of course, any third-party sellers caught up in this capacity crunch could risk poor customer experiences and other consequences. This is a dynamic worth keeping an eye on through the holiday season.
Supply Chain Tech That Helps Reduce Risk
At Cargologik, we’ve designed a supply chain orchestration platform that helps LSPs and BCOs reduce risk. Establish real-time visibility, manage documents, and track emissions while creating efficiencies and eliminating supply chain fragmentation. If you’re looking for technology that responds to this uniquely challenging moment in the global supply chain, we’re here to help.
