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Posted 15th June 2022

Supply Chain Chaos: How Long Until They Recover?

Supply chains are struggling to recover from the damaging effects of the pandemic. Couple this with the fact that a mere 6% of brands feel they have full visibility of the supply chain, and it's easy to see why the pandemic had such a detrimental impact on supply chains.

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Supply Chain Chaos: How Long Until They Recover?
Supply Chain

Supply chains are struggling to recover from the damaging effects of the pandemic. Couple this with the fact that a mere 6% of brands feel they have full visibility of the supply chain, and it’s easy to see why the pandemic had such a detrimental impact on supply chains. Then you have to consider there has also been a 650% rise in supply chain targeted cyberattacks, and it’s easy to see why supply chains across B2B and B2C networks are scrambling to recover.

The result of a constant barrage on supply chains is damaged buyer-to-business relationships, cost implications, and damaged business reputations. Below, we’ll look at the causes of the supply chain chaos, what brands can do to gain more supply chain visibility, and when it’ll all return to normal order.

 

Why the Chaos?

It all started with the pandemic. Many supply chains simply shut down due to a lack of trading and a lack of the ability to trade. The result is an estimated $4 trillion in lost revenue for supply chains across the globe. Break that down into individual sectors – like the automotive and transportation that lost up to $100 million in revenue – and it’s easy to see why supply chains are struggling to recover.

Just when everyone thought supply chains were back in business, the new software packages developed to support supply chains at the back-end of the pandemic were heavily flawed. In comes the 650% rise in cyberattacks targeting the software that cost the industry more millions. Factor in staffing issues and product shortages, and it’s easy to see why supply chains across the globe are struggling to recover.

 

Creating More Supply Chain Visibility

For individual brands, there’s a lack of control and visibility of the supply chain that can cause further disruptions. The software that aimed to create more visibility and control failed, but there are other ways of tracking activity across the supply chain that benefits brands. One example is incentive programs that reward sales, referrals, and even communication.

If you click here, you’ll notice that an incentive program isn’t only for buyers; it’s for vendors and distributors. When offering incentives and using a program that tracks activity, it’s easier to have more supply chain visibility. They also improve collaboration and communication across the entire supply chain.

 

When Will Supply Chains Return to Normal?

Some experts believe the current operations of supply chains are the new norm but that they will slowly recover somewhat throughout 2022. The recovery refers to the current economy and financial state of supply chains – in terms of how supply chains operate, that’s expected to remain much the same. Supply chains are now relying heavily on software to automate processes. Despite flaws, automation is now a key part of supply chain operations.

Supply chains are battling the ripple effects of the long-lasting pandemic fuelled crisis – the primary issue now is a lack of supplies and an increase in demand that supply chains are struggling to manage. The result is a backlog of orders that are affecting businesses and consumers. Still, we can expect to see it stabilize by Q3 of 2022.

Categories: News, Strategy


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