Supply chain disruptions are now appearing at every turn as the global economic recovery gains steam. So, businesses should plan for supply chain shortages by finding additional sources of supply and possibly investing in higher inventories than usual to support increased and unpredictable consumer demand. Although businesses are already experiencing numerous problems, there are a host of other issues that have been simmering for years and will begin to surface. This article by Jim Yarbrough at Corporate Compliance Insights speaks about the growing business logistics challenges in 2022.
Supply Chain Today
A global supply chain crisis has dominated board rooms and kitchen tables. Few organizations have dealt with issues of such magnitude before, and many only wonder how long the problem will last. As such, the U.S. Department of Transportation will allow port authorities to redirect project savings towards business logistics. Therefore, organizations should now make time to take a holistic approach to demand and supply management, looking beyond traditional partners, methods, and technologies.
Identifying Supply-Chain Problems
BSI’s Supply Chain Risk Insights report for 2021 describes highly inflated shipping costs as one of most organizations’ major concerns during the current pandemic. In some cases, shipping costs are as much as 650 percent higher than before the pandemic.
Communicate effectively with all parties to gather timely information about the product’s whereabouts. Having all the product-related updates and information available is imperative to act quickly. Finally, the entire organization must have a unified vision, objectives, and strategy, along with its required standards and reporting requirements.
How To Identify the Right Supplier
Consider the supplier if your answer is yes to the following questions:
- Is the supplier willing to identify, address, and mitigate threats across the supply chain?
- Does the supplier intend to grow with the organization and help address the key challenges the industry will face?
Preparing for Regulation Changes
Organizations must be prepared for any regulation changes heading their way. These changes are evident with the Modern Slavery Act in the U.K. and the U.S. Securities and Exchange Commission’s (SEC) upcoming environmental, social, and governance (ESG) guidelines. Organizations must be constantly vigilant for new and evolving regulations and re-examine their supplier agreements to ensure compliance.
The author also speaks about adapting to multiple demand and supply challenges and building resilient supply chains.
To read the original article, click on https://www.corporatecomplianceinsights.com/organizations-confront-supply-chain-challenges-2022/
