Global supply chain crises in 2021 have all businesses concerned. Nearly 66% of consumers believe that there’s no end to this crisis, while 82% of people think that this problem will ruin their life plans, like vacations, holidays, and consumption of various products. Expert reports show that 87% of Americans suffered financial losses, both business-wise and in terms of their consumption, due to the shortages in supply chains.
So, what exactly happened to the world’s supply chain, and how is it doing right now?
91% are worried about what the future holds after the current pandemic, and ongoing supply chain crises.
The situation is improving with regard to the pandemic. The crisis remains even though the situation is improving. That’s because of the ongoing war in Ukraine.
Supply chains around the world have suffered from major disruptions due to Russia-Ukraine war. Many companies were forced to change their shipping routes as a result of the conflict. This has caused massive delays.
Companies that depend on maritime transport more than land-based transportation are particularly vulnerable. Many businesses are forced to change the supply chains as a result of conflict.
A good example of how this war is impacting supply is the case with Apple’s iPhone SE. Apple is now going to make 20% fewer iPhone SEs than what it had originally planned on doing in 2022’s second quarter. Many other companies have had to either reduce production or stop it altogether, just like Apple.
The supply chain and the economy are being affected by sanctions imposed against Russia. The sanctions have made it impossible for several countries to access top Russian exports, such as crude oil, refined petroleum and petroleum gas. So, not only is the war affecting the supply chain, but it’s also pushing the world towards an energy crisis.
One of the most severe supply chain crises in history. So, they must know how to tackle this crisis, and here’s how.
Logistics intelligence allows you to reduce your dependence on traditional transport systems, and gain more detailed information about your supply chains in real time. You will be able to make more informed decisions that will result in a smoother running of your business.
You can now automate your inventory and stock forecasting with logistic intelligence. With such an automated system, you can automate warehouse planning and route planning.
What caused this crisis and its current status, as well as how companies can get out of it.
Entrepreneurship Life published the article How Businesses can Combat Global Supply Chain Crisis 2022.