Manufacturing, transportation, packaging, storage and delivery of goods are all services that many businesses now outsource. More disruptions are possible as the trading partner ecosystem becomes more complicated. It becomes vital to be able to access the entire network with a single, real-time version of the truth that shows prospective and actual interruptions.
Companies pay greater costs as a result of their limited ability to efficiently manage problems throughout their supply networks, including increased inventory, premium freight charges, expediting fees, lost items, spoilage, supply-demand mismatch, lost income and more. These costs are ultimately passed on to the customer, resulting in inflation. In the face of continued globalisation of trade, the situation will only get worse as older software companies continue to promote out-of-date design.
The impact of growing inflation on supply management will:
- Lower purchasing power.
- Raise production and procurement expenses.
- Affect bottom-line costs in the months ahead.
Across supply chains, inflationary pressures will increase. As a result, some manufacturers have stocked up on inventory to meet fluctuating demand, but this simply adds to the problem.
The majority of technology solutions are inadequate to deal with today's global network economy. During difficult circumstances, they are incapable of managing processes. The risks and remedies connected with supply chain interruptions must be anticipated by company management. Companies must adopt a revolutionary technology architecture that is network-based, global, AI ready, real-time and capable of providing a single version of the truth for all trading partners in order to remain competitive in the future.
Companies must also set up a control tower to govern the entire trading partner ecosystem. Only then will they be able to detect disruptions as they occur and collaborate with network trading partners to promptly and effectively resolve them.
Managing Disruption and Variability:
When it comes to coping with demand and supply fluctuation, businesses are recognising that traditional enterprise systems are no longer responsive enough. Managers must be able to respond to change in real time and in conjunction with all trading partners across a global ecosystem of suppliers. They also require the ability to change vendors as needed. Companies should create a digital supply chain network with artificial intelligence that supports predictive and prescriptive analytics to deliver a single version of the truth. To make smarter decisions, they can use the technology to access all of the network's planning and execution data. The ultimate goal for the supply chain is to establish resilience, agility, continuity and operational preparedness.
It's not a new concept to solve future disruption concerns and create new business processes. With each new piece of technology that alters customer purchase patterns and the way items travel through supply chains, businesses face this issue. They can establish new and more influential positions that cut across corporate boundaries and engage in collaborative problem-solving with the help of network technologies.
Partners can make better judgments and solve more problems with a digital supply chain network and the capability of automated AI-based agent technology than previously imagined conceivable. Roles that have existed for decades and have been maintained by old stovepipe software architectures are no longer relevant. Businesses must redirect their resources towards new, higher-value activities.
The pandemic has revealed how intertwined the world's supply chains are. A lack of semiconductor chips, for example, has affected vehicle and electronics makers. Due to a scarcity of willing personnel, container ships are loitering at key ports, causing delays in delivering products to stores.
What products are being harmed:
In Europe, rising energy prices will have a "severe cascade effect" on food supply networks. Packaged foods, carbonated beverages and dry ice: The increased demand for fertiliser will result in a shortage of carbon dioxide, which is used in a variety of consumer goods.
- iPhones, electronics, and games from Apple:
Several big Apple suppliers have put their factories in China on hold. In fact, the entire electronics sector, which is already suffering from a severe chip shortage, is likely to be harmed.
- Christmas decorations:
Companies are warning that Christmas decorations will be in high demand. Metals, chemicals and cement all of which are energy intensive – are among industries that would be hit the hardest and most quickly by the problems.
Take control of your whole logistics process with our end-to-end solution in a single platform designed to support your business. The Trident platform ecosystem is developed with AI ready technology, utilising API integrations to enable connectivity across multiple technologies. Ensuring all your information is available in one place, one single version of the truth.
Trident’s network of flexible warehouses provides a solution for businesses looking to store excess inventory without the commitment to additional space. Only pay for the space you need, when you need it. Strategically distributing inventory across multiple locations not only improves delivery times, but also reduces fuel costs and mitigates risks associated with adverse weather and traffic disruption.
Tridents integrated carrier network ensures that our customers have the optimum solution to meet their needs. Optimum cost, optimum service and optimum carbon footprint.
Trident understands that growth is not always steady. Flexible solutions allow for unlimited growth, whatever the pace and without compromise. All you need to do is search store and send on-demand. We’ll do the rest.
https://www.cnbc.com/2021/10/11/jpmorgans-dimon-says-supply-chain-hiccups-will-soon-ease-points-to-extraordinary-consumer-demand.html https://www.cnbc.com/2021/10/11/holiday-shopping-shortages-fueled-by-energy-crises-vietnam-shutdowns.html https://www.supplychainbrain.com/blogs/1-think-tank/post/33843-surviving-supply-chain-disruption-and-rising-inflation