Supply Chain – How important it is in 2022?

According to recent research, more than 65% of chief executives plan to increase investments in disruption detection and innovation processes. But, as COVID-19 and unpredictable demand continue to impact supply chains, how can businesses improve performance?

Creating a harmonious balance between robustness and efficiency will largely depend on staying on top of logistics and supply chain trends.

To keep supply chains running in 2022, companies need to tackle the shortage and invest in driver retention by offering more attractive incentives such as better pay and safety measures.

One business model that’s being widely adopted is a pay-per-drop or pay-per-delivery model, which helps unlock the supply chain bottleneck by incentivising drivers to increase the number of deliveries they make each day.

We expect autonomous vehicles to become a key trend in the logistics and supply chain industry this year and have already seen a rise in automated equipment

While production delays are expected to remain a key trend in 2022, supply chain constraints have encouraged many companies to revisit their long-term supply chain strategies and find new opportunities for growth and innovation.

To save costs on cross-border shipping, meet customer demand and maintain supply chain efficiency, we expect to see a rise in the number of companies partnering with multiple logistics providers and using alternative delivery methods.

If the past two years have taught us anything, it’s that supply chains need to be flexible and responsive to deal with unforeseen challenges and potential disruption.

Logistics companies could overcome growing volatility by utilising “elastic” strategies, providing firms with the flexibility to meet fluctuating demand.

Elastic logistics is a term to describe a supply chain model that can be easily scaled in either direction and often leads to excellence in supply chain performance. Companies that embrace elasticity to guide their operations can provide the capabilities needed to become agile, adaptive and resilient during the most random demand patterns.

Elastic logistics can also help reduce costs, minimise risk and boost a company’s competitive edge by increasing efficiency and boosting overall customer satisfaction.

It’s now more important to ensure that operations are flexible and resilient so that management can enforce scalable measures to alleviate a crisis while ensuring corporate goals stay aligned with connected supply chains.