As strategies continue to solidify around private shipping options and the shortening of supply chains, there is a knock-on impact set to continue for at least the first half of 2022 comments Manufacturing and Supply Chain Expert Lisa Anderson, MBA, CSCP, CLTD, President of LMA Consulting Group Inc.
Global supply chains have been in a state of disruption for the past few years due to a combination of rising trade tensions and the impacts of Covid-19.
Of this double whammy, Damien Bruckard, deputy director of trade and investment at the International Chamber of Commerce in Paris, says: “The collapse and subsequent surge in consumer demand during the pandemic has led to significant shortages of manufacturing components, order backlogs, delivery delays and a spike in transportation costs and consumer prices.”
As supply chains move past the immediate impacts of the pandemic, Band-Aid solutions such as chartering private container ships and stockpiling are being replaced by restructured supply chains that put the emphasis on security rather than fiscal savings. The allure of low-cost labour is being outshone by the desire to have resilient and robust supply chains that can respond to crisis with more agility.