The transportation and logistics industry has faced historic shifts over the past couple of years. At 24/7 Express Logistics, we have rolled with the changes and found new, creative ways to help our customers keep business moving forward. Being mindful of what’s around the corner helps us better serve our customers. Recently, supply chain risk analytics provider, Everstream Analytics, released their 2022 Risk Report detailing the top five supply chain risks that global companies should watch for over the next year. We’ve broken down the report to give you the highlights and help you stay prepared.
- WATER INSTABILITY
The United Nations reports that 33% of the global population will face water shortages by 2025 as a result of population growth, rapid urban and industrial development, and extreme weather events. These shortages impact industries that rely on water in their manufacturing processes, as well as transportation of cargo. For instance, in 2019 draft restrictions were put in place for vessels passing through the Panama Canal due to historically low water levels. In turn, ships were required to reduce freight capacity leading to more frequent delays and higher costs.
- OCEAN FREIGHT BOTTLENECKS
The grips of COVID-19 outbreaks driving worker shortages and shipping delays are projected to continue their impact into 2022. This, coupled with high consumer demand and record-low inventory levels will continue to slow the ocean cargo industry.
- THE LABOR FORCE
In response to “The Great Resignation” and ongoing pandemic impacts, companies will need to reassess safety and compensation in the workplace to build and retain necessary workforce levels to meet business demands.
- SHIFTING FROM JUST-IN-TIME TO JUST-IN CASE
The pandemic exposed flaws in the just-in-time system. Many companies are now moving to “just-in-case” models for inventory management to better prepare themselves with an increased buffer of critical components and best-selling products.
- REGULATORY RAMP UP
Be on the lookout for potential additional regulations coming in 2022 that could impact the global supply chain. Driven by human rights and climate change issues, the overall supply chain and international businesses alike may face additional scrutiny from governments, investors, and customers in the coming months.
Be prepared for what lies ahead! Contact 24/7 Express Logistics to keep your logistics operations running smoothly and efficiently. Email us at sales@24/7expresslogistics.com, call 866.866.2477 or visit www.247expresslogistics.com.