Hardly any company was able to dodge supply chain disruptions last year. More than a third were concerned about the long-term effects of the pandemic on their operations.
These are some of the findings from a new survey of 250 UK decision-makers by Blue Yonder, a leading provider of digital supply chain solutions. Nearly three-fifths of respondents struggled with customer delays, 44% dealt with stagnant production, and 40% struggled with staff shortages.
More than 80% increased spending in their supply chains, with one in 10 investing more than $25 million.
The situation is now more stable, although there is not much clarity on what comes next, says Wayne Snyder, Blue Yonder’s vice president of retail industry strategy for Europe, the Middle East and Africa.
“The supply chain problems are improving: the workforce is improving, people are getting used to it and have found many solutions”, said. “Now they are starting to focus on things that are more systemic.”
He is not the only one who sees that the crisis is approaching a crossroads. The ports of Los Angeles and Long Beach are making progress in eliminating container backlogs and are working to ensure that momentum continues before the next peak season. The WTO sees global trade reaching a tipping point as supply pressures ease, according to its latest review.
Still, much will depend on what happens in Asia and any outbreak of the virus. In China, it is evident that, although the shortage of electronic products has reached an all-time high, the data in general do not reflect a significant easing in supply conditions at the beginning of 2022.
As Snyder sees it, the supply chains of the future must reverse their approach and use better technology, from artificial intelligence to robotics, to improve visibility.
“They have to be much more of a demand chain than a supply chain: less about buying the items and ultimately getting to the customer. It’s focusing much more on customer demand, the different changes and dynamics, and then working from the front to the back.”, he commented.
Source: Gestion
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