Manufacturing and Supply Chain Expert, Lisa Anderson, MBA, CSCP, CLTD, President of LMA Consulting Group Inc., predicts that supply chain disruption will continue well beyond 2024. LMA Consulting Group works with manufacturers and distributors on strategy and end-to-end supply chain transformation to maximize the customer experience and enable profitable, scalable, dramatic business growth.
“The supply chain disruption is real and will last for quite some time,” Anderson comments. Every supply chain is a complex set of connections that spans from the supplier’s suppliers to product or service accessibility for the end-user. “Let’s look at the ‘why’ of the disruption. If you remove industry nuances, there are three main causes of the disruption. The first cause is labor. The pandemic exacerbated the ongoing drain of skilled boomer workers, many of whom took early retirement. The pandemic also caused workers to reassess their priorities. That resulted in people deciding that they didn’t like their industry or job or their boss. This has manifested into what many are calling the Great Resignation,” Anderson says.
Labor shortages exist in almost every industry and position.
“Manufacturing, transportation, distribution, none of these industries are exempt. And, most of these industries affect the consumer, who has felt the supply chain pinch the worst,” she adds.
The second reason for supply chain disruption is misalignment.