2021: A year of challenges for the supply chain

The COVID-19 pandemic has brought about unprecedented supply chain challenges, it continues disrupting world economies, even in countries that have the pandemic under control and business has to deal with a “new normal”.

Even though the pressure to get the economy back on track, ongoing uncertainties and supply chain challenges are still present. Systemic supply chain weaknesses were revealed, and while all suffered, companies that had not kept up with critical supply chain trends were the most affected. Looking ahead, as companies strive to reestablish supply lines and restart manufacturing, they should consider these supply chain challenges for 2021:

Higher Demand Within E-Commerce

Demand will continue growing as more clients move towards e-commerce enabled platforms. The big challenge for shipping managers and forecasters is to improve organization throughout the chain network. Better forecasted sales, balancing the flow of supply and demand, improving product availability and shipping lines, and fewer delays and issues along the shipment chain.

What’s Going Wrong to Decrease Efficiency?

The most successful shippers and freight forwarders usually have an efficient process that helps to reduce time, faster order issues, and avoid payment delays. It’s not just systems and technology that are important to supply chain efficiency, people are as well. Competent supply chain professionals are key to helping leverage its supply chain.

Prompt Replies to Customer Complaints

Another area of concern for shippers is the constant need to improve the relation with the customers. If achieved through improved communication, better freight management, responding to customer complaints effectively is a must. A loyal customer, along with a flowing stream of new customers, will ensure the company stays vital and beyond, s this is a big supply chain challenge for 2021.

Communication Failures Amount to Big Delays

One of the most important difficulties to improve for many supply chains is low communication. When information cannot be shared or processed quickly and accurately, things suddenly come to a standstill. As a result, delays are exacerbated and result in damage to the customer experience. Unsuitably communication failures can go unnoticed until the customer reports an issue.

Single-source Amplified Supply Chain Risk

Many companies have centralized on single-sourcing strategies, possibly because this was perceived to be the lowest-cost way. Unfortunately, this also means companies are vulnerable if suppliers face deficit or production interruptions. In this order of ideas a single sourcing is risky and a guaranteed way to lose sales when disruption occurs. Instead, companies should focus on a risk mitigation approach.



2021: A year of challenges for the supply chain

It’s not just systems and technology that are important to supply chain efficiency, people are as well

People photo created by pressfoto – www.freepik.com


Slowed Digital Transformation

Another supply chain challenge for 2021. Access to data is important for effective decision-making. Unfortunately, many organizations have a mix of manual and digital systems that effectively trap information, but the decision-making is hampered by an incomplete picture. It’s very important that companies create ways to access supply chain data through the introduction of technologies that allow data to flow freely. Additionally, companies need systems that allow them to monitor, manage and observe the impacts of decisions.

Eliminate Traditional Inventory Strategies

Conventional inventory systems, don’t take into consideration unexpected events, nor is it agile and is often completely different from reality. An outside-in strategy to supply chain challenges that look at using streaming data to drive insights, determine market changes, and establish demand. Additionally, the next generation of advanced inventory optimization techniques can help manage unpredictability better than traditional inventory solutions.

Lack of Update Data

It’s a common theme, the management often doesn’t have sufficient information at hand to make informed decisions. Additionally, supply chain complexity makes it difficult to evaluate various alternatives and scenarios to arrive at the best decision.

The answer to this dilemma lies in the use of modern optimization techniques, this form of supply chain modeling allows you to use the large volumes of structured and unstructured data available to the company to evaluate different scenarios, and determine the best way to overcome supply chain challenges and achieve supply chain aims.

Drive Flexibility

A flexible supply chain can adapt to new market needs and conditions quickly. It requires high levels of visibility and integration, but true flexibility also necessitates the capability to plan and re-plan in real-time. As the pandemic goes on and the global economy reopens, you can expect more types of very specific spikes in demand for products.

The top supply chain challenge for 2021

Keeping operations on track in spite of the coronavirus and all of its attendant disruptions. These disruptions have taken all shapes and sizes, from the obvious supply shortage that arose from an overreliance on single-sourcing in impacted areas. In this order of ideas, there is any number of smaller challenges that will define your success or failure of your business. Perhaps suddenly, these don’t look that different from the top challenges of years past—it’s just that the pandemic has shed new light on them and, in many cases, made them more on the ball.

Historical inventory management strategies have been found wanting. And the lack of digitalization has meant that crucial information is hidden away in silos and obscure legacy systems. It’s absolutely crucial organizations map out their supply chains, in detail, to identify vulnerabilities and weaknesses. This data will allow fast and decisive action.

Now you know the supply chain challenges for 2021, a reliable logistics partner, can help your network be more effective. In CARGO CARE SERVICES we will keep you informed about the situations which affect our sector and you can count on us to improve your supply chain.

Contact us today!