The worldwide supply chain industry was measured to be worth at least $15.85 billion during the 2020 assessment according to Statista.com. That doesn’t mean it has been an effortless fortune for most companies. Supply chain challenges have affected the industry for years. This includes changes in global supply and demand as well as the international political climate. You might be wondering though if supply chain issues improved. What challenges could face companies in 2024 and beyond?
Have Supply Chain Issues Improved?
Here’s what every company should know about the current state of supply chains, and what the future of the industry might hold.
Changes in Supply and Demand
There have been notable challenges for the supply chain industry since 2022. One notable challenge is a change in supply and demand. This has had a global effect on almost all companies working in the industry. The global change is partially pushed by the introduction of new products and companies and by the widening of the supply chain scope to further areas.
Companies like Amazon expanding into new territories have also affected how supply and demand affect companies along the chain. There’s more demand than ever, which means that companies have had to push harder to keep up with a constant supply. Some new companies have folded, and even some conglomerates like Amazon have felt the impact of this change.
The COVID-19 Pandemic
The COVID-19 pandemic is still fresh in most of our memories, and it’s had a rocking effect on the entire supply chain world. The COVID-19 pandemic forced a global change in ongoing supply chain practices. From raw materials to finished goods, the pandemic has affected inventory levels long term.
The change included an immediate shift in supply and demand with many customers ordering from home. Protecting staff in the supply chain during the pandemic was also a big challenge. This involved implementing rules such as social distancing for deliveries and finding ways to work around lockdowns.
This balance is crucial in respect to avoid losing relationships with suppliers. Many sectors moved to working from home. Meanwhile, other companies took the time to assess what they were going to do after lockdown. The effects of COVID-19 on the global supply chain network are still noticeable. Especially when looking at the areas of health and safety regulations.
Supply and demand have also changed as a result of the pandemic. Many people adapt to ordering or working from home as the norm. Due to increased consumer demands, some products have become harder to find, while others have become more expensive. Lead times are affected and consumers must wait longer for their goods.
The Post-Pandemic World
Global supply chains have been permanently altered by COVID-19 rules and regulations, though companies across the globe have been forced to face the challenges head-on. Moving forward, they are creating a better plan for future issues that might affect the supply chain again. A post-pandemic world doesn’t mean that the worst is over, but that supply chain companies should learn from the experience. They must keep going forward to avoid supply chain disruptions and remain flexible and resilient.
The Introduction of Newer Technologies
The best of artificial intelligence used to be measured with ELIZA (DOS), but today there are advanced technologies that can compute the cost of a supply chain faster than most people would be able to notice they’d been asked a question! Newer technologies like AI-driven software and algorithms have also changed the supply chain world.
If you want to keep up, ditch that pen-and-paper system. New technology offers something that can provide real-time statistics and possible predictions, for a better business and your supply chain issues improved. If you’re shunning AI in the new age of supply chains, you might just be losing out.
The Junction LLC | Truckload Shipping
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