What Is Happening in the Supply Chain Industry in 2020-2022
The global pandemic in 2020 has significantly transformed the logistics and supply chain marketplace. Due to the lockdown, the tendency for online shopping skyrocketed as people were locked in their apartments and houses. That switch put huge pressure on supply chain logistics. It took time for companies, even smart mastodons like Amazon and Walmart, to accept a new reality and find fresh opportunities for running a business to be able to keep up with the demand. Besides, because of pandemic restrictions, many manufacturers or suppliers temporarily put their processes on pause. Hence, there was a new challenge — finding and managing new ways to replenish the warehouses and shelves..
The moment the world, and the supply chain and logistics field in particular, started recovering from the consequences of the COVID-19 outbreak, a new economy-shattering crisis happened. As russia invaded Ukraine on February 24, 2022, this put additional pressure on supply chains. The World Economic Forum states that the supply chain management industry has seen a significant disruption in 2021, costing major economies €112.75 billion in GDP. Experts project that the russia-Ukraine war could lead to an additional GDP loss of up to €318 billion in 2022, which inevitably causes inflation to climb.
The recent 6th package of sanctions imposed on russia by the EU bans the import of all russian seaborne crude oil and petroleum products, which make up 90% of oil imports from the aggressor. Previously, President Biden banned the import of russian oil, liquefied natural gas, and coal to the United States. Because of these restrictions, the prices for gas, oil, and electricity have seen a rise, which poses a new challenge for supply chain companies.
Also, Bloomberg emphasizes China’s crisis. This country accounts for around 12% of global trade. Its new COVID restrictions in 2022 that involve full or partial lockdowns in more than 45 cities have idled factories and warehouses. Moreover, they slowed truck deliveries and exacerbated container jams. American and European ports are already swamped, making them extremely vulnerable to additional loads.
However, there is a positive tendency to handle the serious challenges in the supply chain. For example, President Biden signed the Ocean Shipping Reform Act of 2022 (OSRA 22) on June 16, 2022. This revision of maritime legislation is going to fight core inflation.
As technology is constantly evolving, new apps, software features, and other tools emerge at lightning speed. In the supply chain segment, digitalization serves a mission to eliminate the pressure on this industry. Some companies use off-the-rack software that offers popular features, while others prefer to build a custom solution to get the toolkit that will keep them several steps ahead of their rivals. So, businesses get more tools to manage their logistics and supply chain to meet modern challenges.
Considering the extent of the crisis this industry is yet to overcome, keeping up with the tech novelties for supply chain businesses is a must. Undoubtedly, with the successful implementation of supply chain and transportation technology, you will confidently swim across the existing and upcoming challenges in the markeplace.
ON A PRACTICAL NOTE
Embedded Integration Solution in action delivered for our clients.
Embedded integration confidently makes its way to the most popular logistics tech trends. We have managed data synchronization for many companies. Here are some integrations we implemented:
- ComData – instant electronic checks;
- EFS – fuel cards;
- Build-in phone calls, SMS, MMS, and other telephony;
- netSuite – integrated administration services of business finances and operations.
All the organizations report that the productivity of their employees has dramatically improved. From the staff’s part, we were informed about the decreased digital fatigue. Besides, workers say that they are more focused now. Switching between apps takes time and costs concentration. By bringing all the tools to one place, the need to renew their attention dropped to a minimum.