Top Trends Impacting the Global Supply Chain in 2022
Empty shelves and rising costs have consumers and suppliers alike wondering about the supply chain trends 2022 will bring. According to Phil Levy, an economist for a California-based freight company, a normal supply chain is “unlikely to happen” anytime this year.
Still, there are some trends in supply chain management that show a glimmer of hope. Here are some questions we hear about supply chain trends in 2022, and our answers:
What Impact Will the Ukraine-Russia Conflict Have on the Global Supply Chain?
First, recall that Russia has historically provided a significant amount of oil to the world. The current crisis will make it challenging for western countries to obtain access to fuel, which could create additional delays and raise shipping costs.
Finally, many companies are severing trade with Russia, which is disrupting the global market as producers seek new outlets for their shipments. All of these factors could have far-reaching consequences for the international shipping market, especially as the situation continues to evolve.
Will Container Track and Trace Solutions Improve Supply Chain Speed?
While track and trace technology provides greater visibility for the global supply chain, three challenges persist.
First, it’s difficult for steamship lines (SSLs), ports, and carriers to determine time spent at anchor, causing problems in predicting shipping dates.
Second, it can be difficult to maintain visibility across multiple bills of lading (BOLs) because international shipments are multimodal.
Third, every mode of shipment must be compatible with this technological architecture. When one transportation method lacks visibility, it compromises the entire system.
How Are Suppliers Balancing the Need for Efficiency with the Demand for Environmental Sustainability?
One of the future trends in supply chain management has to do with the gap between corporate philosophy and the boots on the ground.
On the one hand, we’re seeing more companies adopting environmental, sustainable governance (ESG) policies and making commitments to fighting climate change.
But at the same time, the infrastructure isn’t always there to follow through with these commitments. Sure, some local companies are adopting electric delivery trucks, but that’s just one small part of the supply chain as a whole.
It’s likely that in the coming years, companies will put increased pressure on logistics providers to commit to socially responsible and environmentally-friendly business
How Is AI Impacting the Supply Chain?
Artificial intelligence (AI) has grown in its use for planning routes and managing demand but AI also has the potential to be one of the biggest trends in supply chain management.
Additionally, we’ll likely see an increase in the use of Augmented Intelligence, which combines the best AI solutions with human input. Augmented Intelligence is great for applications like route planning, which benefit from experienced human planners in addition to computer algorithms.
These future trends in supply chain management will help shipping companies maintain a competitive edge in a rapidly-changing global market.
Will Labor Shortages Continue to Impact the Supply Chain Trends (2022)?
Unfortunately, higher wages alone don’t seem to be attracting new workers to the supply chain, and those who enter the shipping and logistics fields don’t come with the skill sets necessary for the industry.
These challenges will likely persist, with companies evolving their recruiting process and benefits package to fill open positions. For example, one logistics company discovered that implementing changes to provide a better work-life balance resulted in worker retention improving by between 10% and 15%.
Supply Chain Trends 2022 and Beyond
No one has a crystal ball, but these trends will likely influence the global supply chain for years to come. At R2 Logistics, we provide industry-leading services to help you manage every aspect of your shipping process. For insightful answers to additional questions, contact our innovative team today.