Supply chain “snags” were a significant contributor to bankruptcy filings in 2023. And it’s not just trucking companies and logistics service providers that are falling victim. Companies across various industries have struggled to keep their doors open amid clogged ports, persistent backorders, and difficulty securing raw materials.
This week’s edition of the Cargologik newsletter examines where things stand with supply chain disruptions as 2024’s second quarter begins, highlighting how technology serves as a go-to solution. Continue reading to learn more, and get in touch with us to discover how our supply chain orchestration platform helps you work around disruptions.
A New Threat in the Indian Ocean
If the crisis in the Red Sea wasn’t enough, shippers and other global supply chain stakeholders now have another threat to worry about: Somalian pirates.
In late March, a Bangladeshi-owned bulk carrier was attacked by a speed boat carrying pirates, with the captain and second mate being taken hostage. These attacks add to the risk and cost that shipping companies are incurring to continue operating in and around the Indian Ocean. The missile attacks in the Red Sea have made a significant impact on various industries, retail included, and time will tell how these pirate attacks will further exacerbate existing supply chain disruptions.
U.S. Imports Shift From West to East
The pattern of U.S. imports from Asia is changing, shifting from the West Coast to the East Coast. This trend has been taking shape slowly since 2018, and it is now picking up steam as shippers recognize the importance of diversifying their supply chains to reduce risk.
This story in Railway Age poses an important question: Can the U.S. supply chain keep up? Shifting imports from West Coast to East Coast isn’t as simple as choosing a new port of entry. There needs to be capacity and infrastructure in place to accommodate this shift, and any unexpected development (like the Francis Scott Key Bridge collapse in Baltimore) could hamper the East Coast’s ability to manage an influx of new imports.
Balancing Costs Amid Disruptions
As a steady stream of unexpected disruptions continues to wreak havoc across the global supply chain, electronics companies (and presumably others) are looking for ways to balance costs. As new risks continue to emerge, moderating costs will be important to continuous and efficient supply chain operations, not to mention customer satisfaction and strong financials.
At Cargologik, our platform is designed to help BCOs and LSPs manage their supply chains proactively, anticipating disruptions around the world and working to mitigate the delays and additional costs associated with them. We believe the future of supply chain management is collaborative, and our platform serves as a single source of truth that ties together disparate stakeholders so that they can keep things moving forward — even in the face of disruption.
As supply chain participants seek to balance the cost of shipping, technology will play an essential role now and in the future.
Logistics Excellence Helps Meet Customer Expectations
Creating outstanding end-user experiences should be the heartbeat of logistics operations, according to TechHQ. Customers today expect:
- Trouble-free deliveries and returns
- Transparent tracking
- Clear communications
- Efficiency and low waste
- As few delays as possible
- Overall professionalism
Logistics partners are in a unique position to deliver on these customer expectations, and shippers should select logistics partners with strong track records of meeting them.
Technology: The Key to a Resilient, Reliable Supply Chain
MIT Technology Review recently wrote about how “rapidly advancing technologies” are building a more reliable supply chain. The article highlights the Suez Canal blockage in 2021 and the costs associated with it. The story notes that new developments in supply chain tech (like the inclusion of artificial intelligence, machine learning, blockchain, and other systems) have the ability to create a resilient supply chain for the future.
How Supply Chain Issues Impact the Global Economy
The fallout from supply chain disruptions isn’t limited to just the supply chain itself. New research indicates that these disruptions “cause large macroeconomic adjustments and challenge the effectiveness of stabilization policies.” This research highlights the importance of supply chain efficiency and continuous operation, even in the face of constant disruptions. It also crystallizes the importance of supply chain technology in facilitating efficiency and continuous operation.
A Single-Source-of-Truth Platform for Your Supply Chain
Collaboration and orchestration are keys to working around modern supply chain disruptions, and our platform delivers both while serving as a single source of truth for your organization and its stakeholders. We help BCOs and LSPs overcome fragmentation through a single technology solution that handles everything from visibility to document management.
Contact us to learn more about how our supply chain orchestration platform can benefit your business.
