Headlines are starting to indicate that the global supply chain is stabilizing. That said, risks remain, as Accenture’s global aerospace and defense lead recently suggested. The task now for BCOs and LSPs is to determine how best to take advantage of this stabilization while remaining vigilant for risks.
This week’s look at headlines from around the industry explores the state of the global supply chain and how stakeholders are moving forward given current dynamics. Continue reading to learn more about where things stand now and where they may head in the future, and contact us to discover what a single-source-of-truth supply chain orchestration platform can do for your business.
Signs of Stabilization, Glimmers of Hope
If you’re looking for signs of stabilization and glimmers of optimism, look no further than a recent S&P Global Market Intelligence report that says, “U.S. firms have become the most positive about their supply chains in at least 10 years, with 62.6% of U.S.-headquartered firms discussing the topic positively, thanks to lower inventory, cost-cutting, and normalized supplier delivery times.”
Notably, that 10-year window stretches well before the start of the COVID-19 pandemic that rocked the global supply chain and kicked off the steady stream of disruptions that have been ever-present in recent years. This sentiment may indicate that U.S.-based firms have used lessons learned during the pandemic to improve supply chain operations and to use them for growth and other business benefits.
This Logistics Management article on the findings of the S&P Global Market Intelligence report does suggest that perceptions can “change in an instant” and that “supply chains always have to be ready for the unexpected.”
The Latest on Supply Chain Disruptions
On the flip side, there are not-so-rosy storylines that deserve tracking across the global supply chain. Canadian rail networks are moving closer to disruption due to a labor stoppage, which could have ripple effects across North America and around the world. Time is also running out to avert strikes at East Coast and Gulf Coast ports in the United States.
Beyond labor issues, heat waves are creating logistics issues, political upheaval in Bangladesh is creating supply chain disruptions, and ongoing supply chain crises are threatening to “derail” an ongoing recovery in the United Kingdom.
These current and possible disruptions are the types of risk that BCOs and LSPs must remain vigilant for. As the global supply chain stabilizes, these disruptions will continue to emerge. Organizations that have a high level of resilience will be able to proactively address these disruptions so that they can continue delivering outstanding customer experiences.
The End of ‘Easy Globalization’
The “days of easy globalization” are over, according to this story from Supply Chain Digital, as disruptions slowly dismantle the global supply chain. The story notes that ongoing issues (like Houthi missile attacks in the Red Sea) are making global shipping slower and more expensive — a double whammy that few BCOs and LSPs can absorb.
A supply chain and procurement expert suggests that AI, nearshoring, and proactive planning are solutions to these disruptions. For U.S.-based supply chain participants, Mexico has become crucial to nearshoring efforts (and sidestepping global supply chain disruptions).
Visibility as a Solution to Disruption
Visibility is also a commonly mentioned solution to global supply chain disruptions, including in the pharmaceutical industry, according to The Loadstar. The story suggests that visibility plus asset control are the keys to creating the resilience needed for success in the modern supply chain.
Supply Chain Brain follows up with a similar theme, suggesting that the most successful LSPs and BCOs leverage visibility as a “key to effective performance.”
Technology as the ‘Long-Shot Plan’ for Supply Chains
Visibility and asset control are impossible without end-to-end supply chain technology and the elimination of the system fragmentation that too often plagues operations.
This Forbes article says that “a broken supply chain slows down a company’s growth and destroys it over time,” but that “integrating technology with modern supply chains is the long-shot plan.” The beauty of end-to-end supply chain technology is that it helps organizations build “resilience in the face of crisis” — not to mention how it promotes collaboration among the many parties involved in a shipment.
Cargologik: Efficiency and ROI for Your Supply Chain
With Cargologik, you can start optimizing and better orchestrating your supply chain right now. Our end-to-end orchestration platform includes the tools you need to thrive amid disruption, reduce risk, and take advantage of stabilization — everything from visibility to document management.
With our technology for BCOs and LSPs, you can achieve greater efficiency and a higher ROI from your supply chain. Get started now.
