New normal presents new way of doing things for supply chain leaders

Team Slync

February 5, 2022

If you’re looking for a sudden return to a normal, pre-pandemic operating environment, keep waiting. Unless we see an unprecedented decline in demand for goods in western markets, carriers, shippers and logistics service providers (LSPs) will continue to experience more of the chaos that seen over the past year. And, just as things start to look stable again, another peak season will be upon us.

Pressure at ports and terminals will ease throughout the spring, but it will take time to overcome the fundamental imbalance in capacity, inventory and demand that still affect global supply chains. These challenges aren’t simply the result of physical constraints – there are more vessels and containers circulating today than there were in 2019, longer operating hours at terminals, and near-normal belly cargo capacity as air travel continues to rebound. However, manufacturers and retailers are still feeling the consequences of maintaining highly optimized supply chains.

The flow of information between parties needs to match – or even outpace – the flow of physical goods.

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The same principles that enabled just-in-time manufacturing and lean inventories were also partly responsible for the fragility seen across global supply chains since the start of the Coronavirus disease (COVID-19) pandemic. Everything fell out of balance, and with that, logistics suffered too.

Today the focus is on creating operational resiliency across global supply and logistics networks. But, to do so takes more than planning and capacity alone. The flow of information between parties needs to match – or even outpace – the flow of physical goods. This remains the biggest opportunity in logistics and supply chain today, and one area where all enterprises should focus their efforts in 2022...

[This article was originally posted by Supply & Demand Chain Executive. To continue reading, visit SDCExec.com.]
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