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Emerging trends impacting global supply chains in 2022

The COVID-19 pandemic has resulted in various challenges for global supply chains in 2022. As a result, there have been new trends emerging in the way businesses and logistics providers are approaching operations and mitigating risk for the future.

In addition to the pandemic, the war in Ukraine has further impacted global supply chains, with an increase in shipping costs and raw materials stemming from both global events. The impact of the pandemic has tested business operations and highlighted gaps. According to studies, 67% of CEOs say they will increase investment in disruption detection and innovation processes to help mitigate future risk.

Logistics disruptions 

The global lockdowns and closure of borders that restricted international trade has caused a build-up of goods and subsequent shipment delays, leaving businesses without access to replenishing inventory. The supply chain disruption was significant in 2020/21, and as predicted, these disruptions have continued well into 2022, leaving consumers to re-evaluate expectations of delivery times and stock replenishment. As a result, more industry leaders are looking at increasing domestic capabilities, so businesses are less reliant on and susceptible to disruptions in the global supply chain in the future.

Production delays

The pandemic and recent war in Ukraine has impacted every stage of the value chain, causing manufacturers to compete for limited raw materials and key commodities, which concludes with consumers waiting on longer lead times and empty shelves.

Production delays such as this are seeing businesses and manufacturers shifting their priorities from the lowest cost to the lowest risk when selecting goods, logistics providers and suppliers.

This period of global uncertainty has led to many businesses re-assessing their long-term supply chain strategies and contingencies by evaluating operational processes. As we enter the post-pandemic new normal, more businesses are altering operations and re-engineering products to become more reliant on domestic materials to remain competitive.

Investment in technology

The prediction ahead is to see more businesses invest in enhancing critical supply chain capabilities and predictive analytics by including greater visibility at each stage of the supply chain by implementing advanced technologies that improve transparency.

Leading supply chain solution providers such as IFC Global Logistics and Warehousing are continually investing in technologies that significantly increase visibility, to enhance agility in making informed decisions to optimise operations and prevent avoidable delays.

Trends in the workforce

Another uncertainty arising is shortages in workers. Some workforce shortages can be attributed to increased demand in certain industries as consumers’ shopping habits have changed, naturally many non-COVID-related issues also impact staffing.

The high turnover of the warehouse workforce is also an area that has turned to advanced technology to improve security. An example of this is businesses utilising security cameras to maintain logs and provide video to create a time and motion index, allowing monitoring before and during potential incidents.

The introduction of new technologies is changing the way many businesses operate, but it cannot work in silos and requires experienced workers with niche skills, resulting in businesses requiring a blend of advanced technologies and technologically skilled workers to continue to grow.

Get in touch to see how IFC has responded to these recent challenges and can help create a tailored solution to assist your business with supply chain logistics management for the future.

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