Modern supply chain technology is no longer a nice-to-have. It’s an essential investment for BCOs, LSPs, and other organizations seeking a competitive advantage. EY says that we’re living through “an age of transformation” and that supply chain stakeholders need to use advanced technology to build the ecosystems needed to overcome disruptions so they can thrive.
This week’s look at headlines from around our industry highlights why technology is vital to establishing visibility and effectively orchestrating the many parties involved in moving shipments from Point A to Point B. As we enter some of the busiest months for global supply chain volume and activity, disruptions are lurking in almost every part of the world.
Continue reading to learn more about the disruptions on deck for the last half of the year. Get in touch with us if you’d like to explore Cargologik as a single-source-of-truth platform that helps you transform your supply chain operations to overcome disruption.
All Eyes Turn to U.S. East and Gulf Coast Port Workers
A labor stoppage by Canadian rail workers has ended after the Canada Industrial Relations Board ordered them to return to work. Many were speculating how a long-term strike might affect different industries, including restaurants, across North America. Negotiations between the rail workers and management will continue, but the threat of an extended stoppage has been averted (for now).
With Canada’s rail workers back on the job, attention now turns to dock workers at East and Gulf Coast ports in the United States. Their existing contract runs out on Sept. 30, and retailers like Walmart are rushing to get their goods into the country before that date to avoid a potential strike. Yahoo warns that a strike of this magnitude in the U.S. could “back up goods for months,” bringing back memories of the supply chain chaos that emerged at the start of the COVID-19 pandemic.
An Under-the-Radar Supply Chain Disruption
Houthi missile attacks in the Red Sea and drought conditions around the Panama Canal dominated the headlines at the start of the year. Now, the potential strikes described above are getting the bulk of attention in the supply chain and even mainstream media. But other disruptions impacting the global supply chain are getting far less attention.
For example, China’s Ningbo Port, the world’s third-largest container port, closed earlier this month due to an “explosion involving hazardous materials.” The port reopened several days later, but those days could be costly as goods move from China to destinations worldwide during peak season. The loss of even a few days could lead to widespread delays across the supply chain.
Geopolitical Issues in Bangladesh Impact the Apparel Industry
Political unrest in Bangladesh is creating problems for the global apparel industry. Bangladesh is one of the most important nations in the “ready-made garment” sector, but its recent issues are likely to inspire buyers to look at alternatives, with some considering a “Bangladesh-plus-one” strategy to help mitigate risk.
Geopolitical issues like those in Bangladesh may not capture widespread attention, but they can have profound implications for specific industries. Depending on how long the instability in Bangladesh lasts, the fashion industry’s supply chain could reshape in the long term.
What Does Hurricane Season Have in Store for Us?
August marks the start of hurricane season in the Caribbean, creating supply chain vulnerabilities related to important maritime ports in Mexico and throughout the Southeastern United States — and even up the U.S. East Coast to New York City.
Supply & Demand Chain Executives offers tips for preparing supply chains for hurricane season. One of the tips is to stay informed through high-quality data. In the modern age, the only way to effectively collect, organize, and analyze data is through implementing and using advanced supply chain technologies.
‘Never Waste a Good Crisis’
As noted in the introduction, technology is essential to survival and the development of a competitive edge. The good news is that supply chain organizations recognize that truth and are starting to embrace technology — in part due to the steady stream of disruptions that have plagued the supply chain and logistics space.
“Never waste a good crisis” is a common adage, and that’s essentially what’s happened for BCOs and LSPs in need of digital transformation. The pandemic, the Suez Canal blockage, the war in Ukraine, regular labor stoppages and weather events, plus other disruptions have all motivated organizations to make important investments in supply chain technology. These investments are expected to pay dividends in the form of greater operational efficiency and better customer experiences. The critical question for these BCOs and LSPs is: What’s the best technology for our business?
Cargologik: The Supply Chain Platform Made to Overcome Today’s Challenges
At Cargologik, we offer a supply chain orchestration platform designed to support BCOs and LSPs in the modern age. Our technology helps you overcome the fragmentation that can impact supply chain operations, and it offers tools for everything from visibility to document management while supporting a high level of collaboration across your supply chain.
If your organization is ready for digital transformation, Cargologik can be your solution. Get started now.
