As we begin to recover from COVID-19’s impacts on the global economy, inventory shortages and delivery delays continue to negatively affect the supply chain around the world. And it’s on the minds of Canadian business owners: UPS surveyed 111 Canadian SMBs to better understand their ongoing concerns around growth. In 2022, ongoing COVID-19 impacts placed disruption in the supply chain as the top concern for most businesses.
Source: UPS Canada
Given the ongoing challenges in the supply chain around the globe, what is the outlook and how can you be prepared for the rest of 2022?1. Success depends on a good plan.
Demand is at an all-time high, and supply is struggling to keep up. Develop a supply chain plan 2-3 months ahead of time, and make sure to communicate that plan clearly to your employees, suppliers, and transportation service providers. Bolster inventory levels as much as possible, and account for continued lengthy transportation times to receive your shipments. 2. Teamwork makes the dream work.
Make sure to educate and engage parties at every stage of your process: ordering, manufacturing, shipping, etc. In addition, clear and transparent communication can encourage ideas and solutions and may reduce friction when last-minute changes are necessary.3. Progress takes time.
Though we continue to see near-record numbers of ships anchored outside key ports around the globe, we’ve seen moderate improvements in some areas. For instance, congestion at the Port of Shanghai was in early June 2022 returning to levels seen before the COVID-19 lockdowns.4. Data is king.
Investment in data analytics is critical. More planning and forecasting will allow businesses to consider inventory management for possible future states and build flexible plans to address potential issues that may arise.5. Rate reductions aren’t in the forecast.
High demand, growing fuel costs, labour shortages, and various other circumstances may continue to affect shipping rates across all modes and lanes. 6. Capacity will continue to cause headaches.
With growth in the forecast for both air and ocean volumes, companies may continue to struggle to find space to ship their goods. But infrastructure investments are beginning to pay off: in May 2022, the air cargo market saw a 4% increase in capacity and a 7% drop in demand compared with May 2021. 7. Prepare to be flexible and consider alternate shipping options to keep freight moving.
Our supply chain design and planning services will help you create the supply chain you need to bring out the best in your company. Our designers and engineers will go beyond the abstract and produce a plan that will leverage the unmatched scope of UPS logistics capabilities to benefit your business.UPS Supply Chain Design and Planning Services can help your business thrive in today’s increasingly complex global marketplace, and CPSA members also receive 50% flat off all UPS services. Click here to learn more: https://www.cpsa.com/exclusive-benefits/business/upsTell us what’s important to you
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