Emerging Supply Chain : 2022

The pandemic not only affected the entire human race emotionally, but it also had a significant impact on businesses around the world, which are still working to recover from its effects.

In 2022, supply chain uncertainty remains high. Experts disagree on whether current blockages will ease or if this year will be as volatile as the previous 18 months. The Financial Times discusses the consequences of last year's shipping crisis, citing a UN report that predicts a 1.5 percent increase in global inflation as a result of shipping.

Many companies are looking to turn crisis into opportunity by making supply chains more reliable and resilient. Digital mastery of supply chain technologies has been an important discussion point over the years but is now a mainstream requirement for success.?

Organizations across industries will lean in to improve agility and resilience across their supply chain ecosystems in 2022. With the pandemic causing ongoing disruption, changing customer expectations, an evolving technology landscape, and a demand for more sustainable practices, supply chain professionals require efficient and transparent processes more than ever before.

?Some key supply chain areas that organizations should focus on for future innovation include vendor and supplier management, supply chain planning, order management, reverse logistics (a process that reduces costs for businesses), transportation visibility, and fleet management.

We can't predict what kind of disruptions to our supply chains will occur in the future. Uncertainty has become the new norm, necessitating the inclusion of agility and resilience across the entire supply chain ecosystem by organizations.

?We know that consumer demand is rising as a result of e-commerce. We can argue that there are reasons to be optimistic about the supply chain's future, especially as new innovations disrupt our old frameworks and streamline operations.

Challenges in the supply chain must be met with speed, efficiency, and safety. Today's B2B and B2C customers behave differently than they did before Covid. They expect a certain level of visibility and control over the status of their packages, where they are delivered, what time of day they are delivered, and other details. They are also technologically savvy, seeking quick and easy purchasing options. These are the factors driving the growth of e-commerce sales, which are expected to reach $1.06 trillion by 2022. Recognizing that the pandemic had a long-term impact on consumer behavior is the first step toward tailoring solutions to meet new demand.

Partnerships can be a strategic way to reduce costs while improving customer service and functionality. Businesses that don’t have the expertise or bandwidth to support more innovative processes will look to partnerships and industry collaboration to keep products moving.

?The pandemic pushed risk management to the forefront of almost every business agenda. According to McKinsey research, 95 percent of companies surveyed now have formal supply-chain risk-management processes in place. In addition, 59 percent of businesses said they would implement new supply-chain risk management practices in 2021.

Following the events of the last two years, business leaders are re-evaluating operations, streamlining management, and looking for strategies that will increase business resilience.

We are living in and operating businesses during a unique period in history. Consumers, it could be argued, have never been more aware of supply chain disruptions, delayed delivery times, and restocking issues than they are today.

Those who understand the industry's inner workings know it is long overdue for true modernization. If we keep our sights set on innovation and continue to seek out creative solutions to pressing problems, 2022 could be a year marked by efficiency, collaboration, and perseverance.

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