2022 Supply Chain Crisis: How to Navigate the Rest of the Year
While, the supply chain continues to be disrupted, overall, it is becoming a bit better, slowly.
The complexity, interconnectedness, and fragility of the supply chain made it extremely vulnerable, especially in the face of a global pandemic and a major war.
In addition, labor shortage combined with the evolving customer demands has made it harder for businesses to keep up. Keep reading to find out what you can do to address the impact of the supply chain crisis on your organization.
How to Overcome Supply Chain Challenges in 2022?
With increased visibility into your supply chain operations and finances, you can effectively identify areas of weaknesses and opportunities, efficiently control costs, accurately plan for future growth, and make impactful, data-driven decisions.
Experts estimate that by 2023, 50% of global product-centric enterprises will invest in real-time transportation visibility platforms. This enhanced visibility will allow you to boost customer satisfaction and give you access to high-quality data that will inform carrier selection, rates, contract management, and routine guidelines.
Optimize Logistical Networks
76% of supply chain professionals report that they have noticed an increase in the frequency of disruptive events in the last three years. To better handle these disruptions and ensure shippers and carriers are on track, you need to:
- Regularly communicate with suppliers and customers and keep them informed on the situation to minimize the impact of the disruption. An up-to-date contact list will make it easier to reach out to everyone involved during an emergency.
- Always plan ahead and have contingency plans put in place to handle the consequences of the disruption.
- Even when things turn chaotic, try to stay calm and organized, so you face the situation with a level head.
Implement New Technology
There are several benefits to incorporating new technology into the supply chain process as this fosters better efficiency and visibility. As cloud-based technology allows users to access information and track shipments no matter where they are, it is becoming an increasingly popular tool in supply chain management. They also provide real-time updates, reducing the frequency of errors.
GPS tracking and automated notification systems are also gaining popularity as they allow carriers to effectively decide on the best routes. Though implementing new technology can be complex and at times, expensive, the benefits of doing so outweigh the costs.
Understanding Vendor Relationship Management
Vendors play an important role in ensuring your company’s success. It is important to build strong, long-lasting vendor relationships that promote cooperation and support. This is why when choosing vendors, you need to look at more than just the price of the product and services—you need to make sure they’re compatible with your organization’s ethics, work style, regulations, and compliance requirements.
You need to be in regular contact with vendors to stay up to date on schedules, changes, and order issues. There are vendor management tools that can provide you with a holistic and centralized view of vendor-related data and how it can be integrated with the company’s network.
The Products Unlimited Inc. team provides the best customer service and a range of product selections to help you manage your procurement needs. Contact us for more information.