The global supply chain has been difficult to predict in recent years. When sometimes it seems we’re entering a period of relative calm and placidity, a new disruption emerges to complicate things. As we move into the second half of the year and the start of peak shipping season, some experts are making predictions about what the global supply chain has in store for us through the end of 2024.
Continue reading to learn more about these predictions and other hot topics across the supply chain space. Get in touch with us at Cargologik to discover how our single-source-of-truth supply chain orchestration platform can support efficient operations — no matter what disruptions emerge.
Supply Chain Challenges Will Continue Throughout 2024
Expect “global shipping strains” to continue through the end of the year. We’re just now entering peak season for shipping, but the twin issues of missile attacks in the Red Sea and port congestion have put pressure on shipping capacity. There’s also the issue of a lack of empty shipping containers at important ports in export markets.
This is obviously not good news for BCOs and LSPs who lived through the challenges of the COVID-10 pandemic. However, the silver lining is that many supply chain participants have implemented visibility tools and other technologies that better support workarounds for supply chain disruptions. These technologies can be the key to organizations keeping their supply chains moving forward and creating positive customer experiences, even in the face of disruptions.
Creating Supply Chain Resilience in Manufacturing
Resilience is a word commonly used to describe supply chain solutions for modern problems. It represents any organization’s ability to respond to the unexpected and keep supply chain operations moving forward no matter what’s happening across the broader landscape.
In the manufacturing world, organizations are creating redundancies to build resilience. For example, manufacturers are keeping their vendors in China while also working with vendors that provide the same products or services in different parts of the world. This gives organizations a backup should something go haywire in or around China. This approach is becoming more and more commonplace in an age when disruptions emerge on a regular basis.
Redundancy vs. Nearshoring
Shein is taking this “redundant” approach to manufacturing. It is exploring suppliers in Turkey to help the company source clothes for the European market. This is in addition to its traditional suppliers in China.
Not all companies are taking this redundant approach. Many are looking at nearshoring as an option. They are choosing suppliers and vendors much closer to distribution hubs in hopes that closing this distance will decrease risk and reduce disruption. The Financial Times writes that nearshoring is the pathway to global growth. Only time will tell whether the redundancy or nearshore approach is best (or if a blend of the two delivers the best results).
North American Labor Issues Threaten Supply Chain Disruption
A pair of potential labor issues could create supply chain disruptions across North America. Dockworkers at key ports along the East and Gulf Coasts of the United States have canceled bargaining and are threatening a strike. At the same time, there’s potential for a rail strike in Canada, which could cause serious inventory issues for apparel brands.
This is a perfect example of why resilience supported by supply chain visibility and orchestration is so important. Resilient organizations will be able to plan around labor issues and other supply chain disruptions in a way that organizations lacking resiliency will not.
The Importance of Collaboration and Orchestration in Supply Chain Operations
In addition to resilience, collaboration is essential to solving today’s supply chain challenges. The movement of products and goods requires many different parties. Without tools that support close collaboration, the movement of those products and goods will be unnecessarily vulnerable.
Supply & Demand Chain Executive predicts that the widespread adoption of supply chain orchestration tools will be increasingly common as BCOs and LSPs attempt to achieve the level of collaboration that’s needed today. The key is to find a single source of truth that helps you avoid fragmentation in your tech stack and across your supply chain.
Start Building Supply Chain Resilience Through Cargologik
Cargologik is a platform designed to meet the modern needs of BCOs and LSPs. It offers everything from real-time visibility to document management. The goal is to help you achieve the level of orchestration and collaboration needed to build resiliency for today’s supply chain.
Are you ready for technology that empowers your supply chain operations and growth? Get started now.
