There’s no budget-friendly approach to supply chain management in the modern age. Organizations and executives are quickly realizing that they need to make smart strategic investments that can keep their supply chains moving forward while creating strong ROI.
While those objectives are more easily written than accomplished, this week’s headlines suggest ideas and strategies for reaching them. Continue reading to learn more about what organizations and their leaders are doing right now to overcome supply chain challenges, and contact the Cargologik team to learn more about how our single-source-of-truth supply chain orchestration platform empowers BCOs and LSPs.
The Supply Chain’s Disproportionate Influence on the Cost of Doing Business
Supply chains influence between 50% and 75% of the cost of doing business for any given organization. This statistic is particularly important given that the global supply chain is currently impacted by geopolitical tensions in the Red Sea and Ukraine, low water levels in the Panama Canal, population shifts that are remaking consumer demand patterns, economic uncertainty and inflationary pressures, and other dynamics.
This Forbes article explores how shippers are responding, noting that 44% of consumer packaged goods leaders are planning to increase the use of supply chain management technology in 2024 as part of a solution. The article explores how “systems of intelligence” are making possible what was once impossible in the supply chain and logistics tech landscape.
The Silver Lining to Pandemic-Era Supply Chain Challenges
Fragmented technology and supply chains make it difficult to move goods and products worldwide. If there’s a silver lining to the supply chain chaos that emerged from COVID-19, it’s that the domestic supply chain in the United States was forced to pursue “unprecedented alignment and coordination.” Technology powered (and continues to power) this successful pursuit of greater collaboration across the American supply chain.
This MarketScale article analyzes technology's role in post-pandemic supply chain collaboration, noting the “transformative power of technology in enhancing communication and operational efficiency.” The right supply chain technology investments can help organizations maximize orchestration and achieve real ROI.
Where are Supply Chain Executives Investing?
New survey data indicates that executives are increasing their investments in supply chain funding. Sustainability is a key focus of investment, as is AI-based technology (41% of respondents) and digital transformation (37%).
Keep in mind that supply chain technology should directly help solve the problems that a BCO or LSP is experiencing. If that solution requires AI, so be it. But during the search process, focus first on identifying your supply chain challenges and searching for the supply chain technology that helps you overcome those challenges to provide great customer experiences, achieve operational efficiency, and secure the ROI you expect from your tech stack.
The Disruptions Impacting Today’s Supply Chain
The Biden Administration recently announced new tariffs, which could lead to supply chain disruption. Climate change is also leading to supply chain disruptions, which can have widespread consequences, including stunting the growth of manufacturers and creating challenges for OEMs.
It’s become clear that the COVID-19 pandemic was the worst supply chain disruption in history, but a series of lesser disruptions continue to create a world of bottlenecks, making navigating the supply chain maze difficult. As disruptions continue to become a regular feature of the global supply chain, it becomes increasingly clear that legacy processes and technologies will not be enough for BCOs and LSPs to continue with business as usual. They will need to challenge themselves and update workflows, processes, and systems to maintain a competitive advantage.
Regionalization as a Supply Chain Solution
What’s the solution for these disruptions? Technology is an important part of the solution, but it’s not a magic wand that can overcome all challenges on its own. Supply Chain Brain writes that regionalizing supply chains may be an answer to overcoming disruptions.
At a time when consumer expectations are high and the customer experience is more important than ever, a regional supply chain may increase both speed of delivery and service excellence. With a regional approach, there’s simply less surface area for supply chain disruptions to emerge.
Take a Step Toward Supply Chain Solutions With Cargologik
The Cargologik platform is designed to be an all-in-one platform for BCOs and LSPs, creating a solution for everything from visibility to document management. As the global supply chain learns to live with disruption and constant challenges from unexpected sources, the right technology can be your organization’s best friend in overcoming those challenges and keeping its supply chain moving forward.
Ready for a single-source-of-truth platform to power your global supply chain operations? Get started now.
