[Advantage Logistics] The past 2 years have been a historic and challenging period for the global supply chain and logistics industry. This 2022, we are still facing anomalies. Transport teams are still trying their best to meet the market’s demand in a short time, with the current state of overloaded infrastructure, delays in most stages and rising service prices.
Here, we invite you to learn about the four most prominent logistics and supply chain trends in 2022, with each offering the greatest opportunities for productivity and efficiency gains.
1. Plan ahead for prolonged staff shortages
People are slowly learning to work more with fewer resources through the current driver shortage. This slows down significantly for companies looking to expand their fleets or increase capacity. Unfortunately, this problem won’t go away anytime soon as nearly a quarter of the trucking workforce is expected to reach retirement age within the next decade. According to the National Transportation Institute (NTI), this retirement accounts for 54% of the driver shortage over the past several years.
However, the problem is not only with the shortage of drivers. With so many container ships waiting outside the port, it should come as no surprise that loading and unloading workers start going on strike over the next few months. Supply chain professionals who can help organizations thrive through this crisis are also in high demand.
With today’s fierce competition for personnel, do everything in your power to treat your employees fairly. If you own a fleet, make sure the drivers feel loved at all times; or if you are a broker, treat partners with the utmost respect and fairness.
Also, look for ways to maximize the time and resources you have by expanding the number of employees who can assist you with your needs and growth. You can always find new opportunities to save drivers time and use technology that allows supply chain professionals to focus on more strategic tasks.
2. The capacity crisis will continue
Currently, there is too much demand and almost not enough supply capacity, from which a complete storm has been gradually building up over the years and things are aggravated by the growth in volume demand. Shipping affected by Covid-19.
Rent per carrier can be as much as $200,000 a day, and some brands even pay premiums to ship products by air. In 2020, Apple chartered 200 private jets to transport devices – setting a new record for the company. It will take a long time for productivity to catch up with current demand, and companies need to make the most of the capacity they have by closely monitoring asset utilization and prioritizing shipments. more important.
3. Mergers and Acquisitions Will Grow
Globally Shipping companies and manufacturers are both investing in tracking capabilities through mergers and acquisitions (M&A), with deals up 86% year-on-year in the first half of 2021. UPS recently acquired Roadie to own both the technology and the ability to expand UPS’s existing network, while Panasonic also owns Blue Yonder – an end-to-end supply chain management service based on AI technology.
Given the shortfalls in human resources and operational capacity, awareness of the current situation may show that businesses have the opportunity to add capacity and manage growth in the most sustainable way. Order tracking capabilities are now being accepted as a strategic method to increase efficiency and optimize logistics operations, and we can expect to see more companies adopting these capabilities throughout 2022 through M&A.
4. Invest in infrastructure and open up new paths
We always need new ships, new trains, new planes, new ports – and if we can build the supply chain infrastructure overnight, any pressure on productivity will certainly be reduced. significantly less for the current market.
Of course, there is no miracle for this wish to come true and it will take a long time to catch up with the current infrastructure needs. Experts also hope that the government can untangle operations and pass a new infrastructure bill so businesses can start improving their current productivity. Until then, businesses still need to continue to look for more effective and optimal methods to optimize their capacity and be more competitive.
It is hoped that we will finish and overcome all difficulties when the upcoming holiday season is over, but it is likely that the supply chain situation in 2022 will continue to get worse. However, the good news is that many companies are still not maximizing the productivity that they are. By taking the right strategic steps every step of the way, you can set your company apart from the competition – despite the many challenges in today’s marketplace.
Source: Vietnam Logistics Review
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