With the dramatic shift in procurement caused by the pandemic, a grasp of managing supply chain challenges has become imperative to successful business outcomes. The global pandemic impacted supply chains in many ways, including:
● Visibility.
● Delays.
● Market size.
● Growth.
● Shipping methods.
These changes have promoted shifts in sourcing, including a rise in onshoring. Manufacturers announced $70 billion in investment in the EV supply chain alone. Logistics are also evolving as companies adjust to handle increasing demands with a reduced labor force. A variety of statistics reflect supply chain conditions.
The Statistics in Supply Chain Management
● In terms of supply chain visibility, only 6% of companies report a complete view. During the pandemic, 38% of domestic small businesses coped with delays. With a market value of $15.85 billion, the global supply chain significantly affects business operations. This effect can be expected to increase as the CAGR experiences a growth of 11.2% in the span from 2020 to 2027.
● With 90% of shipping now taking place by sea, onshoring will generate significant savings.
● The average supply chain adds a cost of 13.2 % for industrial manufacturers. Some companies have reduced this to 7.9%, a 40% savings.
● For companies looking for a competitive edge, 57% believe supply chain management is key. On-time delivery leads to better service and higher customer satisfaction.
● Companies have considerable room for improvement. Only 22% maintain a network acting proactively to improve their supply chains. Among small businesses, 43% don’t track their inventory.
● U.S. companies still deal with delays and restocking challenges. Due to a supply chain accuracy of only 63%, lack of stock results in late shipments in 34% of businesses.
● Supply chain disruptions also adversely affect mergers and acquisitions, causing 66% of slowdowns.
● IT operations also suffer as supply chain disruptions cause 68% of outages.
To improve these statistics, businesses are adopting five supply chain trends.
The Latest Trends in Supply Chain Management
1. Digitization
Business is heading full bore toward digitization. This trend includes technologies like artificial intelligence, machine learning and the Internet of Things (IoT). Many industries experience a surge toward automation. Predictions see 45% of supply chains as totally autonomous by 2035. Some of the changes would involve the following:
● Robots replacing employees in warehouses and stores.
● Driverless forklifts and trucks.
● Delivery by drone.
● Automated planning.
The hope for digitization, however, is not merely coping with a reduced labor force. Digitization will strive to connect all aspects of the supply chain to make the work easier and more efficient.
2. Sustainability
Sustainability in supply chains increasingly captures the attention of businesses and consumers. One sustainability solution is partnering with experts such as environmental consultants. An additional strategy is using suppliers close to production, reducing the carbon footprint of transportation. Other aspects include reducing waste and carbon emissions. Sustainability also connects with the social and economic impacts of an operation. Improving these can lead to better community relations and customer perceptions.
3. Resilience and Risk Management
The COVID-19 pandemic revealed the vulnerability of the supply chain. Resilience and risk management are about challenges that may exist and preparing to meet them. This trend addresses both planning and sourcing. Businesses will balance the cost of preparedness against efficiency and the bottom line.
4 Collaboration and Partnerships
Teaming up with other businesses yields several benefits. One option is collaboration on total transportation costs. This may involve longer contracts as well as bundling storage and shipping services. Companies can also share data. This strategy focuses on targets likely to yield the greatest return on investment (ROI). Collaboration with suppliers brings greater visibility to orders, shipments, inventory and costs.
To best exploit these trends, businesses must stay current on sourcing, partnership and logistics options.
Keeping Up
The power behind IndustryNet provides accurate and up-to-date profiles on all U.S. companies. Utilizing IndustryNet enables businesses to source the products and services for effectively managing supply chain tasks. To learn more, set up your free account today and see what IndustryNet can offer your business!
Article Sources:
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