Shortages have been heightened by surges and pent-up demand
After nearly a year of dialing back, the consumer is venturing out with stimulus checks. Manufacturing, construction, retail, and distribution have seen the most significant impact. The situation has been made worse by depleted inventories, price increases, and transportation and shipping problems. Not only that, items like new cars lacking critical microchips and lack of lumber for new housing starts are rapidly increasing prices. Supply is not meeting demand and will not be resolved any time soon as the supply chains grapple with the next wave of challenges.
Today shipping and transportation is a key bottleneck
Shipping and transportation is delayed and is especially true when shipping from China. It requires more than double the lead time and containers are still difficult to find with prices two to three times higher. The rate of delinquent shipments has sharply increased. Labor shortages have made matters more difficult. The labor shortage in the transportation industry was peaking even before the pandemic, but even staff to manage the process is an issue. Industry sources report that many of the more senior staff in supply chains and logistics is retiring rather than dealing with the constant issues and the stress around shipments and unhappy customers.
Worsening supply-demand imbalances are expected
A survey of purchasing managers was recently conducted by the Institute for Supply Management. They anticipate disruptions to last for longer than 12 months, with reports of this situation dragging on well into 2023.
4 Key Actions to Create a More Resilient Supply Chain
4
Made with FlippingBook Ebook Creator