Suppose you’re a big reader of annual trend watch articles and posts for the latest supply chain trends. In that case, you are probably used to seeing buzz phrases like the Internet of Things (IoT), blockchain, and artificial intelligence (AI) crop up year after year.
Naturally, these emerging technologies will have more of an impact on the supply chain throughout 2022 and beyond. However, more pressing trends for the year will be linked to COVID-19 and its associated impacts.
The pandemic continues to rock the supply chain, and its impacts will likely hold sway over the industry throughout the year. Companies will be more focused on addressing staffing shortages and logistical complications than on adopting AI technology. Make sure your company is ready for whatever 2022 has in store by keeping up on the latest supply chain trends.
With this in mind, you should be cognizant of the following supply chain trends in the coming months.
An Emphasis on Adaptability
Shortages of raw materials, supply chain labor, and shipping capacity are expected. Businesses will need to adapt.
A business can boost its adaptability by concentrating on agility, contingency planning, and diversification. Being agile can help companies react to changes, such as wild swings in production. Companies can also make contingency plans based on good demand planning and preparations for unexpected disruptions. Organizations should also cast a wider net when sourcing products and logistics partners.
Thanks to apps like Lyft and GrubHub, the expectations of modern consumers are changing. These apps provide real-time, detailed visibility, and the supply chain is significantly behind in this regard. Not providing adequate visibility for corporate customers or individual consumers can have significant negative implications for a company’s brand.
With product shortages and backlogs plaguing supply chains the world over, visibility can help frustrated customers feel a sense of control. It’s much better to show a customer their shipment is delayed in Chicago than to tell them you don’t know where the load is located.
In addition to meeting customer expectations, visibility also helps businesses save time, permitting them to spend more time on other vital concerns.
Capacity at a Premium
Capacity issues are forcing supply chain managers to accept anything they can get. Before COVID, businesses were basing decisions on carriers’ performance. But now, managers are simply hoping to keep things moving and at a reasonable cost.
Throughout the year, supply chain teams will desperately seek carriers to fulfill deliveries and orders. Using multiple carriers can keep businesses from putting too many eggs in one basket. However, the days of shopping around for the best offer with different carriers aren’t coming back any time soon.
Insufficient labor, lack of raw materials, and surging e-commerce have driven up pressure on the global supply chain, causing costs to go up.
In 2022, some businesses will focus on shortening supply chains through reshoring in an effort to reduce costs. If companies cannot adequately cut costs, they will pass them on to consumers or slash costs in other areas.
We Can Help Your Company Navigate the Trends
At ZDA, we’ve been helping companies meet unprecedented staffing challenges throughout the pandemic. If you are looking for the right employee for your business. We can help! Please contact us today to find out how we can help your organization. Want to stay up to date on the newest supply chain trends? Click below and sign up for our Newsletter today!